Plasterers Local 82 Pension Fund 

Application for Approval of Suspension of Benefits Under the 

Multiemployer Pension Reform Act of 2014 

Exhibits 

Exhibit 1  Trustee’s Statements as to Penalties of Perjury and Public Disclosures  19 

Exhibit 2  Plan Actuary’s Certification of Plan’s Critical and Declining Status  20 

Exhibit 3  Plan Actuary’s Supplemental Information to Actuarial Certification  25 

Exhibit 4  Actuarial Certification of Plan Solvency of Proposed Benefit Suspension  33 

Exhibit 5  Wages and Fringe Benefit Contributions of Plasterers Locals  50 

Exhibit 6  Demonstration that Limitations on Individual Suspensions are Satisfied  51 

Exhibit 7  Reserved  N/A 

Exhibit 8  Demonstration of Distribution of Suspension of Benefits  68 

Exhibit 9  List of Contributing Employers  69 

Exhibit 10  Additional Information for Proposed Benefit Suspensions  70 

Exhibit 11  Plan Sponsor Certifications relating to Plan Amendments  87 

Exhibit 12  Narrative Statement  88 

Exhibit 13  Plan Documents  92 

Exhibit 14  Excerpts from Collective Bargaining and Side Agreements  202 

Exhibit 15  Excerpts from Form 5500  207 

Exhibit 16  Rehabilitation Plan  275 

Exhibit 17  Actuarial Valuation Reports for 2016 and 2017  287 

Appendices 

Appendix A  Notices  397 

Appendix B  Information on Actuarial Assumptions and Methods  442 

Appendix C  Power of Attorney and Declaration of Representative  451 

Appendix D  Checklist  Cover 

Application Page 18


1 

j:\ppp\letters\180701.docx 

PLASTERERS LOCAL 82 PENSION FUND 

Actuarial Certification Under IRC Section 432(b) 

for the Plan Year Beginning January 1, 2018

Plan Identification 

Plan Name: Plasterers Local 82 Pension Fund 

EIN/PN: 93-6075453/001 

Plan Sponsor: Board of Trustees of the Plasterers Pension Trust

Address: 12812 NE Marx Street 

Portland, OR 97230 

Telephone Number: (503) 232-3257 

Plan Year: Plan Year beginning January 1, 2018 

Enrolled Actuary Identification 

Name: Ladd E. Preppernau 

Enrollment Number: 17-06705 

Address: 111 SW Fifth Avenue 

 Suite 3700 

 Portland, OR 97204 

Telephone Number: (503) 227-0634 

Information on Plan Status 

I hereby certify that the Plasterers Local 82 Pension Fund is “critical and declining” as that term is 

defined in IRC Section 432(b) for the plan year beginning January 1, 2018. Further, I hereby certify 

that to the best of my knowledge and belief, the actuarial assumptions used in preparing this 

certification are individually reasonable and represent my best estimate of future experience. 

Additionally, the “projected industry activity” assumption, as required under IRC Section 

432(b)(3)(B)(iii), has been provided by the Board of Trustees. Supporting information for the 

classification is on page 3 and a summary of the actuarial assumptions and methods used in 

making the certification is on page 4. The information presented is applicable only for the purposes 

stated herein. 

Information on Scheduled Progress 

In July 2010, the Trustees adopted a Rehabilitation Plan, subsequently adopted by the bargaining 

parties, which included the following changes: 

 Reduced the Plan’s accrual rate to 1.0% of contributions for Hours of Service on or after 

December 31, 2010. 

 Restructured the Plan’s early retirement eligibility and benefits for Participants with a benefit 

commencement date on or after August 1, 2010. 

 Modified the Plan’s disability eligibility requirements for Participants commencing disability 

benefits on or after August 1, 2010. 

 Increased the Plan’s hourly supplemental contribution rate by $0.30 effective August 1, 2010. 

Exhibit 2 Application Page 21

3 

j:\ppp\letters\180701.docx 

PLASTERERS LOCAL 82 PENSION FUND 

Actuarial Certification Under IRC Section 432(b) 

for the Plan Year Beginning January 1, 2018 

IRC Section 432(b) Funding Measurements 

Projection of Credit Balance and PPA Funded Percentage 

Plan Year 

Beginning 

Projected 

Credit Balance 

at End of Year 

PPA Funded 

Percentage on 

Valuation Date 

1/1/2017 $(1,200,000) 47% 

1/1/2018 (2,990,000) 50 

1/1/2019 (5,100,000) 48 

1/1/2020 (7,160,000) 47 

1/1/2021 (9,230,000) 45 

1/1/2022 (11,480,000) 44 

1/1/2023 (13,940,000) 42 

1/1/2024 (16,030,000) 40 

1/1/2025 (18,350,000) 38 

1/1/2026 (20,520,000) 35 

The plan is expected to have an accumulated funding deficiency in the current plan year. 

The plan is projected to become insolvent during the 2034 plan year. 

Funded Percentage 

The funded percentage as of January 1, 2017 is expected to be 47%. 

Critical Status Emergence 

The Plan was certified as critical for the 2010 plan year. In order to emerge from critical status, the 

Plan must have no accumulated funding deficiency in the current plan year or the succeeding nine 

plan years. 

Conclusion: Because an accumulated funding deficiency currently exits, the Plan does not emerge 

from critical status for the 2018 plan year. 

Critical and Declining Test 

As of January 1, 2017 the Plan’s inactive to active participant ratio was 2.6 to 1, and the Plan is 

projected to become insolvent within the meaning of section 418E during the current plan year or the 

succeeding 19 plan years. 

Conclusion: The plan is in critical aj:\pppnd declining status for 2018. 

Exhibit 2 Application Page 23
4 

j:\ppp\letters\180701.docx 

PLASTERERS LOCAL 82 PENSION FUND

Summary of Assumptions/Methods for the Actuarial Certification 

Under IRC Section 432(b) for the Plan Year Beginning January 1, 2018 

1. The IRC Section 432(b) measurements are based on the following: 

 The January 1, 2017 participant data, methods and assumptions, as detailed in our actuarial 

report dated December 1, 2017. 

 An unaudited market value of assets as of January 1, 2018 of approximately $19.6 million 

based on information provided by the Plan Administrator and the Plan’s investment 

consultant. The projections reflect an assumed rate of return on the market value of assets 

of 6.25% (net of investment-related expenses) for every year after the plan year ended 

December 31, 2017. No future asset gains or losses other than the gains or losses related 

to the asset smoothing method are reflected. 

 Based on input from the Plan’s Board of Trustees, for each year after the plan year ended 

December 31, 2017 the Plan’s projected contributory hours were assumed to be 110,000, 

The active population and normal cost under the unit credit cost method are assumed to 

change in proportion to expected annual hours. 

 The Plan’s average hourly contribution rate was assumed to be $8.53 for 2018, $9.03 for 

2019, $10.03 for 2020, and $10.53 for 2021 and thereafter. Of these amounts, the average 

hourly contribution rate recognized for purposes of benefit accruals was assumed to be 

$4.18 for all future years. 

 The assumed administrative expenses of $200,000 per year are assumed to increase 1.5% 

each year after 2017. 

 Plan provisions are identical to those used in the January 1, 2017 actuarial valuation with the 

following exceptions: 

a) The Plan’s subsidized Tier 1 early retirement factors were eliminated. 

b) The Plan’s death benefits were eliminated to the extent allowed by law. 

 All actuarial assumptions and methods not described above are the same as those used to 

determine January 1, 2017 actuarial valuation results. 

2. This actuarial certification is based on 1) the proposed Multiemployer Plan Funding Guidance 

provided by the IRS on March 18, 2008, 2) the December 2007 Practice Note issued by the 

Multiemployer Plans Subcommittee of the Pension Committee of the American Academy of 

Actuaries, 3) the “Preservation of Access to Care for Medicare Beneficiaries and Pension Relief 

Act of 2010” (PRA 2010), 4) IRS Notice 2010-83, 5) the ‘Multiemployer Pension Reform Act of 

2014” (MPRA), and 6) action taken by the Board of Trustees prior to the mailing of this 

certification. 

Exhibit 2 Application Page 24
Milliman Supplemental Information 

Issued March 2018 

Plasterers Local 82 Pension Plan 

Supplemental Information to Actuarial Certification for the Plan 

Year Beginning January 1, 2018 

Prepared by: 

Ladd E. Preppernau, FSA, EA, MAAA 

Principal and Consulting Actuary 

Casey B. Baldwin, FSA, EA, MAAA 

Consulting Actuary 

John Q. Rowland, ASA, MAAA 

Associate Actuary 

Milliman, Inc. 

111 SW Fifth Avenue, Suite 3700 

Portland OR 97204-3654

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

Exhibit 3 Application Page 25
Milliman Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning January 1, 2018 i 

Plasterers Local 82 Pension Plan 

Supplemental Information to Actuarial Certification for the Plan Year 

Beginning January 1, 2018 of the Plasterers Local 82 Pension Plan 

This supplement to the Actuarial Certification for the Plan Year Beginning January 1, 2018 for the Plasterers 

Local 82 Pension Plan (the “Plan”) has been completed in accordance with our understanding of IRC 

§432(e)(9) (including §1.432(e)(9)-1 and Revenue Procedure 2016-27).

Purpose of the Valuation 

This supplement is meant to fulfill the additional disclosure requirements laid out in Revenue Procedure 2016-

27 Section 3.01 which are not explicitly shown in the original certification. This information is based on the 

Actuarial Certification for the Plan Year Beginning January 1, 2018 dated March 30, 2017. 

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. We understand this will be provided to Treasury and 

posted on their website. 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 and/or Multiemployer Pension

Reform Act of 2014.

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 on our Actuarial Certification for the Plan Year Beginning January 1, 2018 

dated March 21, 2018 and our January 1, 2017 Actuarial Valuation. 

Limited Use 

Actuarial computations presented here were prepared to meet the requirement set forth in IRC §432(e)(9) 

(taking into account §1.432(e)(9)-1 and Revenue Procedure 2016-27). 

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. 

Exhibit 3 Application Page 26

Milliman Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning January 1, 2018 iii 

Plasterers Local 82 Pension Plan 

Table of Contents 

A. Solvency Projection ...................................................................................................................................... 1

B. Projected Total Contribution Base Units and Contribution Rates ................................................................ 4

C. New Entrant Profile ....................................................................................................................................... 4

Exhibit 3 Application Page 28
Milliman Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning January 1, 2018 1 Plasterers Local 82 Pension Plan A. Solvency Projection 

The following table shows the plan-year-by-plan-year market value of assets projection to insolvency based on the 201current plan year (2018) and the 16 succeeding plan years (through the insolvency year of 2034). 

Plan year beginning January 1 2018 2019 2020 2021 2022 

1. Market value of assets (beginning of year) 19,594,486 $ 19,078,181 $ 18,516,201 $ 17,953,408 $ 17,366,854 $ 

$ 

2. Employer contributions 938,300 993,300 1,103,300 1,158,300 1,158,300 

 

3. Withdrawal liability payments 0 0 0 0 0 

 

4. Benefit payments

a. Current retirees and beneficiaries 2,167,383 2,124,769 2,086,100 2,035,952 1,986,109 

b. Terminated vested participants 115,594 153,186 204,709 222,168 288,592 

c. Current actives 141,303 211,284 272,055 345,533 422,012 

d. New entrants - - - - - 

e. Total 2,424,280 2,489,240 2,562,864 2,603,654 2,696,713 

5. Administrative expenses 203,000 206,045 209,136 212,273 215,457 

6. Investment returns 1,172,675 1,140,005 1,105,906 1,071,072 1,031,451 

7. $ 18,516,201 19,078,181 $ 17,953,408 $ 17,366,854 $ 16,644,435 $ 

$ 

8. $ 21,005,441 21,502,461 $ 20,516,272 $ 19,970,507 $ 19,341,148 $ 

$ 

Solvency ratio (8) / (4e) 8.87 8.44 8.01 7.67 7.17 

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning January 1, 2018 2 Plasterers Local 82 Pension Plan A. Solvency Projection (continued) 

The following table shows the plan-year-by-plan-year market value of assets projection to insolvency based on the 201current plan year (2018) and the 16 succeeding plan years (through the insolvency year of 2034). 

Plan year beginning January 1 2025 2026 2027 2028 2029 

1. Market value of assets (beginning of year) 14,929,591 $ 13,915,329 $ 12, $ 11, 721,143 $ 10,083,376 455,209 $ 

$ 

2. Employer contributions 1,158,300 1,158,300 1, 1, 158,300 1, 158,300 

158,300 

3. Withdrawal liability payments 0 0 0 0 0 

 

4. Benefit payments

a. Current retirees and beneficiaries 1,805,000 1,748,564 1, 1, 689,404 1, 631,238 

571,920 

b. Terminated vested participants 389,386 491,844 509,456 572,659 610,744 

c. Current actives 627,834 691,485 726,801 744,261 781,118 

d. New entrants - - - - - 

 

e. Total 2,822,219 2,931,893 2, 2, 925,661 2, 948,158 

963,782 

5. Administrative expenses 225,299 228,678 232,108 235,590 239,124 

6. Investment returns 874,956 808,085 733,535 653,615 567,285 

7. $ 12,721,143 13,915,329 $ 11, $ 10, 455,209 $ 083,376 $ 8,606,055 $ 

8. $ 16,737,548 $ 15,653,036 $ 14,380,870 $ 13,031,534 $ 11,569,837 $ 

Solvency ratio (8) / (4e) 5.93 5.34 4.92 4.42 3.90 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning January 1, 2018 3 Plasterers Local 82 Pension Plan A. Solvency Projection (continued) 

The following table shows the plan-year-by-plan-year market value of assets projection to insolvency based on the 201current plan year (2018) and the 16 succeeding plan years (through the insolvency year of 2034). 

Plan year beginning January 1 2032 2033 2034

1. Market value of assets (beginning of year) 5,179,239 $ 3, $ 1, 334,696 $ 373,136

2. Employer contributions 1,158,300 1, 1, 158,300 158,300

3. Withdrawal liability payments 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 1,381,391 1, 1, 317,152 251,931

b. Terminated vested participants 763,055 749,393 805,875

c. Current actives 867,315 943,145 946,128

d. New entrants - - -

e. Total 3,011,761 3, 3, 009,691 003,934

5. Administrative expenses 250,046 253,797 257,604

6. Investment returns 258,964 143,628 21,091

7. $ 3,334,696 $ 1,373,136 Insolvent8.

$ 6,346,457 $ 4,382,827

Solvency ratio (8) / (4e) 2.11 1.46

Market value of assets (end of year)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Supplemental Information 

Supplemental Information to Actuarial Certification for the Plan Year Beginning January 1, 2017 4 

Plasterers Local 82 Pension Plan 

B. Projected Total Contribution Base Units and Contribution Rates 

The following table shows the assumed contribution base units (hours) and contribution rate used to 

produce the Actuarial Certification for the Plan Year Beginning January 1, 2017. 

C. New Entrant Profile 

No assumption was made for new entrants in the Actuarial Certification for the Plan Year Beginning 

January 1, 2018. 

Plan Year Beginning 

January 1

Total Contribution 

Base Units (Hours)

Average Contribution 

Rate (Hourly)

2018 110,000 8.53

2019 110,000 9.03

2020 110,000 10.03

2021 110,000 10.53

2022 110,000 10.53

2023 110,000 10.53

2024 110,000 10.53

2025 110,000 10.53

2026 110,000 10.53

2027 110,000 10.53

2028 110,000 10.53

2029 110,000 10.53

2030 110,000 10.53

2031 110,000 10.53

2032 110,000 10.53

2033 110,000 10.53

2034 110,000 10.53

2035 110,000 10.53

2036 110,000 10.53

2037 110,000 10.53

Exhibit 3 Application Page 32
Milliman Actuarial Certification 

Issued March 2018 

Plasterers Local 82 Pension Fund 

Actuarial Certification of Plan Solvency of Proposed Benefit 

Suspensions as of February 1, 2019 

Prepared by: 

Ladd E. Preppernau, FSA, EA, MAAA 

Principal and Consulting Actuary 

Casey B. Baldwin, FSA, EA, MAAA 

Consulting Actuary 

John Q. Rowland, ASA, MAAA 

Associate Actuary 

Milliman, Inc. 

111 SW Fifth Avenue, Suite 3700 

Portland OR 97204-3654 

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

Exhibit 4 Application Page 33
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 i 

Plasterers Local 82 Pension Fund 

Actuarial Certification of Plan Solvency of Proposed Benefit Suspensions 

as of February 1, 2019 of the Plasterers Local #82 Pension Fund

This Actuarial Certification of Plan Solvency for the Plasterers Local #82 Pension Fund (the “Plan”) has been 

completed in accordance with our understanding of IRC §432(e)(9)(C)(i) (including §1.432(e)(9)-1 and 

Revenue Procedure 2017-43). The results are contained in this report, including a summary of the underlying 

actuarial assumptions. 

Purpose of the Report 

The Plan was certified as “critical and declining” for the plan year beginning January 1, 2018. The Trustees 

have chosen to pursue benefit suspensions which are allowed to such plans under §432. We have completed 

our analysis of the Trustees’ proposed benefit suspensions and determined that the proposed suspensions of 

benefits would likely enable the Plan to avoid insolvency (as defined in IRC §418E) assuming they continue 

indefinitely and occur on February 1, 2019. In addition, we have also completed the analysis required to 

satisfy §432(e)(9)(D)(iv) (taking into account §1.432(e)(9)-1 and Revenue Procedure 2017-43) which requires 

that the proposed suspension does not materially exceed the level necessary to avoid insolvency. 

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. We understand this will be provided to Treasury and 

posted on their website. 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 law. 

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 on our January 1, 2017 Actuarial Valuation, and, without audit, 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 financial information. We found this 

information to be reasonably consistent and comparable with information used for other purposes. The 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 4 Application Page 34

Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 iii 

Plasterers Local 82 Pension Fund 

Table of Contents

A. Summary of Key Information and Results .................................................................................................... 1

B. Development of December 31, 2017 Market Value of Assets ..................................................................... 3

C. Deterministic Projection of Current Plan without Proposed Suspension ...................................................... 4

D. Deterministic Projection of Proposed Suspension ....................................................................................... 5

E. Deterministic Projection of 2.00% Smaller Suspension ............................................................................... 8

F. Projected Total Contribution Base Units and Average Contribution Rates ................................................ 11

G. Actuarial Assumptions ................................................................................................................................ 12

H. Proposed Benefit Suspensions .................................................................................................................. 13

Exhibit 4 Application Page 36
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 1 

Plasterers Local 82 Pension Fund 

A. Summary of Key Information and Results 

The following summary shows the results of the tests required to certify that the proposed suspensions 

meet the requirements set forth by the law. 

1. Key Information 

a. Projected year of insolvency without consideration of proposed 

suspension 

Year Ending 

December 31, 2034 

b. Proposed effective date of suspension of benefits February 1, 2019 

c. End of extended period December 31, 2055 

d. Projected funded percentage (under IRC §432(j)(2)) at end of

extended period 

81.8%* 

e. Number of Plan active participants (based on January 1, 2017

actuarial valuation) 

88 

f. Is the proposed suspension in combination with a partition? No 

* See Exhibit G of report titled: Additional Information for Proposed Benefit Suspensions as of February 1, 2019. 

2. Limitation on Aggregate Size of Suspension 

a. We certifiy that the proposed suspension is reasonably estimated to enable the Plan to avoid 

insolvency. 

i. The solvency ratio is projected on a deterministic basis to be at least 1.0 for each plan year 

throughout the extended period (see Exhibit D). 

ii. The Plan’s solvency ratio and available resources are not projected to decrease at any time 

during the last five years of the extended period (see Exhibit D). 

Based on the results summarized in 2a above, the proposed suspension of benefits 

satisfies that it is reasonably estimated to enable the Plan to avoid insolvency. 

b. We certify that the proposed suspension does not materially exceed the level that is necessary to 

avoid insolvency, as required under regulation §1.432(e)(9)-1(d)(5)(iii)(A). 

i. The Plan would fail one or more of the tests listed in 2a if the dollar amount of the proposed 

benefit suspension for each participant and beneficiary were 2% smaller. Exhibit E 

demonstrates that if the suspension is reduced by “two percent of the amount of the 

participant’s or beneficiary’s periodic payment determined without regard to the reduction 

proposed in the application,” it will no longer be sufficient to enable the Plan to satisfy the 

requirement to avoid insolvency under §1.432(e)(9)-1(d)(5)(i)(A). Exhibit E shows a 20% 

reduction for participants who worked at least 400 hours in 2015 or 2016 and a 29% reduction 

for participants who did not work at least 400 hours in 2016 or 2016; this is two percent smaller 

than the proposed reductions of 22% for participants who worked at least 400 hours in 2015 or 

2016 and a 31% for participants who did not work at least 400 hours in 2016 or 2016. The 

projection in Exhibit E does not satisfy the requirement in §1.432(e)(9)-1(d)(5)(ii)(3) since the 

Plan’s funded percentage at the end of the extended period does not exceed 100% and during 

the last five years of the extended period the Plan’s available resources is projected to 

decrease. Therefore, as specified in §1.432(e)(9)-1(d)(5)(iii)(A) “an alternative, similar but 

Exhibit 4 Application Page 37
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 2 

Plasterers Local 82 Pension Fund 

smaller suspension of benefits would not be sufficient to enable the Plan to satisfy the 

requirement to avoid insolvency under paragraph (d)(5)(i)(A).” Note that it is not necessary to 

specifically test a suspension that is smaller by “five percent of the amount of the reduction in 

the periodic payment” since the regulation allows the use of whichever reduction is greater. 

ii. The PBGC did not issue an order partitioning the Plan. 

Because of the the results in 2b, the proposed suspension of benefits satisfies the 

requirement that the proposed suspension does not materially exceed the level that is 

necessary to avoid insolvency. 

The proposed suspension satisfies the limitations on aggregate size of suspension set forth in 

regulation §1.432(e)(9)-1(d)(5).

Exhibit 4 Application Page 38
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 3 

Plasterers Local 82 Pension Fund 

B. Development of December 31, 2017 Market Value of Assets 

The table below shows the actual change in the market value of assets from January 1, 2017 through 

December 31, 2017: 

1. Market value of assets, January 1, 2017 $ 18,471,135 

2. Employer contributions 1,340,485 

3. Withdrawal liability payments 0 

4. Benefit payments 2,269,592 

5. Administrative expenses 312,561 

6. Investment returns 2,365,019 

7. Market value of assets, December 31, 2017 

(1) + (2) + (3) - (4) - (5) + (6) $ 19,594,486 

 The market value of assets as of January 1, 2017 is based on the Plan’s audited financial statements 

as of December 31, 2016. 

 Employer contributions, benefit payments, and administrative expenses from January 1, 2017 through 

December 31, 2017, and the market value of assets as of as of December 31, 2017, are based on 

unaudited financial statements provided by the Plan administrator. 

Exhibit 4 Application Page 39
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund C. Deterministic Projection of Current Plan without Proposed Suspension 

The table shows the plan-year-by-plan-year market value of assets projection to insolvency. The plan years ending DecemDecember 31, 2034 are shown. 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 2024 

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,817,193 $ 18,131,371 $ 17,464,448 $ 16,763,671 $ 15,960,690 $ 15,078,6

2. Employer contributions 938,300 993,300 1,103,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 2,117,621 2,079,036 2,028,979 1,979,233 1,906,741 1,853,6

b. Terminated vested participants 180,532 226,631 263,657 300,015 339,545 374,482 412,0

c. Current actives 126,351 188,291 239,075 299,298 365,468 430,292 487,8

d. New entrants - - - - - 319 1,1

e. Total 2,467,039 2,532,542 2,581,768 2,628,291 2,684,246 2,711,834 2,754,6

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 221,9

6. Investment returns 1,101,446 1,059,466 9 1,020,680 81,487 938,421 8 890,149 36,7

7. $ 18,817,193 $ 18,131,371 $ 17,464,448 $ 16,763,671 $ 15,960,690 $ 15,078,616 $ 14,097,0

8. $ 21,284,232 $ 20,663,914 $ 20,046,216 $ 19,391,962 $ 18,644,935 $ 17,790,450 $ 16,851,7

Solvency ratio (8) / (4e) 8.63 8.16 7.76 7.38 6.95 6.56 6.

Plan year beginning January 1 2027 2028 2029 2030 2031 2032 2033 

1. Market value of assets (beginning of year) 11,784,909 $ $ 10,492,619 $ 9,183,512 $ 7,770,026 $ 6,247,388 $ 4,631,325 $ 2,918,0

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 1,683,132 1,625,115 1,565,956 1,505,677 1,444,308 1,375,974 1,311,9

b. Terminated vested participants 539,035 573,824 603,578 635,050 652,966 672,745 687,8

c. Current actives 629,257 661,988 699,825 734,320 760,430 788,692 818,8

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 37,3

e. Total 2,857,631 2,870,626 2,883,228 2,893,629 2,881,671 2,867,296 2,855,9

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 253,7

6. Investment returns 639,149 638,808 4 550,566 55,402 353,659 1 245,735 

31,1

7. $ 10,492,619 $ 9,183,512 $ 7,770,026 $ 6,247,388 $ 4,631,325 $ 2,918,018 $ 1,097,8

8. $ 13,350,250 $ 12,054,137 $ 10,653,254 $ 9,141,017 $ 7,512,996 $ 5,785,314 $ 3,953,7

Solvency ratio (8) / (4e) 4.67 4.20 3.69 3.16 2.61 2.02 1.

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund D. Deterministic Projection of Proposed Suspension 

The table shows the plan-year-by-plan-year market value of assets projection to avoid insolvency. The plan years ending D

December 31, 2055 are shown. 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 202

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,817,193 $ 18,611,893 $ 18,518,134 $ 18,439,220 $ 18,314,361 $ 18,1

2. Employer contributions 938,300 993,300 1,103,300 1,158,300 1,158,300 1,158,300 1,1

3. Withdrawal liability payments 0 0 0 0 0 0 4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 1,740,916 1,665,527 1,620,506 1,575,609 1,515,004 1,4

b. Terminated vested participants 180,532 171,340 192,827 219,570 248,162 273,820 3

c. Current actives 126,351 153,343 193,994 244,335 297,576 348,473 3d. New entrants - - - - - 319 

e. Total 2,467,039 2,065,599 2,052,347 2,084,411 2,121,348 2,137,617 2,1

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 26. Investment returns 1,101,446 1 1,073,044 ,064,425 1,059,469 1,053,646 1,045,713 1,0

7. $ 18,611,893 18,817,193 $ 18,518,134 $ 18,439,220 $ 18,314,361 $ 18,162,068 $ 17,9

$ 

8. $ 20,677,492 21,284,232 $ 20,570,482 $ 20,523,631 $ 20,435,709 $ 20,299,685 $ 20,1

$ 

Solvency ratio (8) / (4e) 8.63 10.01 10.02 9.85 9.63 9.50 

 

Plan year beginning January 1 2027 2028 2029 2030 2031 2032 203

1. Market value of assets (beginning of year) 17,424,879 $ 17,112,374 $ 16,898,246 $ 16,664,516 $ 16,404,666 $ 16,135,362 $ 15,8

$ 

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,1

 

3. Withdrawal liability payments 0 0 0 0 0 0 

 

4. Benefit payments

a. Current retirees and beneficiaries 1,318,657 1,268,745 1,218,339 1,167,494 1,116,263 1,060,091 1,0

 

b. Terminated vested participants 394,073 418,980 440,691 462,576 475,289 488,768 4

 

c. Current actives 509,949 542,530 568,608 599,397 621,187 644,983 6

 

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 

e. Total 2,228,886 2,239,955 2,241,508 2,248,048 2,236,706 2,223,727 2,2

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 2

6. Investment returns 990,189 1 1,103,117 ,088,602 1,072,609 1,055,453 1,037,715 1,0

7. $ 16,898,246 17,112,374 $ 16,664,516 $ 16,404,666 $ 16,135,362 $ 15,857,603 $ 15,5

$ 

8. $ 19,138,201 19,341,260 $ 18,906,024 $ 18,652,715 $ 18,372,068 $ 18,081,331 $ 17,7

$ 

Solvency ratio (8) / (4e) 8.68 8.54 8.43 8.30 8.21 8.13 

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2036 2037 2038 2039 2040 2041 2042 

1. Market value of assets (beginning of year) 14,980,295 $ $ 14,673,205 $ 14,365,972 $ 14,054,403 $ 13,744,756 $ 13,444,745 $ 13,160,5

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 849,664 796,762 743,900 691,208 638,872 587,136 536,2

b. Terminated vested participants 527,652 529,985 532,182 530,965 526,315 519,840 511,7

c. Current actives 721,341 738,509 757,521 772,279 781,793 785,882 781,0

d. New entrants 63,203 72,842 84,725 97,705 111,600 126,685 142,4

e. Total 2,161,859 2,138,098 2,118,327 2,092,157 2,058,580 2,019,544 1,971,6

5. Administrative expenses 265,390 269,371 273,412 277,513 281,675 285,901 290,1

6. Investment returns 961,859 941,936 921,870 901,722 881,945 862,992 845,3

7. $ 14,365,972 14,673,205 $ 14,054,403 $ $ 13,744,756 $ 13,444,745 $ 13,160,593 $ 12,902,4

8. $ 16,835,064 $ 16,504,070 $ 16,172,730 $ 15,836,912 $ 15,503,325 $ 15,180,137 $ 14,874,0

Solvency ratio (8) / (4e) 7.79 7.72 7.63 7.57 7.53 7.52 7.

Plan year beginning January 1 2045 2046 2047 2048 2049 2050 2051 

1. Market value of assets (beginning of year) 12,470,937 $ $ 12,305,501 $ 12,176,813 $ 12,084,968 $ 12,032,123 $ 12,020,625 $ 12,053,5

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 392,199 348,018 306,257 267,191 231,046 197,972 168,0

b. Terminated vested participants 482,832 471,250 459,096 445,611 431,492 415,444 398,7

c. Current actives 752,128 737,963 723,972 707,949 689,632 669,725 648,6

d. New entrants 196,749 215,818 235,090 255,261 275,628 296,084 316,7

e. Total 1,823,908 1,773,049 1,724,416 1,676,012 1,627,799 1,579,226 1,532,2

5. Administrative expenses 303,444 307,996 312,616 317,305 322,065 326,896 331,7

6. Investment returns 803,616 794,058 786,886 782,173 780,065 780,736 784,3

7. $ 12,176,813 12,305,501 $ 12,084,968 $ $ 12,032,123 $ 12,020,625 $ 12,053,539 $ 12,132,1

8. $ 14,129,408 $ 13,949,862 $ 13,809,383 $ 13,708,136 $ 13,648,423 $ 13,632,765 $ 13,664,3

Solvency ratio (8) / (4e) 7.75 7.87 8.01 8.18 8.38 8.63 8.

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2054 2055

1. Market value of assets (beginning of year) 12,430,885 $ $ 12,652,775

2. Employer contributions 1,158,300 1,158,300

3. Withdrawal liability payments 0 04. Benefit payments

a. Current retirees and beneficiaries 97,057 79,297

b. Terminated vested participants 345,020 326,344

c. Current actives 578,706 554,300

d. New entrants 382,047 404,953

e. Total 1,402,831 1,364,894

5. Administrative expenses 346,955 352,1606. Investment returns 813,376 829,321

7. $ 12,923,342 12,652,775 $ 8. $ 14,288,237 14,055,606 $ 

Solvency ratio (8) / (4e) 10.02 10.47Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund E. Deterministic Projection of 2.00% Smaller Suspension 

The table shows the plan-year-by-plan-year market value of assets projection to insolvency. The plan years ending DecemDecember 31, 2055 are shown. 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 2024 

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,817,193 $ 18,580,798 $ 18,449,417 $ 18,329,242 $ 18,159,157 $ 17,958,02. Employer contributions 938,300 993,300 1,103,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 1,764,635 1,691,561 1,646,210 1,600,996 1,539,621 1,491,9

b. Terminated vested participants 180,532 174,542 196,954 224,283 253,536 279,771 308,3c. Current actives 126,351 156,638 198,610 250,072 304,459 356,451 405,0d. New entrants - - - - - 319 1,1

e. Total 2,467,039 2,095,815 2,087,125 2,120,565 2,158,991 2,176,162 2,206,4

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 221,96. Investment returns 1,101,446 1,072,165 1,061,579 1,054,363 1,046,063 1,035,435 1,022,5

7. $ 18,580,798 18,817,193 $ 18,449,417 $ 18,329,242 $ 18,159,157 $ 17,958,042 $ 17,710,5

$ 

8. $ 20,676,613 21,284,232 $ 20,536,541 $ 20,449,807 $ 20,318,148 $ 20,134,203 $ 19,916,9

$ 

Solvency ratio (8) / (4e) 8.63 9.87 9.84 9.64 9.41 9.25 9.

 

Plan year beginning January 1 2027 2028 2029 2030 2031 2032 2033 

1. Market value of assets (beginning of year) 17,047,630 $ 16,668,483 $ 16,379,268 $ 16,064,965 $ 15,718,728 $ 15,357,203 $ 14,981,0

$ 

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

 

3. Withdrawal liability payments 0 0 0 0 0 0 

 

4. Benefit payments

a. Current retirees and beneficiaries 1,341,535 1,291,107 1,240,146 1,188,705 1,136,836 1,079,864 1,026,8

 

b. Terminated vested participants 403,044 428,581 450,817 473,241 486,288 500,144 511,1

 

c. Current actives 521,231 554,466 581,017 612,264 634,401 658,585 681,1

 

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 37,3

e. Total 2,272,016 2,283,854 2,285,850 2,292,791 2,281,492 2,268,479 2,256,5

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 253,7

6. Investment returns 966,677 1,071,929 1,052,370 1,030,964 1,008,019 984,104 959,1

7. $ 16,379,268 16,668,483 $ 16,064,965 $ 15,718,728 $ 15,357,203 $ 14,981,082 $ 14,588,2

$ 

8. $ 18,663,122 18,940,499 $ 18,350,815 $ 18,011,518 $ 17,638,695 $ 17,249,561 $ 16,844,7

$ 

Solvency ratio (8) / (4e) 8.34 8.17 8.03 7.86 7.73 7.60 7.

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2036 2037 2038 2039 2040 2041 2042 

1. Market value of assets (beginning of year) 13,768,805 $ $ 13,335,606 $ 12,894,474 $ 12,440,689 $ 11,980,171 $ 11,520,239 $ 11,066,6

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 866,238 812,439 758,647 705,000 651,690 598,968 547,1

b. Terminated vested participants 540,196 542,639 544,924 543,700 538,960 532,346 524,0

c. Current actives 735,727 753,044 772,265 787,140 796,694 800,777 795,8

d. New entrants 63,203 72,842 84,725 97,705 111,600 126,685 142,4

e. Total 2,205,364 2,180,964 2,160,562 2,133,545 2,098,944 2,058,776 2,009,4

5. Administrative expenses 265,390 269,371 273,412 277,513 281,675 285,901 290,1

6. Investment returns 879,255 850,904 821,888 792,239 762,388 732,757 703,8

7. $ 12,894,474 13,335,606 $ 12,440,689 $ 11,980,171 $ 11,520,239 $ 11,066,620 $ 10,629,0

$ 

8. $ 15,540,970 $ 15,075,439 $ 14,601,251 $ 14,113,715 $ 13,619,183 $ 13,125,395 $ 12,638,5

Solvency ratio (8) / (4e) 7.05 6.91 6.76 6.62 6.49 6.38 6.

Plan year beginning January 1 2045 2046 2047 2048 2049 2050 2051 

1. Market value of assets (beginning of year) 9,806,372 $ $ 9,427,883 $ 9,073,456 $ 8,742,331 $ 8,435,750 $ 8,155,068 $ 7,902,3

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 400,166 355,085 312,469 272,599 235,708 201,949 171,4

b. Terminated vested participants 494,413 482,547 470,096 456,290 441,834 425,407 408,3

c. Current actives 766,005 751,486 737,115 720,691 701,954 681,592 660,0

d. New entrants 196,749 215,818 235,090 255,261 275,628 296,084 316,7

e. Total 1,857,333 1,804,936 1,754,770 1,704,841 1,655,124 1,605,033 1,556,5

5. Administrative expenses 303,444 307,996 312,616 317,305 322,065 326,896 331,7

6. Investment returns 623,988 600,206 577,961 557,266 538,207 520,893 505,3

7. $ 9,073,456 9,427,883 $ 8,742,331 $ 8,435,750 $ 8,155,068 $ 7,902,332 $ 7,677,7

$ 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)
Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2054 2055

1. Market value of assets (beginning of year) 7,312,219 $ $ 7,170,4652. Employer contributions 1,158,300 1,158,300

3. Withdrawal liability payments 0 04. Benefit payments

a. Current retirees and beneficiaries 98,946 80,821

b. Terminated vested participants 353,319 334,199

c. Current actives 588,553 563,603d. New entrants 382,047 404,953

e. Total 1,422,865 1,383,577

5. Administrative expenses 346,955 352,1606. Investment returns 469,765 461,391

7. $ 7,054,419 7,170,465 $ 8. $ 8,437,996 8,593,329 $ 

Solvency ratio (8) / (4e) 6.04 6.10

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)


Milliman Actuarial Certification 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 13 

Plasterers Local 82 Pension Fund 

H. Proposed Benefit Suspensions 

The application filed on behalf of the Plasterers Local #82 Pension Fund sets forth the following proposed 

benefit suspension to be effective February 1, 2019. The suspension is expected to continue indefinitely. 

This application proposes that, for participants who worked at least 400 covered hours in 2015 or 2016, 

22% of the participant’s benefit earned as of January 1, 2017 be suspended, and for all other participants 

and beneficiaries, 31% of the benefit earned as of January 1, 2017 be suspended. In addition, 

participants who are covered by a participating annuity contract with Principal Financial Group will not be 

suspended, as the terms of that contract do not allow a reduction in the benefit amount. 

Finally, the proposed suspension does also provides for different treatment of participants and 

beneficiaries as a result of the application of the individual limitations of §432(e)(9)(D)(i), (ii) and (iii), 

which are summarized below: 

 §432(e)(9)(D)(i) – No suspension will result in reducing a participant’s or beneficiary’s benefit below 

110% of the PBGC guaranteed benefit. 

 §432(e)(9)(D)(ii) –No suspensions can be made for participants and beneficiaries above the age of 80 

as of the end of the month of the effective date of the suspension (February 28, 2019). The 

suspension is reduced by a factor for participants and beneficiaries above the age of 75 but younger 

than 80 as of the end of the month of the effective date of the suspension. The factor is calculated by 

determining how many months the participant or beneficiary has until age 80 (as of the end of the 

month of the effective date of the suspension) and dividing that amount by 60. 

 §432(e)(9)(D)(iii) – No benefits based on disability can be suspended. 

Exhibit 4 Application Page 49
Exhibit 5 

Pension Contribution Rates of Various OPCMIA Locals 

Local 72 Cement Masons / Plasterers – Spokane, WA 

On benefit  off benefit  total 

$2.15    $3.89    $6.04 

Local 478 Cement Masons / Plasterers – Richland, WA 

On benefit  off benefit  total 

$2.15    $3.89    $6.04 

Local 555 Cement Masons – Portland, OR 

On benefit  off benefit  total 

$6.48    $2.83    $9.31 

Local 633 Cement Masons – Minnesota, North Dakota, NW Wisconsin

On benefit  off benefit  total 

$8.02    $1.85    $9.87 

Local 630 Cement Masons / Plasterers ‐ Hawaii 

DB    DC    total 

$6.10    $5.70    $11.80 

Local 528 Cement Masons / Plasterers – Alaska  

On benefit  off benefit  total 

$6.50    $5.30    $11.80 

Local 528 Cement Masons – Washington  

On benefit   off benefit  DC    total 

$4.22    $1.51    $2.37    $8.10 

Local 528 Plasterers – Washington  

On benefit  off benefit  DC    total 

$3.91    $1.41    $2.50    $7.82 

Local 265 Plasterers – Minnesota 

Defined contribution 

$9.55 

   

Application Page 50
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #1, Guarantee Based Limitation - Retiree

Demographic Information

1. Date of birth 07/14/1949

2. Age at end of month that includes suspension date (February 28, 2019) 69 years 7 months

3. Monthly benefit as of January 1, 2017 893.80

4. Monthly benefit as of February 1, 2019* 893.80

5. Total years of credited service* 22.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension Single Life Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 40.63

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 33.23

10. PBGC guaranteed benefit [(5) x (9)] 731.06

11. 110% of PBGC guaranteed benefit [(10) x 110%] 804.17

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 277.08

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 89.63

15. Is 110% of PBGC guarantee restriction applicable? yes

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** 10.0%

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 89.38

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 89.38

Final Amount under Proposed Suspension [(4) - (20)] 804.42

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

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

4:23 PM

3/23/2018

Exhibit 6 Application Page 51
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #2, Guarantee Based Limitation - Contingent Beneficiary 

Demographic Information

1. Date of birth 05/14/1949

2. Age at end of month that includes suspension date (February 28, 2019) 69 years 9 months

3. Current monthly benefit 2,619.47

4. Monthly benefit as of February 1, 2019* 2,619.47

5. Total years of credited service* 27.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension 50% Joint & Survivor Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 97.02

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 965.25

11. 110% of PBGC guaranteed benefit [(10) x 110%] 1,061.78

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 812.04

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,557.69

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 812.04

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 812.04

Final Amount under Proposed Suspension [(4) - (20)] 1,807.43

Survivor Benefit and PBGC Guarantee

21. Surivivor Benefit (50% Joint & Survivor) 1,309.74

22. Plan implied accrual rate [(21) / (5)] 48.51

23. PBGC guaranteed accrual rate [100% of first $11 of (22) + 75% of (22) between $11 and $44]* 35.75

24. PBGC guaranteed benefit [(5) x (23)] 965.25

25. 110% of PBGC guaranteed benefit [(24) x 110%] 1,061.78

Calculation of Proposed Suspension

26. Proposed suspension factor 31%

27. Initial proposed benefit suspension [(21) x (26)] 406.02

28. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(21) - (25)] 247.96

29. Is 110% of PBGC guarantee restriction applicable? yes

30. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(28) / (21)]** 18.9%

31. Maximum suspendable benefit [minimum of (21) x (30) and (27)] 247.54 

32. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

33. Applicable percentage for age based limitation [(18) / 60] 100.00%

34. Final proposed benefit suspension [(31) x (33)] 247.54 

Final Survivor Amount under Proposed Suspension [(21) - (34)] 1,062.20 

35. New Survivor Percentage [ 1,062.20 / 1,807.43] 58.77%

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

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

Exhibit 6 Application Page 52
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #3, Guarantee Based Limitation - Future Retiree - With 400 hours in 2015 or 2016

Demographic Information

1. Date of birth 07/18/1977

2. Age at end of month that includes suspension date (February 28, 2019) 41 years 7 months

3. Monthly benefit as of January 1, 2017 336.65

4. Normal Retirement Benefit as of February 1, 2019* 462.81

5. Total years of credited service* 10.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Active

7. Form of payment for pension Not Retired

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 46.28

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 357.50

11. 110% of PBGC guaranteed benefit [(10) x 110%] 393.25

Calculation of Proposed Suspension

12. Proposed suspension factor 22%

13. Initial proposed benefit suspension [(4) x (12)] 101.82

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 69.56

15. Is 110% of PBGC guarantee restriction applicable? yes

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** 15.0%

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 69.42

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 69.42

Final Amount under Proposed Suspension as of January 1, 2017 [(3) - (20)] 393.39

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

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

9:37 AM

3/25/2018

Exhibit 6 Application Page 53
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #4, Guarantee Based Limitation - Vested Terminated Employee

Demographic Information

1. Date of birth 12/14/1984

2. Age at end of month that includes suspension date (February 28, 2019) 34 years 2 months

3. Monthly benefit as of January 1, 2017 243.16

4. Normal Retirement Benefit as of February 1, 2019* 243.16

5. Total years of credited service* 5.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Terminated Vested

7. Form of payment for pension Not Retired

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 48.63

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 178.75

11. 110% of PBGC guaranteed benefit [(10) x 110%] 196.63

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 75.38

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 46.53

15. Is 110% of PBGC guarantee restriction applicable? yes

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** 19.1%

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 46.44

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 46.44

Final Amount under Proposed Suspension [(4) - (20)] 196.72

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

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

4:24 PM

3/23/2018

Exhibit 6 Application Page 54
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #5, Disability Based Limit: Participant Receiving Temporary Benefit (50% of Accrued Benefit)

Demographic Information

1. Date of birth 10/09/1957

2. Age at end of month that includes suspension date (February 28, 2019) 61 years 4 months

3. Temporary disability benefit (payable prior to normal retirement) 933.27

4. Total Accrued Benefit (payable at normal retirement)* 1,866.54

5. Total years of credited service* 15.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Disability

7. Form of payment for pension Single Life Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 124.44

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 536.25

11. 110% of PBGC guaranteed benefit [(10) x 110%] 589.88

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 578.63

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,276.66

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 578.63

18. Months from age 80 (at suspension date) n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 578.63

Final Amount under Proposed Suspension [Max ( (3), (4) - (20))] 1,287.91

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

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

9:19 AM

3/25/2018

Exhibit 6 Application Page 55
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #6, Disability Based Limit: Participant Receiving Temporary Benefit (100% of Accrued Benefit)

Demographic Information

1. Date of birth 05/17/1958

2. Age at end of month that includes suspension date (February 28, 2019) 60 years 9 months

3. Temporary disability benefit (payable prior to normal retirement) 2,408.38

4. Total Accrued Benefit (payable at normal retirement)* 2,408.38

5. Total years of credited service* 15.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Disability

7. Form of payment for pension Single Life Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 160.56

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 536.25

11. 110% of PBGC guaranteed benefit [(10) x 110%] 589.88

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 746.60

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,818.50

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 746.60

18. Months from age 80 (at suspension date), also zero if benefit is due to 100% disability 0

19. Applicable percentage for age based limitation [(18) / 60] 0.00%

20. Final proposed benefit suspension [(17) x (19)] -

Final Amount under Proposed Suspension [Max ( (3), (4) - (20))] 2,408.38

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

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

9:23 AM

3/25/2018

Exhibit 6 Application Page 56
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #7, Disability Based Limit: Disabled Retiree Past Normal Retirement Age 

Demographic Information

1. Date of birth 05/11/1953

2. Age at end of month that includes suspension date (February 28, 2019) 65 years 9 months

3. Monthly benefit as of January 1, 2017 1,966.46

4. Monthly benefit as of February 1, 2019* 1,966.46

5. Total years of credited service* 14.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Disability

7. Form of payment for pension Single Life Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 140.46

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 500.50

11. 110% of PBGC guaranteed benefit [(10) x 110%] 550.55

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 609.60

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,415.91

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 609.60

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

19. Applicable percentage for age based limitation [(18) / 60] 0.00%

20. Final proposed benefit suspension [(17) x (19)] -

Final Amount under Proposed Suspension [(4) - (20)] 1,966.46

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

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

9:28 AM

3/25/2018

Exhibit 6 Application Page 57
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #8, Disability Based Limit: Contingent Beneficiary

Demographic Information

1. Date of birth 06/09/1949

2. Age at end of month that includes suspension date (February 28, 2019) 69 years 8 months

3. Monthly benefit as of January 1, 2017 3,619.08

4. Survivor Benefit Payable to Spouse after Participant's Death 2,714.31

5. Total years of credited service* 35.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Contingent Beneficiary

7. Form of payment for pension 75% Joint & Survivor Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 77.55

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 1,251.25

11. 110% of PBGC guaranteed benefit [(10) x 110%] 1,376.38

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 841.44

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,337.93

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 841.44

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 841.44

Final Amount under Proposed Suspension [(4) - (20)] 1,872.87

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

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

G:\DBUSER\PPP\MPRA Suspensions\Benefit Suspensions Examples.xlsx

Benefit examples #8

4:41 PM

3/30/2018

Application Page 58
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #9, Age Based Limitation - No Guarantee Based Limitation - Retiree over age 80

Demographic Information

1. Date of birth 06/19/1929

2. Age at end of month that includes suspension date (February 28, 2019) 89 years 8 months

3. Monthly benefit as of January 1, 2017 1,486.43

4. Monthly benefit as of February 1, 2019* 1,486.43

5. Total years of credited service* 10.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension Single Life Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 148.64

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 357.50

11. 110% of PBGC guaranteed benefit [(10) x 110%] 393.25

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 460.79

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,093.18

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 460.79

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

19. Applicable percentage for age based limitation [(18) / 60] 0.00%

20. Final proposed benefit suspension [(17) x (19)] -

Final Amount under Proposed Suspension [(4) - (20)] 1,486.43

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

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

4:30 PM

3/23/2018

Exhibit 6 Application Page 59
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #10, Age Based Limitation - No Guarantee Based Limitation - Retiree between age 75 and 80

Demographic Information

1. Date of birth 03/28/1943

2. Age at end of month that includes suspension date (February 28, 2019) 75 years 11 months

3. Monthly benefit as of January 1, 2017 2,645.67

4. Monthly benefit as of February 1, 2019* 2,645.67

5. Total years of credited service* 40.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension 100% Joint & Survivor Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 66.14

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 1,430.00

11. 110% of PBGC guaranteed benefit [(10) x 110%] 1,573.00

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 820.16

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 1,072.67

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 820.16

18. Months from age 80 (at suspension date), also zero if benefit is due to disability 49

19. Applicable percentage for age based limitation [(18) / 60] 81.67%

20. Final proposed benefit suspension [(17) x (19)] 669.80

Final Amount under Proposed Suspension [(4) - (20)] 1,975.87

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

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

4:30 PM

3/23/2018

Exhibit 6 Application Page 60
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #11, Age Based Limitation and Guarantee Based Limitation - Retiree between 75 and 79

Demographic Information

1. Date of birth 04/28/1941

2. Age at end of month that includes suspension date (February 28, 2019) 77 years 10 months

3. Monthly benefit as of January 1, 2017 93.57

4. Monthly benefit as of February 1, 2019* 93.57

5. Total years of credited service* 16.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension 100% Joint & Survivor Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 5.85

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 5.85

10. PBGC guaranteed benefit [(5) x (9)] 93.60

11. 110% of PBGC guaranteed benefit [(10) x 110%] 102.96

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 29.01

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] -

15. Is 110% of PBGC guarantee restriction applicable? yes

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** 0.0%

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] -

18. Months from age 80 (at suspension date), also zero if benefit is due to disability 26

19. Applicable percentage for age based limitation [(18) / 60] 43.33%

20. Final proposed benefit suspension [(17) x (19)] -

Final Amount under Proposed Suspension [(4) - (20)] 93.57

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

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

4:31 PM

3/23/2018

Exhibit 6 Application Page 61
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #12, No Suspension Limitations - Active under age 75 - With 400 hours in 2015 or 2016

Demographic Information

1. Date of birth 09/05/1956

2. Age at end of month that includes suspension date (February 28, 2019) 62 years 5 months

3. Monthly benefit as of January 1, 2017 5,697.76

4. Normal Retirement Benefit as of February 1, 2019* 5,823.92

5. Total years of credited service* 40.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Active

7. Form of payment for pension Not Retired

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 145.60

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 1,430.00

11. 110% of PBGC guaranteed benefit [(10) x 110%] 1,573.00

Calculation of Proposed Suspension

12. Proposed suspension factor 22%

13. Initial proposed benefit suspension [(4) x (12)] 1,281.26

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 4,250.92

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 1,281.26

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 1,281.26

Final Amount under Proposed Suspension as of January 1, 2017 [(3) - (20)] 4,542.66

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

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

9:41 AM

3/25/2018

Exhibit 6 Application Page 62
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #13, No Suspension Limitations - Retiree less than 75 with 400 hours in 2015 or 2016

Demographic Information

1. Date of birth 03/23/1954

2. Age at end of month that includes suspension date (February 28, 2019) 64 years 11 months

3. Monthly benefit as of January 1, 2017 3,979.74

4. Monthly benefit as of February 1, 2019* 3,979.74

5. Total years of credited service* 35.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension 100% Joint & Survivor

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 113.71

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 1,251.25

11. 110% of PBGC guaranteed benefit [(10) x 110%] 1,376.38

Calculation of Proposed Suspension

12. Proposed suspension factor 22%

13. Initial proposed benefit suspension [(4) x (12)] 875.54

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 2,603.36

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 875.54

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 875.54

Final Amount under Proposed Suspension [(4) - (20)] 3,104.20

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

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

4:34 PM

3/23/2018

Exhibit 6 Application Page 63
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #14, No Suspension Limitations - Retiree less than 75

Demographic Information

1. Date of birth 03/21/1954

2. Age at end of month that includes suspension date (February 28, 2019) 64 years 11 months

3. Monthly benefit as of January 1, 2017 3,782.97

4. Monthly benefit as of February 1, 2019* 3,782.97

5. Total years of credited service* 32.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Retiree

7. Form of payment for pension 100% Joint & Survivor Annuity

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 118.22

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 1,144.00

11. 110% of PBGC guaranteed benefit [(10) x 110%] 1,258.40

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 1,172.72

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 2,524.57

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 1,172.72

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 1,172.72

Final Amount under Proposed Suspension [(4) - (20)] 2,610.25

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

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

4:34 PM

3/23/2018

Exhibit 6 Application Page 64
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #15, No Suspension Limitations - Vested Terminated Employee less than 75

Demographic Information

1. Date of birth 05/02/1968

2. Age at end of month that includes suspension date (February 28, 2019) 50 years 9 months

3. Monthly benefit as of January 1, 2017 4,178.37

4. Normal Retirement Benefit as of February 1, 2019* 4,178.37

5. Total years of credited service* 23.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Terminated Vested

7. Form of payment for pension Not Retired

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 181.67

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 822.25

11. 110% of PBGC guaranteed benefit [(10) x 110%] 904.48

Calculation of Proposed Suspension

12. Proposed suspension factor 31%

13. Initial proposed benefit suspension [(4) x (12)] 1,295.29

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 3,273.89

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 1,295.29

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 1,295.29

Final Amount under Proposed Suspension [(4) - (20)] 2,883.08

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

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

4:35 PM

3/23/2018

Exhibit 6 Application Page 65
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #16, No Suspension Limitations - Vested Terminated Employee less than 75 with 400 hours in 2015 or 2016

Demographic Information

1. Date of birth 07/08/1986

2. Age at end of month that includes suspension date (February 28, 2019) 32 years 7 months

3. Monthly benefit as of January 1, 2017 937.77

4. Normal Retirement Benefit as of February 1, 2019* 937.77

5. Total years of credited service* 12.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Terminated Vested

7. Form of payment for pension Not Retired

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 78.15

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 429.00

11. 110% of PBGC guaranteed benefit [(10) x 110%] 471.90

Calculation of Proposed Suspension

12. Proposed suspension factor 22%

13. Initial proposed benefit suspension [(4) x (12)] 206.31

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 465.87

15. Is 110% of PBGC guarantee restriction applicable? no

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** n/a

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 206.31

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 206.31

Final Amount under Proposed Suspension [(4) - (20)] 731.46

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

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

4:35 PM

3/23/2018

Exhibit 6 Application Page 66
Plasterers Local 82 Pension Fund

Application for benefit suspension

Demonstration that limitations on individual suspension are satisfied

Example #17, Active Participant over Normal Retirement Age with 400 hours in 2015 or 2016

Demographic Information

1. Date of birth 01/31/1950

2. Age at end of month that includes suspension date (February 28, 2019) 69 years 0 months

3. Monthly benefit as of January 1, 2017 497.91

4. Normal Retirement Benefit as of February 1, 2019* 624.07

5. Total years of credited service* 14.00

6. Type of participant (retiree, active, terminated vested, beneficiary, disability) Active

7. Form of payment for pension Not Retired

Calculation of PBGC Guarantee

8. Plan implied accrual rate [(4) / (5)] 44.58

9. PBGC guaranteed accrual rate [100% of first $11 of (8) + 75% of (8) between $11 and $44]* 35.75

10. PBGC guaranteed benefit [(5) x (9)] 500.50

11. 110% of PBGC guaranteed benefit [(10) x 110%] 550.55

Calculation of Proposed Suspension

12. Proposed suspension factor 22%

13. Initial proposed benefit suspension [(4) x (12)] 137.30

14. Maximum suspension allowed under the 110% of PBGC guarantee restriction [(4) - (11)] 73.52

15. Is 110% of PBGC guarantee restriction applicable? yes

16. Proposed suspension factor reflecting the 110% of PBGC guarantee restriction [(14) / (4)]** 11.7%

17. Maximum suspendable benefit [minimum of (4) x (16) and (13)] 73.02

18. Months from age 80 (at suspension date), also zero if benefit is due to disability n/a

19. Applicable percentage for age based limitation [(18) / 60] 100.00%

20. Final proposed benefit suspension [(17) x (19)] 73.02

Final Amount under Proposed Suspension as of January 1, 2017 [(3) - (20)] 551.05

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

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

9:43 AM

3/25/2018

Exhibit 6 Application Page 67
Plasterers Local #82 Pension FundDemonstration of distribution of benefit suspensions

Effect of the Suspensions

Plan in Aggregate Worked at Least 400 Hours in 2015 or 2016 Work

Hou

Counts

Participant 289 98 

Beneficiary 23 - 

Alternate Payee - 5 

Total 317 98 

Average pre-suspension benefit $1,240 $1,299 Average post-suspension benefit $964 $1,014 Average reduction 22% 22% Reduction to present value of accrued benefits as of 1/1/17 $8,510,000 $2,090,000 

Distribution of the Suspensions

Reduction Plan in Aggregate Worked at Least 400 Hours in 2015 or 2016 Work

Hou

No Reduction 59 - 

0-5.00% 9 - 

5.01-10.00% 26 2 

10.01-15.00% 8 1 

15.01-20.00% 6 1 

20.01-25.00% 98 94 

25.01-30.00% 5 - 

30.01-35.00% - 106 

 98 317 

G:\DBUSER\PPP\MPRA Suspensions\Benefit Suspensions_New.xlsx
Exhibit 9 

{00763239}

Plasterers Local 82 Pension Fund 

List of Contributing Employers 

 Applied Restoration Inc 

 Billings and Cronn 

 Bridgeway Construction 

 Cascade Acoustics and Supply 

 Fred Shearer and Sons 

 Harlen’s Drywall Co., Inc. 

 Harver Company 

 Insulpro Projects 

 Interior Exterior Specialists 

 L.P. Company 

 National Plastering Industry’s JATF 

 Norkote, Inc. 

 NW Wall Systems, Inc 

 Performance Contracting 

 Plasterers Apprenticeship 

 Plasterers Union Local #82 

 Western Partitions, Inc. 

Application Page 69
Milliman Additional Information 

Issued March 2018 

Plasterers Local 82 Pension Plan 

Additional Information for Proposed Benefit Suspensions as of 

February 1, 2019 

Prepared by: 

Ladd E. Preppernau, FSA, EA, MAAA 

Principal and Consulting Actuary 

Casey B. Baldwin, FSA, EA, MAAA 

Consulting Actuary 

John Q. Rowland, ASA, MAAA 

Associate Actuary 

Milliman, Inc. 

111 SW Fifth Avenue, Suite 3700 

Portland OR 97204-3654

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

Exhibit 10 Application Page 70
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 1 

Plasterers Local 82 Pension Fund 

Additional Information for Proposed Benefit Suspensions as of February 

1, 2019 of the Plasterers Local 82 Pension Plan 

This report for the Plasterers Local 82 Pension (the “Plan”) has been completed in accordance with our 

understanding of IRC §432(e)(9)(C)(i) (including §1.432(e)(9)-1 and Revenue Procedure 2017-43). The 

additional information required for the application to suspended benefits is contained in this report. 

Purpose of the Report 

The Plan was certified as “critical and declining” for the plan year beginning January 1, 2017 and the plan 

year beginning January 1, 2018. The Trustees have chosen to pursue benefit suspensions which are allowed 

for such plans under §432. This report includes additional information required for the application to 

suspended benefits. Specifically, this report contains the materials required in checklist items 26, 27 and 28 

included in Revenue Procedure 2017-43. 

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. We understand this will be provided to Treasury and 

posted on their website. 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 law. 

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 on our January 1, 2017 Actuarial Valuation, our Actuarial Certification of 

Plan Solvency of Proposed Benefit Suspensions as of January 1, 2018, and, without audit, 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 financial information. We found this 

information to be reasonably consistent and comparable with information used for other purposes. The 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. 

Limited Use 

Actuarial computations presented here were prepared to meet the requirement set forth in IRC §432(e)(9) 

(taking into account §1.432(e)(9)-1 and Revenue Procedure 2017-43). 

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 

Exhibit 10 Application Page 71

Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 3 

Plasterers Local 82 Pension Fund 

Table of Contents

A. Past Experience with Certain Critical Assumptions ...................................................................................... 1

B. Development of December 31, 2017 Market Value of Assets ..................................................................... 2

C. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than Used in 

the Actuarial Certification of Solvency ............................................................................................................... 3

D. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than Used in 

the Actuarial Certification of Solvency ............................................................................................................... 5

E. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the Same Trend 

as the Plan Experienced Over the Last 10 Years (-2.9% per year) .................................................................. 7

F. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the Same Trend 

as the Plan Experienced Over the Last 10 Years, Reduced by 1.00% (-3.9% per year) ................................. 9

G. Projection of Funded Percentage ............................................................................................................... 11

H. Actuarial Assumptions ................................................................................................................................ 12

I. Proposed Benefit Suspensions .................................................................................................................. 13

Exhibit 10 Application Page 73
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 1 Plasterers Local 82 Pension Fund A. Past Experience with Certain Critical Assumptions 

The following table summarizes the plan experience with certain critical assumptions for the last 10 years. We have broken 

units into “Pension Hours” and “Reciprocity Hours.” 

Plan Year 

Beginning 

January 1

Total Employer 

Contributions

Pension 

Hours

Reciprocity

Hours

Total 

Hours

Average 

Contribution 

Rate

With

Lia

Pay

2017 $1,340,485 123,450 3,679 127,129 $10.54 2016 1,125,460 104,347 5,072 109,419 10.29 2015 1,006,855 94,683 4,248 98,931 10.28 2014 1,220,364 131,522 (9,919) 121,603 10.00 

2013 588,385 75,745 (2,576) 73,169 8.16 

2012 529,947 95,846 (7,594) 88,252 5.96 

2011 591,486 98,944 1,765 100,709 5.80 

2010 452,215 80,475 (100) 80,375 5.62 

2009 522,820 103,082 (2,419) 100,663 5.31 

2008 810,789 162,583 2,947 165,530 5.02 

Average Annual Trend from 2008 to 2017: -2.9%*Preliminary return based on information provided by the Plan's investment consultant
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 2 

Plasterers Local 82 Pension Fund 

B. Development of December 31, 2017 Market Value of Assets 

The table below shows the actual change in the market value of assets from January 1, 2017 through 

December 31, 2017: 

1. Market value of assets, January 1, 2017 $ 18,471,135 

2. Employer contributions 1,340,485 

3. Withdrawal liability payments 0 

4. Benefit payments 2,269,592 

5. Administrative expenses 312,561 

6. Investment returns 2,365,019 

7. Market value of assets, December 31, 2017 

(1) + (2) + (3) - (4) - (5) + (6) $ 19,594,486 

 The market value of assets as of January 1, 2017 is based on the Plan’s audited financial statements 

as of December 31, 2016. 

 Employer contributions, benefit payments, and administrative expenses from January 1, 2017 through 

December 31, 2017, and the market value of assets as of as of December 31, 2017, are based on 

unaudited financial statements provided by the Plan administrator. 

Exhibit 10 Application Page 75
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund C. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 1.00% Lower than 

Used in the Actuarial Certification of Solvency The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(dprocedure 2017-43 6.05(1). 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 2024 

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,630,398 $ 18,233,999 $ 17,941,245 $ 17,654,426 $ 17,312,460 $ 16,933,72. Employer contributions 938,300 993,300 1,103,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 1,740,916 1,665,527 1,620,506 1,575,609 1,515,004 1,467,7

b. Terminated vested participants 180,532 171,340 192,827 219,570 248,162 273,820 301,7c. Current actives 126,351 153,343 193,994 244,335 297,576 348,473 396,0d. New entrants - - - - - 319 1,1

e. Total 2,467,039 2,065,599 2,052,347 2,084,411 2,121,348 2,137,617 2,166,6

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 221,96. Investment returns 914,651 881,945 865,430 851,564 836,539 819,310 799,9

7. $ 18,630,398 $ 18,233,999 $ 17,941,245 $ 17,654,426 $ 17,312,460 $ 16,933,764 $ 16,503,48. $ 21,097,437 $ 20,299,598 $ 19,993,593 $ 19,738,837 $ 19,433,808 $ 19,071,381 $ 18,670,0

Solvency ratio (8) / (4e) 8.55 9.83 9.74 9.47 9.16 8.92 8.Plan year beginning January 1 2027 2028 2029 2030 2031 2032 2033 

1. Market value of assets (beginning of year) 15,460,950 $ $ 14,884,308 $ 14,378,447 $ 13,838,522 $ 13,257,410 $ 12,651,093 $ 12,019,72. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 4. Benefit payments

a. Current retirees and beneficiaries 1,318,657 1,268,745 1,218,339 1,167,494 1,116,263 1,060,091 1,007,7

b. Terminated vested participants 394,073 418,980 440,691 462,576 475,289 488,768 499,4

c. Current actives 509,949 542,530 568,608 599,397 621,187 644,983 667,2

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 37,3

e. Total 2,228,886 2,239,955 2,241,508 2,248,048 2,236,706 2,223,727 2,211,8

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 253,7

6. Investment returns 726,052 811,384 782,407 751,347 718,440 684,141 648,3

7. $ 14,884,308 $ 14,378,447 $ 13,838,522 $ 13,257,410 $ 12,651,093 $ 12,019,760 $ 11,360,7

8. $ 17,113,194 $ 16,618,402 $ 16,080,030 $ 15,505,459 $ 14,887,799 $ 14,243,488 $ 13,572,6

Solvency ratio (8) / (4e) 7.68 7.42 7.17 6.90 6.66 6.41 6.

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2036 2037 2038 2039 2040 2041 2042 

1. Market value of assets (beginning of year) 9,973,458 $ $ 9,237,332 $ 8,479,583 $ 7,694,814 $ 6,888,004 $ 6,065,445 $ 5,231,7

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 849,664 796,762 743,900 691,208 638,872 587,136 536,2

b. Terminated vested participants 527,652 529,985 532,182 530,965 526,315 519,840 511,7

c. Current actives 721,341 738,509 757,521 772,279 781,793 785,882 781,0

d. New entrants 63,203 72,842 84,725 97,705 111,600 126,685 142,4

e. Total 2,161,859 2,138,098 2,118,327 2,092,157 2,058,580 2,019,544 1,971,6

5. Administrative expenses 265,390 269,371 273,412 277,513 281,675 285,901 290,1

6. Investment returns 532,823 491,420 448,670 404,559 359,397 313,490 267,1

7. $ 9,237,332 $ 8,479,583 $ 7,694,814 $ 6,888,004 $ 6,065,445 $ 5,231,791 $ 4,395,4

8. $ 11,399,191 $ 10,617,681 $ 9,813,141 $ 8,980,160 $ 8,124,025 $ 7,251,335 $ 6,367,1

Solvency ratio (8) / (4e) 5.27 4.97 4.63 4.29 3.95 3.59 3.

Plan year beginning January 1 2045 2046 2047 2048

1. Market value of assets (beginning of year) 2,713,784 $ $ 1,872,182 $ 1,030,217 $ 185,5122. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300

3. Withdrawal liability payments 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 392,199 348,018 306,257 267,191

b. Terminated vested participants 482,832 471,250 459,096 445,611

c. Current actives 752,128 737,963 723,972 707,949

d. New entrants 196,749 215,818 235,090 255,261

e. Total 1,823,908 1,773,049 1,724,416 1,676,012

5. Administrative expenses 303,444 307,996 312,616 317,305

6. Investment returns 127,450 80,781 34,026 (12,894)

7. $ 1,030,217 1,872,182 $ 185,512 $ insolvent8. $ 2,803,266 3,696,089 $ 1,909,927 $ 

Solvency ratio (8) / (4e) 2.03 1.58 1.11Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund D. Projections of Plan’s Solvency Ratio Assuming the Annual Rate of Return is 2.00% Lower than 

Used in the Actuarial Certification of Solvency The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(dprocedure 2017-43 6.05(2). 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 2024 

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,443,647 $ 17,859,916 $ 17,375,900 $ 16,893,191 $ 16,350,759 $ 15,767,2

2. Employer contributions 938,300 993,300 1,103,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 1,740,916 1,665,527 1,620,506 1,575,609 1,515,004 1,467,7

b. Terminated vested participants 180,532 171,340 192,827 219,570 248,162 273,820 301,7

c. Current actives 126,351 153,343 193,994 244,335 297,576 348,473 396,0

d. New entrants - - - - - 319 1,1

e. Total 2,467,039 2,065,599 2,052,347 2,084,411 2,121,348 2,137,617 2,166,6

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 221,9

6. Investment returns 727,900 694,613 674,168 655,674 636,073 614,542 591,1

7. $ 18,443,647 $ 17,859,916 $ 17,375,900 $ 16,893,191 $ 16,350,759 $ 15,767,295 $ 15,128,1

8. $ 20,910,686 $ 19,925,515 $ 19,428,248 $ 18,977,602 $ 18,472,107 $ 17,904,912 $ 17,294,7

Solvency ratio (8) / (4e) 8.48 9.65 9.47 9.10 8.71 8.38 7.

Plan year beginning January 1 2027 2028 2029 2030 2031 2032 2033 

1. Market value of assets (beginning of year) 13,657,602 $ $ 12,862,395 $ 12,119,083 $ 11,335,630 $ 10,504,992 $ 9,643,195 $ 8,750,3

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,3

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 1,318,657 1,268,745 1,218,339 1,167,494 1,116,263 1,060,091 1,007,7

b. Terminated vested participants 394,073 418,980 440,691 462,576 475,289 488,768 499,4

c. Current actives 509,949 542,530 568,608 599,397 621,187 644,983 667,2

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 37,3

e. Total 2,228,886 2,239,955 2,241,508 2,248,048 2,236,706 2,223,727 2,211,8

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 253,7

6. Investment returns 507,487 573,933 538,879 501,821 462,960 422,671 380,8

7. $ 12,862,395 $ 12,119,083 $ 11,335,630 $ 10,504,992 $ 9,643,195 $ 8,750,392 $ 7,823,9

8. $ 15,091,281 $ 14,359,038 $ 13,577,138 $ 12,753,041 $ 11,879,901 $ 10,974,120 $ 10,035,7

Solvency ratio (8) / (4e) 6.77 6.41 6.06 5.67 5.31 4.94 4.

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2036 2037 2038 2039 2040 2041

1. Market value of assets (beginning of year) 5,883,409 $ $ 4,861,502 $ 3,811,805 $ 2,728,868 $ 1,617,615 $ 484,230

2. Employer contributions 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300 1,158,300

3. Withdrawal liability payments 0 0 0 0 0 0

4. Benefit payments

a. Current retirees and beneficiaries 849,664 796,762 743,900 691,208 638,872 587,136

b. Terminated vested participants 527,652 529,985 532,182 530,965 526,315 519,840

c. Current actives 721,341 738,509 757,521 772,279 781,793 785,882

d. New entrants 63,203 72,842 84,725 97,705 111,600 126,685

e. Total 2,161,859 2,138,098 2,118,327 2,092,157 2,058,580 2,019,544

5. Administrative expenses 265,390 269,371 273,412 277,513 281,675 285,901

6. Investment returns 247,042 199,472 150,502 100,116 48,571 (3,890)

7. $ 3,811,805 4,861,502 $ 2,728,868 $ 1,617,615 $ 484,230 $ insolvent

8. $ 5,949,903 7,023,361 $ 4,847,195 $ 3,709,771 $ 2,542,810 $ 

Solvency ratio (8) / (4e) 3.25 2.78 2.29 1.77 1.24Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund E. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the 

Same Trend as the Plan Experienced Over the Last 10 Years (-2.9% per year) The table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(dprocedure 2017-43 6.05(3). 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 2024 

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,935,187 $ 18,828,494 $ 18,813,431 $ 18,784,566 $ 18,677,197 $ 18,508,9

2. Employer contributions 1,052,960 1,082,356 1,167,354 1,190,006 1,155,496 1,121,986 1,089,4

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 1,740,916 1,665,527 1,620,506 1,575,609 1,515,004 1,467,7

b. Terminated vested participants 180,532 171,340 192,827 219,570 248,162 273,820 301,7c. Current actives 126,351 153,343 193,994 244,335 297,576 348,473 396,0d. New entrants - - - - - 319 1,1e. Total 2,467,039 2,065,599 2,052,347 2,084,411 2,121,348 2,137,617 2,166,6

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 221,96. Investment returns 1,104,780 1,082,595 1,079,067 1,077,813 1,073,940 1,066,064 1,054,2

7. $ 18,828,494 18,935,187 $ 18,813,431 $ 18,784,566 $ 18,677,197 $ 18,508,941 $ 18,264,0

$ 

8. $ 20,894,093 21,402,226 $ 20,865,779 $ 20,868,977 $ 20,798,545 $ 20,646,558 $ 20,430,6

$ 

Solvency ratio (8) / (4e) 8.68 10.12 10.17 10.01 9.80 9.66 9.

 

Plan year beginning January 1 2027 2028 2029 2030 2031 2032 2033 

1. Market value of assets (beginning of year) 17,512,981 $ 17,040,084 $ 16,625,020 $ 16,147,881 $ 15,600,145 $ 14,996,311 $ 14,335,0

$ 

2. Employer contributions 997,389 968,464 940,379 913,108 886,628 860,916 835,9

 

3. Withdrawal liability payments 0 0 0 0 0 0 

 

4. Benefit payments

a. Current retirees and beneficiaries 1,318,657 1,268,745 1,218,339 1,167,494 1,116,263 1,060,091 1,007,7

 

b. Terminated vested participants 394,073 418,980 440,691 462,576 475,289 488,768 499,4

 

c. Current actives 509,949 542,530 568,608 599,397 621,187 644,983 667,2

 

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 37,3

e. Total 2,228,886 2,239,955 2,241,508 2,248,048 2,236,706 2,223,727 2,211,8

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 253,7

6. Investment returns 990,708 1,092,017 1,063,114 1,029,914 992,596 951,598 906,7

7. $ 16,625,020 17,040,084 $ 16,147,881 $ 15,600,145 $ 14,996,311 $ 14,335,051 $ 13,612,0

$ 

8. $ 18,864,975 19,268,970 $ 18,389,390 $ 17,848,193 $ 17,233,018 $ 16,558,779 $ 15,823,9

$ 

Solvency ratio (8) / (4e) 8.65 8.42 8.20 7.94 7.70 7.45 7.

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2036 2037 2038 2039 2040 2041 2042 

1. Market value of assets (beginning of year) 11,987,326 $ $ 11,073,765 $ 10,096,502 $ 9,047,751 $ 7,929,915 $ 6,746,579 $ 5,499,54

2. Employer contributions 765,310 743,116 721,566 700,640 680,322 660,593 641,43

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 849,664 796,762 743,900 691,208 638,872 587,136 536,29

b. Terminated vested participants 527,652 529,985 532,182 530,965 526,315 519,840 511,76c. Current actives 721,341 738,509 757,521 772,279 781,793 785,882 781,08

d. New entrants 63,203 72,842 84,725 97,705 111,600 126,685 142,48

e. Total 2,161,859 2,138,098 2,118,327 2,092,157 2,058,580 2,019,544 1,971,6

5. Administrative expenses 265,390 269,371 273,412 277,513 281,675 285,901 290,186. Investment returns 748,378 687,090 621,422 551,193 476,598 3 397,812 15,06

7. $ 10,096,502 11,073,765 $ 9,047,751 $ 7,929,915 $ 6,746,579 $ 5,499,540 $ 4,194,23

$ 

8. $ 12,234,600 13,235,624 $ 11,166,078 $ 10,022,072 $ 8,805,160 $ 7,519,083 $ 6,165,85

$ 

Solvency ratio (8) / (4e) 6.12 5.72 5.27 4.79 4.28 3.72 3.

 

Plan year beginning January 1 2045

1. Market value of assets (beginning of year) 1,394,756 $ 2. Employer contributions 587,2333. Withdrawal liability payments 04. Benefit payments

a. Current retirees and beneficiaries 392,199b. Terminated vested participants 482,832c. Current actives 752,128d. New entrants 196,749e. Total 1,823,908

5. Administrative expenses 303,4446. Investment returns 42,691

7. insolvent8.

Solvency ratio (8) / (4e)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund F. Projections of Plan’s Solvency Ratio Assuming the Activity Assumption Continues Under the 

Same Trend as the Plan Experienced Over the Last 10 Years, Reduced by 1.00% (-3.9% per yearThe table shows the plan-year-by-plan-year market value of assets projection as required under regulation 1.432(e)(9)-1(dprocedure 2017-43 6.05(4). 

Plan year beginning January 1 2018 2019 2020 2021 2022 2023 2024 

1. Market value of assets (beginning of year) 19,594,486 $ $ 18,924,028 $ 18,793,853 $ 18,740,012 $ 18,657,142 $ 18,482,272 $ 18,232,9

2. Employer contributions 1,042,116 1,060,177 1,131,657 1,141,736 1,097,208 1,054,417 1,013,2

3. Withdrawal liability payments 0 0 0 0 0 0 4. Benefit payments

a. Current retirees and beneficiaries 2,160,157 1,740,916 1,665,527 1,620,506 1,575,609 1,515,004 1,467,7

b. Terminated vested participants 180,532 171,340 192,827 219,570 248,162 273,820 301,7

c. Current actives 126,351 153,343 193,994 244,335 297,576 348,473 396,0

d. New entrants - - - - - 319 1,1

e. Total 2,467,039 2,065,599 2,052,347 2,084,411 2,121,348 2,137,617 2,166,6

5. Administrative expenses 350,000 206,045 209,136 212,273 215,457 218,689 221,9

6. Investment returns 1,104,465 1,081,292 1,075,985 1,072,078 1,064,727 1,052,599 1,035,7

7. $ 18,793,853 18,924,028 $ 18,740,012 $ 18,657,142 $ 18,482,272 $ 18,232,983 $ 17,893,4

$ 

8. $ 20,859,452 21,391,067 $ 20,792,359 $ 20,741,553 $ 20,603,620 $ 20,370,600 $ 20,060,0

$ 

Solvency ratio (8) / (4e) 8.67 10.10 10.13 9.95 9.71 9.53 9.

 

Plan year beginning January 1 2027 2028 2029 2030 2031 2032 2033 

1. Market value of assets (beginning of year) 16,911,688 $ 16,302,377 $ 15,730,217 $ 15,079,653 $ 14,341,582 $ 13,529,862 $ 12,642,4

$ 

2. Employer contributions 899,303 864,230 830,525 798,135 767,007 737,094 708,3

 

3. Withdrawal liability payments 0 0 0 0 0 0 

 

4. Benefit payments

a. Current retirees and beneficiaries 1,318,657 1,268,745 1,218,339 1,167,494 1,116,263 1,060,091 1,007,7

 

b. Terminated vested participants 394,073 418,980 440,691 462,576 475,289 488,768 499,4

 

c. Current actives 509,949 542,530 568,608 599,397 621,187 644,983 667,2

 

d. New entrants 6,207 9,700 13,870 18,581 23,966 29,884 37,3

e. Total 2,228,886 2,239,955 2,241,508 2,248,048 2,236,706 2,223,727 2,211,8

5. Administrative expenses 232,108 235,590 239,124 242,710 246,351 250,046 253,7

6. Investment returns 952,380 1,039,155 9 999,542 54,553 904,330 7 849,265 89,1

7. $ 15,730,217 16,302,377 $ 15,079,653 $ 14,341,582 $ 13,529,862 $ 12,642,447 $ 11,674,2

$ 

8. $ 17,970,172 18,531,263 $ 17,321,161 $ 16,589,630 $ 15,766,568 $ 14,866,174 $ 13,886,1

$ 

Solvency ratio (8) / (4e) 8.31 8.02 7.73 7.38 7.05 6.69 6.

 

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund 

Plan year beginning January 1 2036 2037 2038 2039 2040 2041 2042

1. Market value of assets (beginning of year) 9,498,368 $ $ 8,276,895 $ 6,968,689 $ 5,564,744 $ 4,066,143 $ 2,475,041 $ 791,6

2. Employer contributions 628,661 604,143 580,582 557,939 536,179 515,268 495,1

3. Withdrawal liability payments 0 0 0 0 0 0 

4. Benefit payments

a. Current retirees and beneficiaries 849,664 796,762 743,900 691,208 638,872 587,136 536,2

b. Terminated vested participants 527,652 529,985 532,182 530,965 526,315 519,840 511,7

c. Current actives 721,341 738,509 757,521 772,279 781,793 785,882 781,0

d. New entrants 63,203 72,842 84,725 97,705 111,600 126,685 142,4e. Total 2,161,859 2,138,098 2,118,327 2,092,157 2,058,580 2,019,544 1,971,6

5. Administrative expenses 265,390 269,371 273,412 277,513 281,675 285,901 290,1

6. Investment returns 577,115 495,120 3 407,212 2 13,129 1 12,975 06,829 (5,1

7. $ 8,276,895 $ 6,968,689 $ 5,564,744 $ 4,066,143 $ 2,475,041 $ 791,694 insolve

8. $ 10,438,754 $ 9,106,787 $ 7,683,071 $ 6,158,299 $ 4,533,622 $ 2,811,238

Solvency ratio (8) / (4e) 4.83 4.26 3.63 2.94 2.20 1.39

Market value of assets (end of year)(1) + (2) + (3) - (4e) - (5) + (6)Available resources(1) + (2) + (3) - (5) + (6)
Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 Plasterers Local 82 Pension Fund G. Projection of Funded Percentage 

The table shows the projected market value of assets, plan liability and funded percentage for the plan years ending DecemDecember 31, 2054 as required under regulation 1.432(e)(9)-1(d)(5)(vi)(D) and revenue procedure 2017-43 6.06. 

Plan year ending December 31 2018 2019 2020 2021 2022 2023 2024 

1. Value of plan assets $ 18,817,193 $ 18,611,893 $ 18,518,134 $ 18,439,220 $ 18,314,361 $ 18,162,068 $ 17,967,5

2. Unit credit accrued liability 38,129,644 29,709,695 29,641,381 29,533,347 29,377,587 29,192,324 28,963,9

3. Funded percentage: (1) / (2) 49.4% 62.6% 62.5% 62.4% 62.3% 62.2% 62.0

Plan year ending December 31 2027 2028 2029 2030 2031 2032 2033 

1. Value of plan assets $ 17,112,374 $ 16,898,246 $ 16,664,516 $ 16,404,666 $ 16,135,362 $ 15,857,603 $ 15,569,6

2. Unit credit accrued liability 28,004,981 27,627,441 27,225,215 26,790,760 26,341,399 25,877,588 25,396,5

3. Funded percentage: (1) / (2) 61.1% 61.2% 61.2% 61.2% 61.3% 61.3% 61.3

Plan year ending December 31 2036 2037 2038 2039 2040 2041 2042 

1. Value of plan assets $ 14,673,205 $ 14,365,972 $ 14,054,403 $ 13,744,756 $ 13,444,745 $ 13,160,593 $ 12,902,4

2. Unit credit accrued liability 23,877,344 23,347,044 22,803,932 22,253,558 21,703,153 21,158,815 20,630,3

3. Funded percentage: (1) / (2) 61.5% 61.5% 61.6% 61.8% 61.9% 62.2% 62.5

Plan year ending December 31 2045 2046 2047 2048 2049 2050 2051 

1. Value of plan assets $ 12,305,501 $ 12,176,813 $ 12,084,968 $ 12,032,123 $ 12,020,625 $ 12,053,539 $ 12,132,1

2. Unit credit accrued liability 19,153,157 18,705,401 18,280,059 17,878,248 17,501,289 17,151,125 16,827,7

3. Funded percentage: (1) / (2) 64.2% 65.1% 66.1% 67.3% 68.7% 70.3% 72.

Plan year ending December 31 2054 2055

1. Value of plan assets $ 12,652,775 $ 12,923,342

2. Unit credit accrued liability 16,015,718 15,794,794

3. Funded percentage: (1) / (2) 79.0% 81.8%

Milliman Additional Information 

Additional Information for Proposed Benefit Suspensions as of February 1, 2019 13 

Plasterers Local 82 Pension Fund 

I. Proposed Benefit Suspensions 

The projections included in this report assume that the suspension requested in the application filed on 

behalf of the Plasterers Local #82 Pension Fund continue indefinitely. These suspensions are briefly 

summarized below. 

The application proposes that, for participants who worked at least 400 covered hours in 2015 or 2016, 

22% of the participant’s benefit earned as of January 1, 2017 be suspended, and for all other participants 

and beneficiaries, 31% of the benefit earned as of January 1, 2017 be suspended. In addition, 

participants who are covered by a participating annuity contract with Principal Financial Group will not be 

suspended, as the terms of that contract do not allow a reduction in the benefit amount. 

Finally, the proposed suspension also provides for different treatment of participants and beneficiaries as 

a result of the application of the individual limitations of §432(e)(9)(D)(i), (ii) and (iii), which are 

summarized below: 

 §432(e)(9)(D)(i) – No suspension will result in reducing a participant’s or beneficiary’s benefit below 

110% of the PBGC guaranteed benefit. 

 §432(e)(9)(D)(ii) –No suspensions can be made for participants and beneficiaries above the age of 80 

as of the end of the month of the effective date of the suspension (February 28, 2019). The 

suspension is reduced by a factor for participants and beneficiaries above the age of 75 but younger 

than 80 as of the end of the month of the effective date of the suspension. The factor is calculated by 

determining how many months the participant or beneficiary has until age 80 (as of the end of the 

month of the effective date of the suspension) and dividing that amount by 60. 

 §432(e)(9)(D)(iii) – No benefits based on disability can be suspended. 

Exhibit 10 Application Page 86












Your plan is an important legal document. This sample plan has been prepared based on our understanding 

of the desired provisions. It may not fit your situation. You should consult with your lawyer on the plan's legal 

and tax implications. Neither Principal Life Insurance Company nor its agents can be responsible for the legal 

or tax aspects of the plan or its appropriateness for your situation. If you wish to change the provisions of this 

sample plan, you may ask us to prepare new sample wording for you and your lawyer to review. 

Exhibit 13 Application Page 99
PLASTERERS LOCAL 82 PENSION FUND 

Defined Benefit Plan CL2013 

Restated January 1, 2014 

Exhibit 13 Application Page 100
RESTATEMENT JANUARY 1, 2014 i TABLE OF CONTENTS (7-6466)-1

TABLE OF CONTENTS

INTRODUCTION 

ARTICLE I FORMAT AND DEFINITIONS 

Section 1.01 ----- Format 

Section 1.02 ----- Definitions 

ARTICLE II PARTICIPATION 

Section 2.01 ----- Active Participant 

Section 2.02 ----- Inactive Participant 

Section 2.03 ----- Cessation of Participation 

ARTICLE III CONTRIBUTIONS 

Section 3.01 ----- Employer Contributions 

Section 3.02 ----- Investment of Contributions 

Section 3.03 ----- Funding Policy 

Section 3.04 ----- Purchase of Annuities 

ARTICLE IV RETIREMENT BENEFITS 

Section 4.01 ----- Accrued Benefit 

Section 4.02 ----- Disregard of Accrued Benefit 

Section 4.03 ----- Benefit Limitation 

Section 4.04 ----- Amount of Benefit at Retirement 

Section 4.05 ----- Temporary Limitation of Benefits 

Section 4.06 ----- Benefits Upon Reemployment After Retirement Date: Suspension 

ARTICLE V OTHER BENEFITS 

Section 5.01 ----- Death Benefits 

Section 5.02 ----- Vested Benefits 

Section 5.03 ----- Disability Benefits 

ARTICLE VI WHEN BENEFITS START AND DISTRIBUTION OF BENEFITS 

Section 6.01 ----- When Benefits Start 

Section 6.02 ----- Automatic Forms of Distribution 

Section 6.03 ----- Optional Forms of Distribution 

Section 6.04 ----- Election Procedures 

Section 6.05 ----- Notice Requirements 

Section 6.06 ----- Transitional Rules 

ARTICLE VII REQUIRED MINIMUM DISTRIBUTIONS 

Section 7.01 ----- Application 

Section 7.02 ----- Definitions 

Exhibit 13 Application Page 101
RESTATEMENT JANUARY 1, 2014 ii TABLE OF CONTENTS (7-6466)-1

Section 7.03 ----- Required Minimum Distributions 

Section 7.04 ----- TEFRA Section 242(b)(2) Elections 

ARTICLE VIII TERMINATION OF AND WITHDRAWAL FROM THE PLAN 

Section 8.01 ----- Termination of the Plan 

Section 8.02 ----- Withdrawal from the Plan 

ARTICLE IX ADMINISTRATION OF THE PLAN 

Section 9.01 ----- Administration 

Section 9.02 ----- Expenses 

Section 9.03 ----- Records 

Section 9.04 ----- Information Available 

Section 9.05 ----- Claim Procedures 

Section 9.06 ----- Exercise of Discretionary Authority 

ARTICLE X GENERAL PROVISIONS 

Section 10.01 ----- Amendments 

Section 10.02 ----- Direct Rollovers 

Section 10.03 ----- Mergers 

Section 10.03 ----- Mergers and Direct Transfers 

Section 10.04 ----- Provisions Relating to the Insurer and Other Parties 

Section 10.05 ----- Employment Status 

Section 10.06 ----- Rights to Plan Assets 

Section 10.07 ----- Beneficiary 

Section 10.08 ----- Nonalienation of Benefits 

Section 10.09 ----- Construction 

Section 10.10 ----- Legal Actions 

Section 10.11 ----- Small Amounts 

Section 10.12 ----- Word Usage 

Section 10.13 ----- Change in Service Method 

Section 10.14 ----- Military Service 

PLAN EXECUTION 

Exhibit 13 Application Page 102
RESTATEMENT JANUARY 1, 2014 1 INTRODUCTION (7-6466)-1

INTRODUCTION

The Trustee previously established a defined benefit plan on January 1, 1962. 

The Plan is being restated effective January 1, 2014, and is set forth in this document which is 

substituted in lieu of the prior document with the exception of any interim amendment and any model 

amendment that have not been incorporated into this restatement. Such amendment(s) shall continue to 

apply to this restated Plan until such provisions are integrated into the Plan or such amendment(s) are 

superseded by another amendment. 

It is intended that the Plan, as restated, qualify as a defined benefit plan under the Internal Revenue 

Code of 1986, including any later amendments to the Code. The Trustee agrees to operate the Plan 

according to the terms, provisions and conditions set forth in this document. 

The restated Plan continues to be for the exclusive benefit of all eligible employees. All persons 

covered under the Plan before the effective date of this restatement shall continue to be covered under the 

restated Plan with no loss of benefits. 

The Plan includes the statutory, regulatory, and guidance changes specified in the 2013 Cumulative List 

of Changes in Plan Qualification Requirements (2013 Cumulative List) contained in Internal Revenue Service 

Notice 2013-84 and the qualification requirements and guidance published before the issuance of such list. 

The provisions of this plan apply as of the effective date of the restatement unless otherwise specified. 

Exhibit 13 Application Page 103
RESTATEMENT JANUARY 1, 2014 2 ARTICLE I (7-6466)-1

ARTICLE I

FORMAT AND DEFINITIONS

SECTION 1.01--FORMAT.

Words and phrases defined in the DEFINITIONS SECTION of Article I shall have that defined meaning 

when used in this Plan, unless the context clearly indicates otherwise. These words and phrases will have 

initial capital letters to aid in identifying them as defined terms. 

SECTION 1.02--DEFINITIONS.

Accrual Break in Service means an Accrual Computation Period in which an Employee is credited with 

399 or fewer Hours of Service. An Employee incurs an Accrual Break in Service on the last day of an 

Accrual Computation Period in which he has an Accrual Break in Service. 

Accrual Computation Period means a consecutive 12-month period ending on each December 31. 

Accrual Service means the sum of an Employee’s Past Accrual Service and his Future Accrual 

Service. 

Past Accrual Service means the service before January 1, 1962, credited only for a Participant who 

became an Active Participant under the prior plan on January 1, 1962 or the date his local union 

entered the prior plan, if later, equal to the number of years (not to exceed 10) of service (counting 

completed months as fractional parts of a year) in jobs covered by the terms and conditions of a 

collective bargaining agreement with the Union; or his membership in a participating local union before 

January 1, 1962, or the date his local union entered the prior plan, if later. In no event shall an 

Employee’s Past Accrual Service exceed the sum of the years of his Future Accrual Service. 

 

Future Accrual Service means the sum of (a) and (b) below: 

(a) One year of service for each Plan Year ending on and after January 1, 1962, and before January 

1, 1976, during which an Employee has been an Active Participant and is credited with at least 

400 Hours of Service. 

(b) One year of service for each Accrual Computation Period ending on or after the later of January 

1, 1976, or an Employee’s Entry Date in which he is credited with at least 400 Hours of Service. 

The 400 Hours of Service requirement shall be adjusted for the first Accrual Computation Period 

ending after his Entry Date if such date occurs after the commencement of such period. The 

adjustment shall be determined by multiplying 400 by the ratio of (i) the number of days from his 

Entry Date to the end of such period to (ii) 365. 

The 400 Hours of Service requirement shall also be adjusted during the Accrual Computation 

Period in which a Participant’s Normal Retirement Date occurs. During such Accrual 

Computation Period, such Participant shall earn one year of Accrual Service if he is credited with 

at least one Hour of Service. 

However, Accrual Service is modified as follows: 

Exhibit 13 Application Page 104
RESTATEMENT JANUARY 1, 2014 3 ARTICLE I (7-6466)-1

Rule of parity service excluded: 

 An Employee's Accrual Service, accumulated before an Accrual Break in Service that occurred 

before the first Yearly Date in 1985, shall be excluded if: 

 (a) he was a nonvested Participant, and 

 (b) his latest period of consecutive Accrual Breaks in Service equals or exceeds his prior 

Accrual Service (disregarding any Accrual Service that was excluded because of a 

previous period of Accrual Breaks in Service). 

 Service accrued after the first Yearly Date in 1985 shall not be excluded because of the rule of 

parity. 

Period of Military Duty included: 

 A Period of Military Duty shall be included as service with a participating Employer to the extent it 

has not already been credited. For purposes of crediting Hours of Service during the Period of 

Military Duty, an Hour of Service shall be credited (without regard to the 501 Hour of Service 

limitation) for each hour an Employee would normally have been scheduled to work for a 

participating Employer during such period. 

Accrued Benefit means on any date, the amount of monthly retirement benefit under the Normal Form 

accrued by an Active Participant as of any date and payable at Normal Retirement Age, or such date, if 

later. See the ACCRUED BENEFIT SECTION of Article IV. 

Active Participant means an Eligible Employee who is actively participating in the Plan according to 

the provisions in the ACTIVE PARTICIPANT SECTION of Article II. 

Actuarial Equivalent means equality in the value of the aggregate amount expected to be received for 

benefits payable at different times or under different forms of distributions. 

For purposes of determining the amount of a distribution other than an annual benefit that is 

nondecreasing for the life of the Participant or, in the case of a qualified preretirement survivor annuity, 

the life of the Participant’s spouse; or that decreases during the life of the Participant merely because of 

the death of the surviving annuitant (but only if the reduction is to a level not below 50% of the annual 

benefit payable before the death of the surviving annuitant) or merely because of the cessation or 

reduction of Social Security supplements or qualified disability payments, Actuarial Equivalent shall be 

determined on the basis of the Applicable Interest Rate and the Applicable Mortality Table. 

For purposes of determining benefits not described in the preceding paragraph, Actuarial Equivalent for 

benefits shall be determined on the basis of 7.5 percent interest and the 1983 Group Annuity Mortality 

Table as set forth in Revenue Ruling 95-6, 1995-1 C.B. 80. 

In any event, the preceding paragraphs shall not apply to the extent they would cause the Plan to fail to 

satisfy the requirements of the BENEFIT LIMITATION SECTION of Article IV. 

In the event the basis for determining Actuarial Equivalent is changed, Actuarial Equivalent of the 

Participant’s Accrued Benefit on and after the date of the change shall be determined as the greater of 

(a) the Actuarial Equivalent of the Accrued Benefit as of the date of the change computed on the old 

Exhibit 13 Application Page 105
RESTATEMENT JANUARY 1, 2014 4 ARTICLE I (7-6466)-1

basis, or (b) the Actuarial Equivalent of the total Accrued Benefit computed on the new basis. The 

preceding sentence shall not apply to the determination of the Present Value because of a change 

made to the Applicable Interest Rate or Applicable Mortality Table if such change is specifically afforded 

relief from compliance with Code Section 411(d)(6) and the applicable regulations thereunder. 

Alternate Payee means any spouse, former spouse, child, or other dependent of a Participant who is 

recognized by a qualified domestic relations order as having a right to receive all, or a portion of, the 

benefits payable under the Plan with respect to such Participant. 

Annuity Contract means the annuity contract or contracts into which the Trustee enters with the 

Insurer for guaranteed benefits, for the investment of Contributions in separate accounts, and for the 

payment of benefits under this Plan. 

Annuity Starting Date means the first day of the first period for which an amount is payable to the 

Participant as an annuity or any other form. 

The Annuity Starting Date for disability benefits shall be the date such benefits commence if the 

disability benefit is not an auxiliary benefit. An auxiliary benefit is a disability benefit that does not 

reduce the benefit payable at Normal Retirement Age. 

Applicable Interest Rate means, on any date, the rate of interest set forth in Code Section 417(e)(3) 

for the look-back month for the stability period. The Applicable Interest Rate shall be the adjusted first, 

second, and third segment rates applied under Code Section 430(h)(2)(C) (without the 24-month 

averaging under Code Section 430(h)(2)(D) and determined without regard to the adjustment for the 25-

year average segment rates provided in Code Section 430(h)(2)(C)(iv)). For this purpose, the first, 

second and third segment rates are the first, second, and third segment rates which would be 

determined under Code Section 430(h)(2)(C) if: 

(a) Code Section 430(h)(2)(D) were applied by substituting the average yields for the month 

described above for the average yields for the 24-month period described in such section, and 

(b) Code Section 430(h)(2)(G)(i)(II) were applied by substituting “Section 417(e)(3)(A)(ii)(II)” for 

“Section 412(b)(5)(B)(ii)(II)”, and 

(c) The applicable percentage under Code Section 430(h)(2)(G) is treated as being 20% in 2008, 

40% in 2009, 60% in 2010, and 80% in 2011. 

The look-back month applicable to the stability period is the second calendar month preceding the first 

day of the stability period. The stability period is the successive period of one calendar month that 

contains the Annuity Starting Date for the distribution and for which the Applicable Interest Rate 

remains constant. 

A plan amendment that changes the date for determining the Applicable Interest Rate (including an 

indirect change such as the result of a change in Plan Year when the stability period is the Plan Year), 

shall not be given effect with respect to any distribution during the period ending one year after the later 

of the amendment’s effective date or adoption date, if, during such period and as a result of such 

amendment, the Participant’s distribution would be reduced. 

Applicable Mortality Table means, on any date, the table according to the method set forth in Code 

Section 417(e)(3). 

 

Exhibit 13 Application Page 106
RESTATEMENT JANUARY 1, 2014 5 ARTICLE I (7-6466)-1

Association means the Contracting Plasterers Association of Oregon and the Portland Plastering 

Contractor’s Association. 

Beneficiary means the person or persons named by a Participant to receive any benefits under the 

Plan when the Participant dies. See the BENEFICIARY SECTION of Article X. 

Claimant means any person who makes a claim for benefits under this Plan. See the CLAIM 

PROCEDURES SECTION of Article IX. 

Code means the Internal Revenue Code of 1986, as amended. 

Contingent Annuitant means an individual named by the Participant to receive a lifetime benefit after 

the Participant's death in accordance with a survivorship life annuity. 

Contributions means Employer Contributions as set out in Article III. 

Designated Beneficiary means the individual who is designated by the Participant (or the Participant’s 

surviving spouse) as the Beneficiary of the Participant’s interest under the Plan and who is the 

designated beneficiary under Code Section 401(a)(9) and section 1.401(a)(9)-4 of the regulations. 

Differential Wage Payments means any payments that are made by a participating Employer to an 

individual with respect to any period during which the individual is performing Qualified Military Service 

while on active duty for a period of more than 30 days. Such payments shall be made in accordance 

with Code Section 3401(h) and represent all or a portion of the wages the individual would have 

received from the participating Employer if the individual were performing service for the participating 

Employer. 

Direct Rollover means a payment by the Plan to the Eligible Retirement Plan specified by the 

Distributee. 

Distributee means an Employee or former Employee. In addition, the Employee's (or former 

Employee's) surviving spouse and the Employee's (or former Employee's) spouse or former spouse who 

is the Alternate Payee under a qualified domestic relations order, as defined in Code Section 414(p), 

are Distributees with regard to the interest of the spouse or former spouse. A Distributee includes the 

Employee’s (or former Employee’s) nonspouse Designated Beneficiary, in which case, the distribution 

can only be transferred to a traditional IRA or Roth IRA established on behalf of the nonspouse 

Designated Beneficiary and that will be treated as an inherited IRA pursuant to the provisions of Code 

Section 402(c)(11). 

Early Retirement Age means, for all retirements on or prior to July 31, 2010, age 52. 

Early Retirement Age means, for all retirements on or after August 1, 2010, and on or before July 31, 

2013, a Participant’s age on the date he first meets the requirements of either (a), (b), or (c) below: 

(a) For purposes of Tier 1 eligibility: 

 

(1) He has attained age 55 and completed 25 years of Accrual Service; or 

(2) He has attained age 55, completed 15 years of Accrual Service, and satisfied the Recency 

Test at retirement. 

Exhibit 13 Application Page 107
RESTATEMENT JANUARY 1, 2014 6 ARTICLE I (7-6466)-1

(b) For purposes of Tier 2 eligibility: 

(1) He has attained age 57 and completed 15 years of Accrual Service; however, he has not 

met the requirements for Tier 1 eligibility; or 

(2) He has attained age 57 and satisfied the Recency Test at retirement; however, he has not 

met the requirements for Tier 1 eligibility. 

(c) For purposes of Tier 3 eligibility: 

(1) He has attained age 57 and does not meet the requirements for either Tier 1 or Tier 2 

eligibility. 

Early Retirement Age means, for all retirements on or after August 1, 2013, a Participant’s age on the 

date he first meets the requirements of either (a) or (c) below: 

(a) For purposes of Tier 1 eligibility: 

 

(1) He has attained age 57 and completed 25 years of Accrual Service; or 

(2) He has attained age 57, completed 15 years of Accrual Service, and satisfied the Recency 

Test at retirement. 

(b) For purposes of Tier 2 eligibility: This tier has been eliminated. 

(c) For purposes of Tier 3 eligibility: 

(1) He has attained age 57 and does not meet the requirements for either Tier 1 or Tier 2 

eligibility. 

Early Retirement Date means the first day of any month before a Participant’s Normal Retirement Date 

that he selects for the start of his retirement benefits. This day shall be on or after the date he has a 

Severance from Employment and reaches Early Retirement Age. If a Participant has a Severance from 

Employment before satisfying any age requirement for Early Retirement Age, but after satisfying any 

other requirements, the Participant shall be entitled to elect an early retirement benefit upon satisfying 

such age requirement. 

Earned Income means, for a Self-employed Individual, net earnings from self-employment in the trade 

or business for which this Plan is established if such Self-employed Individual’s personal services are a 

material income producing factor for that trade or business. Net earnings shall be determined without 

regard to items not included in gross income and the deductions properly allocable to or chargeable 

against such items. Net earnings shall be reduced for the employer contributions to a participating 

Employer’s qualified retirement plan(s) to the extent deductible under Code Section 404. 

Net earnings shall be determined with regard to the deduction allowed to a participating Employer by 

Code Section 164(f) for taxable years beginning after December 31, 1989. 

 Eligible Employee means any Employee of a participating employer who is represented for collective 

bargaining purposes by Operative Plasterers and Cement Masons International Association, Local 

Union No. 82. 

Exhibit 13 Application Page 108
RESTATEMENT JANUARY 1, 2014 7 ARTICLE I (7-6466)-1

Eligible Retirement Plan means an eligible plan under Code Section 457(b) that is maintained by a 

state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision 

of a state and which agrees to separately account for amounts transferred into such plan from this Plan, 

a traditional IRA, a Roth IRA, an annuity plan described in Code Section 403(a), an annuity contract 

described in Code Section 403(b), or a qualified plan described in Code Section 401(a), that accepts 

the Distributee's Eligible Rollover Distribution. The definition of Eligible Retirement Plan shall also 

apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the 

Alternate Payee under a qualified domestic relations order, as defined in Code Section 414(p). 

Eligible Rollover Distribution means any distribution of all or any portion of the balance to the credit 

of the Distributee, except that an Eligible Rollover Distribution does not include: (i) any distribution that 

is one of a series of substantially equal periodic payments (not less frequently than annually) made for 

the life (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the 

Distributee and the Distributee's Designated Beneficiary, or for a specified period of 10 years or more; 

(ii) any distribution to the extent such distribution is required under Code Section 401(a)(9); (iii) the 

portion of any other distribution(s) that is not includible in gross income (determined without regard to 

the exclusion for net unrealized appreciation with respect to employer securities); and (iv) any other 

distribution(s) that is reasonably expected to total less than $200 during a year. 

A portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion 

consists of after-tax employee contributions that are not includible in gross income. However, such 

portion may be transferred only to (i) a traditional individual retirement account or annuity described in 

Code Section 408(a) or (b) (a “traditional IRA”); (ii) a Roth individual retirement account or annuity 

described in Code Section 408A (a “Roth IRA”); or (iii) a qualified defined contribution, defined benefit 

or annuity plan described in Code Section 401(a) or 403(a) or to an annuity contract described in Code 

Section 403(b), if such plan or contract agrees to separately account for amounts so transferred 

(including interest thereon), including separately accounting for the portion of such distribution which is 

includible in gross income and the portion of such distribution which is not so includible. 

Employee means an individual who is employed by a participating Employer. 

The term Employee shall include any individual who was employed by a participating Employer and who 

is receiving Differential Wage Payments from such participating Employer. 

The term Employee shall include any Self-employed Individual treated as an employee of any employer 

described in the preceding paragraphs as provided in Code Section 401(c)(1). 

Employer means, except for purposes of the BENEFIT LIMITATION SECTION of Article IV, the 

Employer Association, present and future members, and any other employer, whether individual, firm or 

corporation who are (i) required pursuant to a collective bargaining agreement to contribute to the Trust 

Fund or (ii) who agree to contribute to such Trust Fund and who have in fact made one or more 

contributions to such fund. Wherever the term is used under this Plan, the singular shall be deemed to 

include all participating employers unless its usage specifically indicates otherwise. 

Employer Contributions means contributions made by participating Employers to fund this Plan 

including Off-Benefit Contributions. See the EMPLOYER CONTRIBUTIONS SECTION of Article III. 

Entry Date means the date an Employee first enters the Plan as an Active Participant. See the 

ACTIVE PARTICIPANT SECTION of Article II. 

ERISA means the Employee Retirement Income Security Act of 1974, as amended. 

Exhibit 13 Application Page 109
RESTATEMENT JANUARY 1, 2014 8 ARTICLE I (7-6466)-1

Highly Compensated Employee means any Employee who: 

(a) was a 5-percent owner at any time during the year or the preceding year, or 

(b) for the preceding year had compensation from a participating Employer in excess of $80,000. 

The $80,000 amount is adjusted at the same time and in the same manner as under Code 

Section 415(d), except that the base period is the calendar quarter ending September 30, 1996. 

For this purpose the applicable year of the plan for which a determination is being made is called a 

determination year and the preceding 12-month period is called a look-back year. 

The determination of who is a highly compensated former Employee is based on the rules applicable to 

determining Highly Compensated Employee status as in effect for that determination year, in 

accordance with section 1.414(q)-1T, A-4 of the temporary Income Tax Regulations and Internal 

Revenue Service Notice 97-45. 

The determination of who is a Highly Compensated Employee, including the compensation that is 

considered and the identity of the 5-percent owners, shall be made in accordance with Code Section 

414(q) and the regulations thereunder. 

For purposes of this definition, the above references to compensation shall mean Compensation as 

defined in the BENEFIT LIMITATION SECTION of Article IV. 

Hour of Service means the following: 

(a) Each hour for which an Employee is paid, or entitled to payment, for performing duties for a 

participating Employer during the applicable computation period. 

(b) Each hour for which an Employee is paid, or entitled to payment, by a participating Employer on 

account of a period of time in which no duties are performed (irrespective of whether the 

employment relationship has terminated) due to vacation, holiday, illness, incapacity (including 

disability), layoff, jury duty, military duty or leave of absence. Notwithstanding the preceding 

provisions of this subparagraph (b), no credit will be given to the Employee: 

(1) for more than 501 Hours of Service under this subparagraph (b) on account of any single 

continuous period in which the Employee performs no duties (whether or not such period 

occurs in a single computation period); or 

(2) for an Hour of Service for which the Employee is directly or indirectly paid, or entitled to 

payment, on account of a period in which no duties are performed if such payment is made 

or due under a plan maintained solely for the purpose of complying with applicable 

worker's or workmen's compensation, or unemployment compensation, or disability 

insurance laws; or 

(3) for an Hour of Service for a payment that solely reimburses the Employee for medical or 

medically related expenses incurred by him. 

For purposes of this subparagraph (b), a payment shall be deemed to be made by, or due from a 

participating Employer, regardless of whether such payment is made by, or due from such 

Employer, directly or indirectly through, among others, a trust fund or insurer, to which such 

Exhibit 13 Application Page 110
RESTATEMENT JANUARY 1, 2014 9 ARTICLE I (7-6466)-1

Employer contributes or pays premiums and regardless of whether contributions made or due to 

the trust fund, insurer, or other entity are for the benefit of particular employees or are on behalf 

of a group of employees in the aggregate. 

(c) Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed 

to by a participating Employer. The same Hours of Service shall not be credited both under 

subparagraph (a) or subparagraph (b) above (as the case may be) and under this subparagraph 

(c). Crediting of Hours of Service for back pay awarded or agreed to with respect to periods 

described in subparagraph (b) above will be subject to the limitations set forth in that 

subparagraph. 

The crediting of Hours of Service above shall be applied under the rules of paragraphs (b) and (c) of the 

Department of Labor Regulation 2530.200b-2 (including any interpretations or opinions implementing 

such rules); which rules, by this reference, are specifically incorporated in full within this Plan. The 

reference to paragraph (b) applies to the special rule for determining Hours of Service for reasons other 

than the performance of duties such as payments calculated (or not calculated) on the basis of units of 

time and the rule against double credit. The reference to paragraph (c) applies to the crediting of Hours 

of Service to computation periods. 

Solely for purposes of determining whether a one-year break in service has occurred for eligibility or 

vesting purposes, during a Parental Absence an Employee shall be credited with the Hours of Service 

that would otherwise have been credited to the Employee but for such absence, or in any case in which 

such hours cannot be determined, eight Hours of Service per day of such absence. The Hours of 

Service credited under this paragraph shall be credited in the computation period in which the absence 

begins if the crediting is necessary to prevent a break in service in that period; or in all other cases, in 

the following computation period. 

Inactive Participant means a former Active Participant who has an Accrued Benefit. See the 

INACTIVE PARTICIPANT SECTION of Article II. 

Insurer means Principal Life Insurance Company or the insurance company or companies named by 

the Trustee. 

Investment Manager means any fiduciary (other than a trustee or Named Fiduciary) 

(a) who has the power to manage, acquire, or dispose of any assets of the Plan; 

(b) who (i) is registered as an investment adviser under the Investment Advisers Act of 1940; (ii) is 

not registered as an investment adviser under such Act by reason of paragraph (1) of Section 

203A(a) of such Act, is registered as an investment adviser under the laws of the state (referred 

to in such paragraph (1)) in which it maintains its principal office and place of business, and, at 

the time it last filed the registration form most recently filed by it with such state in order to 

maintain its registration under the laws of such state, also filed a copy of such form with the 

Secretary of Labor; (iii) is a bank, as defined in that Act; or (iv) is an insurance company qualified 

to perform services described in subparagraph (a) above under the laws of more than one state; 

and 

(c) who has acknowledged in writing being a fiduciary with respect to the Plan. 

Exhibit 13 Application Page 111
RESTATEMENT JANUARY 1, 2014 10 ARTICLE I (7-6466)-1

Late Retirement Date means the first day of any month that is after a Participant’s Normal Retirement 

Date and on which retirement benefits begin. If a Participant continues to work for a participating 

Employer after his Normal Retirement Date, his Late Retirement Date shall be the earliest first day of 

the month on or after the date he has a Severance from Employment. In modification of the foregoing, 

a Participant may elect to begin his retirement benefits before he has a Severance from Employment. A 

later Retirement Date (after a Severance from Employment) may apply if the Participant so elects. See 

the WHEN BENEFITS START SECTION of Article VI. 

Mandatory Distribution means a distribution to a Participant that is made without the Participant’s 

consent and is made to the Participant before he attains the older of age 62 or his Normal Retirement 

Age. 

Multiemployer Act means the Multiemployer Pension Plan Amendments Act of 1980 as amended by 

the Deficit Reduction Act of 1984. 

Named Fiduciary means the person or persons who have authority to control and manage the 

operation and administration of the Plan. 

The Named Fiduciary is the Trustee. 

Normal Form means a straight life annuity. 

Normal Retirement Age means the older of age 62 or a Participant’s age on the date two years after 

his Entry Date. 

Normal Retirement Date means the earliest first day of the month on or after the date the Participant 

reaches his Normal Retirement Age. Unless otherwise provided in this Plan, a Participant's retirement 

benefits shall begin on his Normal Retirement Date if he has had a Severance from Employment on 

such date. Even if the Participant is an Employee on his Normal Retirement Date, he may choose to 

have his retirement benefit begin on such date. 

Off-Benefit Contributions means the portion of Employer Contributions designated by the Trustee that 

are not subject to any benefit accrual under Article IV or the determination of any other benefits under 

this Plan. Off-Benefit Contributions are subject to Code Section 4971(g)(2) (Pension Protection Act). 

See the EMPLOYER CONTRIBUTIONS SECTION of Article III. 

 

Parental Absence means an Employee's absence from work: 

(a) by reason of pregnancy of the Employee, 

(b) by reason of birth of a child of the Employee, 

(c) by reason of the placement of a child with the Employee in connection with adoption of such child 

by such Employee, or 

(d) for purposes of caring for such child for a period beginning immediately following such birth or 

placement. 

Participant means either an Active Participant or an Inactive Participant. 

Exhibit 13 Application Page 112
RESTATEMENT JANUARY 1, 2014 11 ARTICLE I (7-6466)-1

Period of Military Duty means, for an Employee 

(a) who served as a member of the armed forces of the United States, and 

(b) who was reemployed by a participating Employer at a time when the Employee had a right to 

reemployment in accordance with seniority rights as protected under Chapter 43 of Title 38 of the 

U.S. Code, 

the period of time from the date the Employee was first absent from active work for a participating 

Employer because of such military duty to the date the Employee was reemployed. 

Plan means the defined benefit plan set forth in this document, including any later amendments to it. 

Plan Administrator means the person or persons who administer the Plan. 

The Plan Administrator is the Trustee. 

Plan Year means a consecutive 12-month period beginning on a Yearly Date and ending on the day 

before the next Yearly Date. If the Yearly Date changes, the change will result in a short Plan Year. 

Present Value means the Actuarial Equivalent of another benefit, expressed as a single sum amount. 

 Qualified Joint and Survivor Annuity means, for a Participant who has a spouse, an immediate 

survivorship life annuity, where the survivorship percentage is 50% and the Contingent Annuitant is the 

Participant's spouse. A former spouse will be treated as the spouse to the extent provided under a 

qualified domestic relations order as described in Code Section 414(p). If a Participant does not have a 

spouse, the Qualified Joint and Survivor Annuity means the Normal Form. 

This Qualified Joint and Survivor Annuity shall be at least the Actuarial Equivalent of any form of benefit 

offered under the Plan. 

Qualified Military Service means any service in the uniformed services (as defined in Chapter 43 of 

Title 38 of the U.S. Code) by any individual if such individual is entitled to reemployment rights under 

such chapter with respect to such service. 

Qualified Preretirement Survivor Annuity means a straight life annuity payable to the surviving 

spouse of a Participant who dies before his Annuity Starting Date. Benefits shall be determined as if 

the Participant had a Severance from Employment on the date of his death (date he last had a 

Severance from Employment, if earlier) and survived to retire on the earliest date on or after the date of 

his death on which he could have elected to retire. The monthly benefit payable to the spouse shall be 

equal to the survivorship benefit that would have been payable to the spouse if the Participant retired 

under the Qualified Joint and Survivor Annuity on such date and died. If the Participant elects a 

survivorship annuity (where the survivorship percentage is at least 50% and the Contingent Annuitant is 

the Participant's spouse) and that is at least the Actuarial Equivalent of the Qualified Joint and Survivor 

Annuity, then such form shall be treated as the Qualified Joint and Survivor Annuity for purposes of 

determining the Qualified Preretirement Survivor Annuity. Such election must be a qualified election 

according to the provisions of the ELECTION PROCEDURES SECTION of Article VI. A former spouse 

will be treated as the surviving spouse to the extent provided under a qualified domestic relations order 

as described in Code Section 414(p). 

Exhibit 13 Application Page 113
RESTATEMENT JANUARY 1, 2014 12 ARTICLE I (7-6466)-1

Recency Test means, for all retirements on or after August 1, 2010, the service requirement that a 

Participant must satisfy to be eligible for an Early Retirement Date. Such Recency Test is satisfied if 

the Participant completes at least 400 Hours of Service in the calendar year of his Early Retirement 

Date or the calendar year prior to his Early Retirement Date. The Recency Test may also be satisfied if 

such Participant completes 600 Hours of Service in two of the last three calendar years prior to the year 

of his Early Retirement Date. 

Reentry Date means the date a former Active Participant reenters the Plan. See the ACTIVE 

PARTICIPANT SECTION of Article II. 

Retirement Date means the date a retirement benefit will begin and is a Participant's Early, Normal, or 

Late Retirement Date, as the case may be. 

Self-employed Individual means, with respect to any taxable year, an individual who has Earned 

Income for the taxable year (or who would have Earned Income but for the fact the trade or business for 

which this Plan is established did not have net profits for such taxable year). 

Severance from Employment means, except for purposes of the BENEFIT LIMITATION SECTION of 

Article IV, an Employee has ceased to be an Employee. An Employee does not have a Severance from 

Employment if, in connection with a change of employment, the Employee’s new employer maintains 

this Plan with respect to the Employee. The Plan Administrator shall determine if a Severance from 

Employment has occurred in accordance with the regulations that are applicable to such determination. 

Totally and Permanently Disabled means that a Participant 

(1) is disabled, as a result of sickness or injury, to the extent that he is completely prevented from 

performing any work, engaging in any occupation for wage or profit, 

(2) has been continuously disabled for 6 months, as determined by the Trustee, and 

(3) is eligible for a disability benefit under Title II of the Federal Social Security Act. For purposes of 

eligibility under this item (3), receipt of a Social Security Award Certificate providing approval of 

the disability type of benefit shall constitute such eligibility. 

Trust Agreement means an agreement or agreements of trust between each participating Employer 

and Union established for the purpose of holding and distributing the Trust Fund under the provisions of 

the Plan. The Trust Agreement may provide for the investment of all or any portion of the Trust Fund in 

the Annuity Contract or any other investment arrangement. 

Trust Fund means the total funds held under an applicable Trust Agreement. The term Trust Fund 

when used within a Trust Agreement shall mean only the funds held under that Trust Agreement. The 

Trust Fund shall be valued annually at current fair market value on the date used for computing plan 

costs for minimum funding purposes and, at the discretion of the Trustee, may be valued more 

frequently in a nondiscriminatory manner. The valuation shall take into consideration investment 

earnings credited, expenses charged, payments made and changes in the value of the assets held in 

the Trust Fund. 

Trustee means the Trustees designated in the applicable Trust Agreement. 

Union means Operative Plasterers and Cement Masons International Association, Local Union No. 82. 

Exhibit 13 Application Page 114
RESTATEMENT JANUARY 1, 2014 13 ARTICLE I (7-6466)-1

Vested Accrued Benefit means, on any date, the Participant’s Accrued Benefit resulting from 

Employer Contributions multiplied by his Vesting Percentage on such date. 

Vesting Break in Service means a Vesting Computation Period in which an Employee is credited with 

399 or fewer Hours of Service. An Employee incurs a Vesting Break in Service on the last day of a 

Vesting Computation Period in which he has a Vesting Break in Service. 

Vesting Computation Period means a consecutive 12-month period ending on each December 31. 

Vesting Percentage means the percentage used to determine that portion of a Participant's Accrued 

Benefit resulting from Employer Contributions which is nonforfeitable. 

A Participant's Vesting Percentage is shown in the following schedule opposite the number of whole 

years of his Vesting Service. 

VESTING 

SERVICE 

(whole years) 

VESTING 

PERCENTAGE 

Less than 5 0 

5 or more 100 

The Vesting Percentage for a Participant who is an Employee on or after the date he reaches Normal 

Retirement Age shall be 100%. 

However, for an Eligible Employee who became an Active Participant before January 1, 1985, the 

Vesting Percentage for such Participant shall be 100% on or after the date he reaches the earlier of 

Normal Retirement Age or Early Retirement Age. 

If the schedule used to determine a Participant's Vesting Percentage is changed, the new schedule 

shall not apply to a Participant unless he is credited with an Hour of Service on or after the date of the 

change and the Participant's nonforfeitable percentage on the day before the date of the change is not 

reduced under this Plan. The amendment provisions of the AMENDMENTS SECTION of Article X 

regarding changes in the computation of the Vesting Percentage shall apply. 

Vesting Service means one year of service for each Vesting Computation Period in which an Employee 

is credited with at least 400 Hours of Service. 

However, Vesting Service is modified as follows: 

Period of Military Duty included: 

A Period of Military Duty shall be included as service with a participating Employer to the extent it 

has not already been credited. For purposes of crediting Hours of Service during the Period of 

Military Duty, an Hour of Service shall be credited (without regard to the 501 Hour of Service 

limitation) for each hour an Employee would normally have been scheduled to work for a 

participating Employer during such period. 

If a Participant dies or becomes disabled (and such disability is determined to meet the definition 

of Totally and Permanently Disabled) while performing Qualified Military Service, such service 

shall be included as service with the Employer. 

Exhibit 13 Application Page 115
RESTATEMENT JANUARY 1, 2014 14 ARTICLE I (7-6466)-1

Yearly Date means January 1, 1976, and the same day of each following year. Yearly Dates before 

January 1, 1976, shall be determined under the provisions of the prior document. 

Years of Service means, except for purposes of the BENEFIT LIMITATION SECTION of Article IV, an 

Employee's Vesting Service disregarding any modifications that exclude service. 

Exhibit 13 Application Page 116
RESTATEMENT JANUARY 1, 2014 15 ARTICLE II (7-6466)-1

ARTICLE II

PARTICIPATION

SECTION 2.01--ACTIVE PARTICIPANT.

(a) An Employee shall first become an Active Participant (begin active participation in the Plan) on 

the earliest date on which he is an Eligible Employee. This date is his Entry Date. 

If the Plan’s eligibility requirements are changed, an Employee who was an Active Participant 

immediately prior to the effective date of the change is deemed to satisfy the new requirements 

and his Entry Date shall not change. 

Each Employee who was an Active Participant on the day before the effective date of this 

restatement (as determined in the Introduction) shall continue to be an Active Participant if he is 

still an Eligible Employee on such restatement effective date and his Entry Date shall not change. 

In the event an Employee who is not an Eligible Employee becomes an Eligible Employee, he 

shall become an Active Participant immediately if he has satisfied the eligibility requirements 

above and would have otherwise previously become an Active Participant had he met the 

definition of Eligible Employee. This date is his Entry Date. 

(b) An Inactive Participant shall again become an Active Participant (resume active participation in 

the Plan) on the date he again performs an Hour of Service as an Eligible Employee. This date is 

his Reentry Date. 

Upon again becoming an Active Participant, he shall cease to be an Inactive Participant. 

(c) A former Participant shall again become an Active Participant (resume active participation in the 

Plan) on the date he again performs an Hour of Service as an Eligible Employee. This date is his 

Reentry Date. 

There shall be no duplication of benefits for a Participant because of more than one period as an Active 

Participant. 

SECTION 2.02--INACTIVE PARTICIPANT.

An Active Participant shall become an Inactive Participant (stop accruing benefits) on the earliest of the 

following: 

(a) The date he ceases to be an Eligible Employee. 

(b) The effective date of complete termination of the Plan under Article VIII. 

(c) The date he incurs an Accrual Break in Service. 

An Employee or former Employee who was an Inactive Participant on the day before the effective date 

of this restatement (as determined in the Introduction) shall continue to be an Inactive Participant on such 

restatement effective date. Eligibility for any benefits payable to the Participant or on his behalf and the 

Exhibit 13 Application Page 117
RESTATEMENT JANUARY 1, 2014 16 ARTICLE II (7-6466)-1

amount of the benefits shall be determined according to the provisions of the prior documents, unless 

otherwise stated in this document or any subsequent documents. 

SECTION 2.03--CESSATION OF PARTICIPATION.

A Participant, whether active or inactive, shall cease to be a Participant on the earlier of the following: 

(a) The date of his death. 

(b) The date he receives a single sum distribution that is in lieu of all of his benefits under the Plan if 

his Vesting Percentage is 100%. 

An Inactive Participant shall also cease to be a Participant on the earliest date on which he is not 

entitled to a deferred monthly income under the VESTED BENEFITS SECTION of Article V. 

Exhibit 13 Application Page 118
RESTATEMENT JANUARY 1, 2014 17 ARTICLE III (7-6466)-1

ARTICLE III

CONTRIBUTIONS

SECTION 3.01--EMPLOYER CONTRIBUTIONS.

The amount of Employer Contributions shall meet or exceed the minimum funding standards of ERISA 

and the Code. 

The amount and timing of Employer Contributions shall be determined based on actuarial valuations 

and recommendations as to the amounts required to fund benefits under this Plan. Dividends, if any, declared 

under the Annuity Contract and forfeitures shall be applied to reduce future Employer Contributions. 

A portion of the Plan assets resulting from Employer Contributions (but not more than the original 

amount of those Contributions) may be returned if the Employer Contributions are made because of a mistake 

of fact or are more than the amount deductible under Code Section 404 (excluding any amount that is not 

deductible because the Plan is disqualified). The amount involved must be returned to a participating 

Employer within one year after the date the Employer Contributions are made by mistake of fact or the date 

the deduction is disallowed, whichever applies. Except as provided under this paragraph and in Article VIII, 

the assets of the Plan shall never be used for the benefit of any participating Employer and are held for the 

exclusive purpose of providing benefits to Participants and their Beneficiaries and for defraying reasonable 

expenses of administering the Plan. 

The Trustee may designate that Employers shall make Off-Benefit Contributions. Such Employer 

Contributions are not made on behalf of any specific Employee and are not made for the purpose of providing 

pension benefits to any specific Employee, but are made only for purposes of improving the funding status of 

the Plan and for the benefit of all Participants of the Plan. All Off-Benefit Contributions are not included in the 

calculation of any Accrued Benefit or other benefits under the Plan. Effective for all Hours of Service worked 

on or after April 1, 2013, all Off-Benefit Contributions are not subject to transfer under any reciprocity 

agreement with another plan. 

SECTION 3.02--INVESTMENT OF CONTRIBUTIONS.

The handling of Contributions and Plan assets is governed by the provisions of the Trust Agreement 

and any other relevant document, such as an Annuity Contract. 

The Named Fiduciary may delegate to the Investment Manager investment direction for Plan assets. 

All Contributions are forwarded by a participating Employer to (i) the Trustee to be deposited in the 

Trust Fund or otherwise invested by the Trustee in accordance with the relevant documents; or (ii) the Insurer 

to be deposited under the Annuity Contract, as applicable. 

SECTION 3.03--FUNDING POLICY.

At least annually, the Named Fiduciary shall review all pertinent Employee information and Plan data in 

order to establish the Plan's funding policy and to determine appropriate methods of carrying out the Plan's 

objectives. The Named Fiduciary shall inform the Trustee and any Investment Manager of the Plan's shortterm and long-term financial needs so the investment policy can be coordinated with the Plan's financial 

requirements. 

Exhibit 13 Application Page 119
RESTATEMENT JANUARY 1, 2014 18 ARTICLE III (7-6466)-1

SECTION 3.04--PURCHASE OF ANNUITIES.

Effective on and after August 1, 2013, while the Plan is in critical status under the Pension Protection 

Act, the Plan will not purchase an annuity or annuities for any Participant or group of Participants. 

Exhibit 13 Application Page 120
RESTATEMENT JANUARY 1, 2014 19 ARTICLE IV (7-6466)-1

ARTICLE IV

RETIREMENT BENEFITS

SECTION 4.01--ACCRUED BENEFIT.

An Active Participant's monthly Accrued Benefit as of any date, subject to the modifications below, will 

be equal to the sum of the following: 

(a) $7.50 multiplied by his Past Accrual Service. 

(b) 2% of the total Employer Contributions actually made on his behalf for each year of his Future 

Accrual Service before January 1, 1978. 

(c) 2.5% of the total Employer Contributions actually made on his behalf for each year of his Future 

Accrual Service on and after January 1, 1978 and before January 1, 1990. 

(d) 3% of the total Employer Contributions actually made on his behalf for each year of Future 

Accrual Service on and after January 1, 1990 and before January 1, 2008. 

(e) 2% of the total Employer Contributions actually made on his behalf for each year of his Future 

Accrual Service on and after January 1, 2008 and before January 1, 2009. 

(f) 1% of the total Employer Contributions actually made on his behalf for each year of his Future 

Accrual Service on and after January 1, 2009. 

(g) $5.00 multiplied by his Accrual Service earned before December 1, 2010. 

(h) $2.50 multiplied by his Future Accrual Service earned before December 1, 2010. 

The Accrued Benefit of a Participant who dies or becomes disabled (and such disability is determined to 

meet the definition of Totally and Permanently Disabled) while performing Qualified Military Service with 

respect to a participating Employer maintaining the Plan shall be determined as if the Participant has 

resumed employment in accordance with the individual’s reemployment rights under Chapter 43 of Title 

38 of the United States Code, on the day preceding death or disability (as the case may be) and 

terminated employment on the actual date of death or disability, in accordance with Code Section 

401(a)(37) and any subsequent guidance. 

SECTION 4.02--DISREGARD OF ACCRUED BENEFIT. 

If a Participant receives a single sum payment equal to the Present Value of his entire Vested Accrued 

Benefit, his entire Accrued Benefit as of the date of the distribution shall be disregarded. 

If the Present Value of a Participant’s Vested Accrued Benefit was zero and he was deemed to have 

received a distribution of the Present Value of his entire Vested Accrued Benefit, and he again becomes an 

Eligible Employee before the end of the first period of five consecutive Vesting Breaks in Service that begin 

after the date of the deemed distribution, upon the date he again performs an Hour of Service as an Eligible 

Employee, the Employer derived Accrued Benefit (including all optional forms of benefits and subsidies 

Exhibit 13 Application Page 121
RESTATEMENT JANUARY 1, 2014 20 ARTICLE IV (7-6466)-1

relating to such benefits) shall be restored to the amount of such Accrued Benefit on the date of the deemed 

distribution. 

If a Participant receives a single sum payment that is less than the Present Value of his entire Vested 

Accrued Benefit, a portion of his Vested Accrued Benefit as of the date of the distribution shall be disregarded. 

This portion shall be determined by multiplying his entire Vested Accrued Benefit as of the date of such 

distribution by the ratio of (i) the single sum payment to (ii) the Present Value of such Vested Accrued Benefit. 

Such Participant shall not have a right to restore his Employer derived Accrued Benefit. 

SECTION 4.03--BENEFIT LIMITATION.

Benefits under the Plan shall be limited in accordance with Code Section 415 and the regulations 

thereunder. The limitations of this section shall apply in Limitation Years beginning on or after July 1, 2007, 

except as otherwise provided herein. 

(a) Definitions. For the purpose of determining the benefit limitation set forth in this section, the 

following terms are defined: 

 Annual Benefit means a benefit that is payable annually in the form of a Straight Life Annuity. 

Except as provided below, where a benefit is payable in a form other than a Straight Life Annuity, 

the benefit shall be adjusted to an actuarially equivalent Straight Life Annuity that begins at the 

same time as such other form of benefit and is payable on the first day of each month, before 

applying the limitations of this section. For a Participant who has or will have distributions 

commencing at more than one Annuity Starting Date, the Annual Benefit shall be determined as 

of each such Annuity Starting Date (and shall satisfy the limitations of this section as of each 

such date), actuarially adjusting for past and future distributions of benefits commencing at the 

other Annuity Starting Dates. For this purpose, the determination of whether a new starting date 

has occurred shall be made without regard to section 1.401(a)-20, Q&A 10(d), and with regard to 

section 1.415(b)-1(b)(1)(iii)(B) and (C) of the regulations. 

No actuarial adjustment to the benefit shall be made for (i) survivor benefits payable to a 

surviving spouse under a qualified joint and survivor annuity to the extent such benefits would not 

be payable if the Participant’s benefit were paid in another form; (ii) benefits that are not directly 

related to retirement benefits (such as a qualified disability benefit, preretirement incidental death 

benefits, and post-retirement medical benefits); or (iii) the inclusion in the form of benefit of an 

automatic benefit increase feature, provided the form of benefit is not subject to Code Section 

417(e)(3) and would otherwise satisfy the limitations of this section, and the Plan provides that 

the amount payable under the form of benefit in any Limitation Year shall not exceed the limits of 

this section applicable at the Annuity Starting Date, as increased in subsequent years pursuant to 

Code Section 415(d). For this purpose, an automatic benefit increase feature is included in a 

form of benefit if the form of benefit provides for automatic periodic increases to the benefits paid 

in that form. 

The determination of the Annual Benefit shall take into account Social Security supplements 

described in Code Section 411(a)(9) and benefits transferred from another defined benefit plan, 

other than transfers of distributable benefits pursuant to section 1.411(d)-4, Q&A-3(c), of the 

regulations, but shall disregard benefits attributable to employee contributions or rollover 

contributions. 

Exhibit 13 Application Page 122
RESTATEMENT JANUARY 1, 2014 21 ARTICLE IV (7-6466)-1

Effective for distributions in Plan Years beginning after December 31, 2003, the determination of 

actuarial equivalence of forms of benefit other than a Straight Life Annuity shall be made in 

accordance with (1) or (2) below: 

(1) Benefit Forms Not Subject to Code Section 417(e)(3): The Straight Life Annuity that is 

actuarially equivalent to the Participant’s form of benefit shall be determined under this (1) 

if the form of the Participant’s benefit is either (i) a nondecreasing annuity (other than a 

Straight Life Annuity) payable for a period of not less than the life of the Participant (or, in 

the case of a qualified preretirement survivor annuity, the life of the surviving spouse), or 

(ii) an annuity that decreases during the life of the Participant merely because of (a) the 

death of the survivor annuitant (but only if the reduction is not below 50% of the benefit 

payable before the death of the survivor annuitant), or (b) the cessation or reduction of 

Social Security supplements or qualified disability payments (as defined in Code Section 

401(a)(11)). 

(i) Limitation Years beginning before July 1, 2007. For Limitation Years beginning 

before July 1, 2007, the actuarially equivalent Straight Life Annuity is equal to the 

annual amount of the Straight Life Annuity commencing at the same Annuity Starting 

Date that has the same actuarial present value as the Participant’s form of benefit 

computed using whichever of the following produces the greater annual amount: 

A. the interest rate and the mortality table (or other tabular factor) specified in 

the Plan for adjusting benefits in the same form; and 

B. a 5 percent interest rate assumption and the Applicable Mortality Table for 

that Annuity Starting Date. 

(ii) Limitation Years beginning on and after July 1, 2007. For Limitation Years 

beginning on and after July 1, 2007, the actuarially equivalent Straight Life Annuity 

is equal to the greater of: 

A. the annual amount of the Straight Life Annuity (if any) payable to the 

Participant under the Plan commencing at the same Annuity Starting Date as 

the Participant’s form of benefit; and 

B. the annual amount of the Straight Life Annuity commencing at the same 

Annuity Starting Date that has the same actuarial present value as the 

Participant’s form of benefit, computed using a 5 percent interest rate 

assumption and the Applicable Mortality Table for that Annuity Starting Date. 

(2) Benefit Forms Subject to Code Section 417(e)(3): The Straight Life Annuity that is 

actuarially equivalent to the Participant’s form of benefit shall be determined under this (2) 

if the form of the Participant’s benefit is other than a benefit form described in (1) above. 

In this case, the actuarially equivalent Straight Life Annuity shall be determined as follows: 

(i) Annuity Starting Date in Plan Years Beginning After 2005. If the Annuity Starting 

Date of the Participant’s benefit occurs during a Plan Year beginning after 2005, the 

actuarially equivalent Straight Life Annuity is equal to the greatest of: 

A. the annual amount of the Straight Life Annuity commencing at the same 

Annuity Starting Date that has the same actuarial present value as the 

Exhibit 13 Application Page 123
RESTATEMENT JANUARY 1, 2014 22 ARTICLE IV (7-6466)-1

Participant’s form of benefit, computed using the interest rate and the 

mortality table (or other tabular factor) specified in the Plan for adjusting 

benefits in the same form; 

B. the annual amount of the Straight Life Annuity commencing at the same 

Annuity Starting Date that has the same actuarial present value as the 

Participant’s form of benefit, computed using a 5.5 percent interest rate 

assumption and the Applicable Mortality Table; and 

C. the annual amount of the Straight Life Annuity commencing at the same 

Annuity Starting Date that has the same actuarial present value as the 

Participant’s form of benefit, computed using the Applicable Interest Rate and 

the Applicable Mortality Table, divided by 1.05. 

However, for a participating Employer that is an eligible employer as defined in 

Code Section 408(p)(2)(C)(i), the actuarially equivalent Straight Life Annuity is equal 

to the greater of A. or B. above. 

(ii) Annuity Starting Date in Plan Years Beginning In 2004 and 2005. If the Annuity 

Starting Date of the Participant’s form of benefit is in a Plan Year beginning in 2004 

or 2005, the actuarially equivalent Straight Life Annuity is equal to the annual 

amount of the Straight Life Annuity commencing at the same Annuity Starting Date 

that has the same actuarial present value as the Participant’s form of benefit, 

computed using whichever of the following produces the greater annual amount: 

A. the interest rate and the mortality table (or other tabular factor) specified in 

the Plan for adjusting benefits in the same form; and 

B. a 5.5 percent interest rate assumption and the Applicable Mortality Table. 

If the Annuity Starting Date of the Participant’s benefit is on or after the first day of 

the first Plan Year beginning in 2004 and before December 31, 2004, the application 

of this (2)(ii) shall not cause the amount payable under the Participant’s form of 

benefit to be less than the benefit calculated under the Plan taking into account the 

limitations of this section, except that the actuarially equivalent Straight Life Annuity 

is equal to the annual amount of the Straight Life Annuity commencing at the same 

Annuity Starting Date that has the same actuarial present value as the Participant’s 

form of benefit, computed using whichever of the following produces the greatest 

annual amount: 

C. the interest rate and the mortality table (or other tabular factor) specified in 

the Plan for adjusting benefits in the same form (as provided under the terms 

of the Plan in effect as of the date of distribution); 

D. the Applicable Interest Rate and the Applicable Mortality Table(as provided 

under the terms of the Plan in effect as of the date of distribution); and 

E. the Applicable Interest Rate (as in effect on the last day of the last Plan Year 

beginning before January 1, 2004, under the provisions of the Plan then 

adopted and in effect) and the Applicable Mortality Table. 

Exhibit 13 Application Page 124
RESTATEMENT JANUARY 1, 2014 23 ARTICLE IV (7-6466)-1

 Defined Benefit Dollar Limitation means, effective for Limitation Years ending after 

December 31, 2001, $160,000, automatically adjusted under Code Section 415(d), effective 

January 1 of each year, as published in the Internal Revenue Bulletin, and payable in the form of 

a Straight Life Annuity. The new limitation shall apply to Limitation Years ending with or within 

the calendar year of the date of the adjustment, but a Participant’s benefits shall not reflect the 

adjusted limit prior to January 1 of that calendar year. The automatic annual adjustment of the 

Defined Benefit Dollar Limitation under Code Section 415(d) shall not apply to Participants who 

have had a Severance from Employment. 

 Limitation Year means the consecutive 12-month period ending on the last day of each Plan 

Year, including corresponding consecutive 12-month periods before the effective date of the 

Plan. If the Limitation Year is other than a calendar year, execution of this Plan (or any 

amendment to this Plan changing the Limitation Year) constitutes the participating Employer’s 

adoption of a written resolution electing the Limitation Year. If the Limitation Year is amended to 

a different consecutive 12-month period, the new Limitation Year must begin on a date within the 

Limitation Year in which the amendment is made. 

 Maximum Permissible Benefit means the Defined Benefit Dollar Limitation (adjusted where 

required, as provided below). 

(1) Adjustment for Less Than 10 Years of Participation or Years of Service: If the Participant 

has less than 10 Years of Participation in the Plan, the Defined Benefit Dollar Limitation 

shall be multiplied by a fraction, (i) the numerator of which is the number of Years of 

Participation (or part thereof, but not less than one year) in the Plan, and (ii) the 

denominator of which is 10. 

(2) Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement Before Age 62 

or After Age 65: Effective for benefits commencing in Limitation Years ending after 

December 31, 2001, the Defined Benefit Dollar Limitation shall be adjusted if the Annuity 

Starting Date of the Participant’s benefit is before age 62 or after age 65. If the Annuity 

Starting Date is before age 62, the Defined Benefit Dollar Limitation shall be adjusted 

under (2)(i) below, as modified by (2)(iii) below. If the Annuity Starting Date is after age 

65, the Defined Benefit Dollar Limitation shall be adjusted under (2)(ii) below, as modified 

by (2)(iii) below. 

(i) Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement Before 

Age 62: 

A. Limitation Years Beginning Before July 1, 2007. If the Annuity Starting Date 

for the Participant’s benefit is prior to age 62 and occurs in a Limitation Year 

beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the 

Participant’s Annuity Starting Date is the annual amount of a benefit payable 

in the form of a Straight Life Annuity commencing at the Participant’s Annuity 

Starting Date that is the actuarial equivalent of the Defined Benefit Dollar 

Limitation (adjusted under (1) above for Years of Participation less than ten, if 

required) with actuarial equivalence computed using whichever of the 

following produces the smaller annual amount: (i) the interest rate and the 

mortality table (or other tabular factor) specified in the Plan for purposes of 

determining actuarial equivalence for early retirement benefits; or (ii) a 5 

percent interest rate assumption and the Applicable Mortality Table. To the 

extent the Plan does not specify an interest rate and mortality table (or other 

Exhibit 13 Application Page 125
RESTATEMENT JANUARY 1, 2014 24 ARTICLE IV (7-6466)-1

tabular factor) or for ages for which no tabular factor is specified, a 5 percent 

interest rate and the Applicable Mortality Table shall be used to determine 

actuarial equivalence. 

B. Limitation Years Beginning On or After July 1, 2007. 

I. Plan Does Not Have Immediately Commencing Straight Life Annuity 

Payable at Both Age 62 and the Age of Benefit Commencement. If the 

Annuity Starting Date for the Participant’s benefit is prior to age 62 and 

occurs in a Limitation Year beginning on or after July 1, 2007, and the 

Plan does not have an immediately commencing Straight Life Annuity 

payable at both age 62 and the age of benefit commencement, the 

Defined Benefit Dollar Limitation for the Participant’s Annuity Starting 

Date is the annual amount of a benefit payable in the form of a Straight 

Life Annuity commencing at the Participant’s Annuity Starting Date that 

is the actuarial equivalent of the Defined Benefit Dollar Limitation 

(adjusted under (1) above for Years of Participation less than ten, if 

required) with actuarial equivalence computed using a 5 percent 

interest rate assumption and the Applicable Mortality Table for the 

Annuity Starting Date (and expressing the Participant’s age based on 

completed calendar months as of the Annuity Starting Date). 

II. Plan Has Immediately Commencing Straight Life Annuity Payable at 

Both Age 62 and the Age of Benefit Commencement. If the Annuity 

Starting Date for the Participant’s benefit is prior to age 62 and occurs 

in a Limitation Year beginning on or after July 1, 2007, and the Plan 

has an immediately commencing Straight Life Annuity payable at both 

age 62 and the age of benefit commencement, the Defined Benefit 

Dollar Limitation for the Participant’s Annuity Starting Date is the lesser 

of the limitation determined under (2)(i)B.I. above and the Defined 

Benefit Dollar Limitation (adjusted under (1) above for Years of 

Participation less than ten, if required) multiplied by the ratio of the 

annual amount of the immediately commencing Straight Life Annuity 

under the Plan at the Participant’s Annuity Starting Date to the annual 

amount of the immediately commencing Straight Life Annuity under the 

Plan at age 62, both determined without applying the limitations of this 

section. 

C. The provisions of this (i) shall be modified as provided in Code Section 

415(b)(9) for Participants who are commercial airline pilots. 

D. Notwithstanding any other provision of this (i), the age adjusted Defined 

Benefit Dollar Limitation applicable to a Participant does not decrease on 

account of an increase in age or the performance of additional service. 

(ii) Adjustment of Defined Benefit Dollar Limitation for Benefit Commencement After 

Age 65: 

A. Limitation Years Beginning Before July 1, 2007. If the Annuity Starting Date 

for the Participant’s benefit is after age 65 and occurs in a Limitation Year 

beginning before July 1, 2007, the Defined Benefit Dollar Limitation for the 

Exhibit 13 Application Page 126
RESTATEMENT JANUARY 1, 2014 25 ARTICLE IV (7-6466)-1

Participant’s Annuity Starting Date is the annual amount of a benefit payable 

in the form of a Straight Life Annuity commencing at the Participant’s Annuity 

Starting Date that is the actuarial equivalent of the Defined Benefit Dollar 

Limitation (adjusted under (1) above for Years of Participation less than ten, if 

required) with actuarial equivalence computed using whichever of the 

following produces the smaller annual amount: (i) the interest rate and the 

mortality table (or other tabular factor) specified in the Plan for purposes of 

determining actuarial equivalence for late retirement benefits; or (ii) a 5 

percent interest rate assumption and the Applicable Mortality Table. 

B. Limitation Years Beginning On or After July 1, 2007. 

I. Plan Does Not Have Immediately Commencing Straight Life Annuity 

Payable at Both Age 65 and the Age of Benefit Commencement. If the 

Annuity Starting Date for the Participant’s benefit is after age 65 and 

occurs in a Limitation Year beginning on or after July 1, 2007, and the 

Plan does not have an immediately commencing Straight Life Annuity 

payable at both age 65 and the age of benefit commencement, the 

Defined Benefit Dollar Limitation at the Participant’s Annuity Starting 

Date is the annual amount of a benefit payable in the form of a Straight 

Life Annuity commencing at the Participant’s Annuity Starting Date that 

is the actuarial equivalent of the Defined Benefit Dollar Limitation 

(adjusted under (1) above for Years of Participation less than ten, if 

required) with actuarial equivalence computed using a 5 percent 

interest rate assumption and the Applicable Mortality Table for that 

Annuity Starting Date (and expressing the Participant’s age based on 

completed calendar months as of the Annuity Starting Date). 

II. Plan Has Immediately Commencing Straight Life Annuity Payable at 

Both Age 65 and the Age of Benefit Commencement. If the Annuity 

Starting Date for the Participant’s benefit is after age 65 and occurs in 

a Limitation Year beginning on or after July 1, 2007, and the Plan has 

an immediately commencing Straight Life Annuity payable at both age 

65 and the age of benefit commencement, the Defined Benefit Dollar 

Limitation at the Participant’s Annuity Starting Date is the lesser of the 

limitation determined under (2)(ii)B.I. above and the Defined Benefit 

Dollar Limitation (adjusted under (1) above for Years of Participation 

less than ten, if required) multiplied by the ratio of the annual amount of 

the adjusted immediately commencing Straight Life Annuity under the 

Plan at the Participant’s Annuity Starting Date to the annual amount of 

the adjusted immediately commencing Straight Life Annuity under the 

Plan at age 65, both determined without applying the limitations of this 

section. For this purpose, the adjusted immediately commencing 

Straight Life Annuity under the Plan at the Participant’s Annuity 

Starting Date is the annual amount of such annuity payable to the 

Participant, computed disregarding the Participant’s accruals after age 

65 but including actuarial adjustments even if those actuarial 

adjustments are used to offset accruals; and the adjusted immediately 

commencing Straight Life Annuity under the Plan at age 65 is the 

annual amount of such annuity that would be payable under the Plan to 

Exhibit 13 Application Page 127
RESTATEMENT JANUARY 1, 2014 26 ARTICLE IV (7-6466)-1

a hypothetical Participant who is age 65 and has the same accrued 

benefit as the Participant. 

(iii) Notwithstanding the other requirements of this (2), in adjusting the Defined Benefit 

Dollar Limitation for the Participant’s Annuity Starting Date under (2)(i)A., (2)(i)B.I., 

(2)(ii)A., and (2)(ii)B.I. above, no adjustment shall be made to the Defined Benefit 

Dollar Limitation to reflect the probability of a Participant’s death between the 

Annuity Starting Date and age 62, or between age 65 and the Annuity Starting Date, 

as applicable, if benefits are not forfeited upon the death of the Participant prior to 

the Annuity Starting Date. To the extent benefits are forfeited upon death before the 

Annuity Starting Date, such an adjustment shall be made. For this purpose, no 

forfeiture shall be treated as occurring upon the Participant’s death if the Plan does 

not charge Participants for providing a qualified preretirement survivor annuity, as 

defined in Code Section 417(c), upon the Participant’s death. 

(3) Minimum benefits permitted: Notwithstanding anything else in this definition to the 

contrary, the benefit otherwise accrued or payable to a Participant under this Plan shall be 

deemed not to exceed the Maximum Permissible Benefit if: 

(i) the retirement benefits payable for a Limitation Year under any form of benefit with 

respect to such Participant under this Plan and under all other defined benefit plans 

(without regard to whether a plan has been terminated) ever maintained by a 

participating Employer that were maintained as a result of collective bargaining 

involving the same employee representative as under this plan do not exceed 

$10,000 multiplied by a fraction, (1) the numerator of which is the Participant’s 

number of Years of Service (or part thereof, but not less than one year) with a 

participating Employer (not to exceed ten), and (2) the denominator of which is 10; 

and 

(ii) the participating Employer has not at any time maintained a defined contribution 

plan in which the Participant participated, that was maintained as a result of 

collective bargaining involving the same employee representative as under this plan 

(for this purpose, mandatory employee contributions under a defined benefit plan, 

individual medical benefit accounts under Code Section 401(h), and accounts for 

post-retirement medical benefits established under Code Section 419A(d)(1) are not 

considered a separate defined contribution plan). 

 Severance from Employment means an employee has ceased to be an employee of all 

participating Employers. An employee does not have a Severance from Employment if, in 

connection with a change of employment, the employee’s new employer maintains the plan with 

respect to the employee. 

 Straight Life Annuity means an annuity payable in equal installments for the life of the 

Participant that terminates upon the Participant’s death. 

 Year of Participation means one year (computed to fractional parts of a year) for each Accrual 

Computation Period for which the following conditions are met: 

(1) the Participant is credited with at least the number of Hours of Service for benefit accrual 

purposes, required under the terms of the Plan in order to accrue a benefit for the Accrual 

Computation Period, and 

Exhibit 13 Application Page 128
RESTATEMENT JANUARY 1, 2014 27 ARTICLE IV (7-6466)-1

(2) the Participant is included as a Participant under the eligibility provisions of the Plan for at 

least one day of the Accrual Computation Period. 

If these two conditions are met, the portion of a Year of Participation credited to the Participant 

shall equal the amount of Accrual Service credited to the Participant for such Accrual 

Computation Period. A Participant who is totally and permanently disabled within the meaning of 

Code Section 415(c)(3)(C)(i) for an Accrual Computation Period shall receive a Year of 

Participation with respect to that period. In addition, for a Participant to receive a Year of 

Participation (or part thereof) for an Accrual Computation Period, the Plan must be established no 

later than the last day of such Accrual Computation Period. In no event will more than one Year 

of Participation be credited for any 12-month period. 

 Year of Service means, for purposes of the definition of Maximum Permissible Benefit, one year 

(computed to fractional parts of a year) for each Accrual Computation Period for which the 

Participant is credited with at least the number of Hours of Service for benefit accrual purposes, 

required under the terms of the Plan in order to accrue a benefit for the Accrual Computation 

Period, taking into account only service with a participating Employer. 

(b) The Annual Benefit otherwise payable to a Participant at any time will not exceed the Maximum 

Permissible Benefit. If the benefit the Participant would otherwise accrue in a Limitation Year 

would produce an Annual Benefit in excess of the Maximum Permissible Benefit, the benefit shall 

be limited (or the rate of accrual reduced) to the extent necessary so that the benefit does not 

exceed the Maximum Permissible Benefit. 

(c) If the Participant is, or has ever been, a participant in another qualified defined benefit plan 

(without regard to whether the plan has been terminated) maintained by a participating Employer, 

the sum of the Participant’s Annual Benefits from all such plans may not exceed the Maximum 

Permissible Benefit. Where the Participant’s employer-provided benefits under all such defined 

benefit plans (determined as of the same age) would exceed the Maximum Permissible Benefit 

applicable at that age, the benefit shall be limited (or the rate of accrual reduced) in the plan most 

recently established to the extent necessary so that the sum of the Participant’s Annual Benefits 

from all such plan(s) does not exceed the Maximum Permissible Benefit. 

(d) The application of the provisions of this section shall not cause the Maximum Permissible Benefit 

for any Participant to be less than the Participant’s accrued benefit under all the defined benefit 

plans of a participating Employer as of the end of the last Limitation Year beginning before July 1, 

2007 under the provisions of the plans that were both adopted and in effect before April 5, 2007. 

The preceding sentence applies only if the provisions of such defined benefit plans that were 

both adopted and in effect before April 5, 2007 satisfied the applicable requirements of statutory 

provisions, regulations, and other published guidance relating to Code Section 415 in effect as of 

the end of the last Limitation Year beginning before July 1, 2007, as described in section 

1.415(a)-1(g)(4) of the regulations. 

(e) The limitations of this section shall be determined and applied taking into account the rules in (f) 

below. 

(f) Other Rules. 

(1) Benefits under Terminated Plans. If a defined benefit plan maintained by a participating 

Employer has terminated with sufficient assets for the payment of benefit liabilities of all 

plan participants and a participant in the plan has not yet commenced benefits under the 

Exhibit 13 Application Page 129
RESTATEMENT JANUARY 1, 2014 28 ARTICLE IV (7-6466)-1

plan, the benefits provided pursuant to the annuities purchased to provide the participant’s 

benefits under the terminated plan at each possible annuity starting date shall be taken 

into account in applying the limitations of this section. If there are not sufficient assets for 

the payment of all participants’ benefit liabilities, the benefits taken into account shall be 

the benefits that are actually provided to the participant under the terminated plan. 

(2) Benefits Transferred From the Plan. If a participant’s benefits under a defined benefit plan 

maintained by a participating Employer are transferred to another defined benefit plan 

maintained by a participating Employer and the transfer is not a transfer of distributable 

benefits pursuant to section 1.411(d)-4, Q&A-3(c) of the regulations, the transferred 

benefits are not treated as being provided under the transferor plan (but are taken into 

account as benefits provided under the transferee plan). If a participant’s benefits under a 

defined benefit plan maintained by a participating Employer are transferred to another 

defined benefit plan that is not maintained by a participating Employer and the transfer is 

not a transfer of distributable benefits pursuant to section 1.411(d)-4, Q&A-3(c), of the 

regulations, the transferred benefits are treated by a participating Employer’s plan as if 

such benefits were provided under annuities purchased to provide benefits under a plan 

maintained by a participating Employer that terminated immediately prior to the transfer 

with sufficient assets to pay all participants’ benefit liabilities under the plan. If a 

participant’s benefits under a defined benefit plan maintained by a participating Employer 

are transferred to another defined benefit plan in a transfer of distributable benefits 

pursuant to section 1.411(d)-4, Q&A-3(c), of the regulations, the amount transferred is 

treated as a benefit paid from the transferor plan. 

(3) Formerly Affiliated Plans of the Employer. A Formerly Affiliated Plan of the Employer shall 

be treated as a plan maintained by a participating Employer, but the Formerly Affiliated 

Plan shall be treated as if it had terminated immediately prior to the cessation of affiliation 

with sufficient assets to pay participants’ benefit liabilities under the plan and had 

purchased annuities to provide benefits. 

(4) Special Rules. The limitations of this section shall be determined and applied taking into 

account the rules in section 1.415(f)-1(d), (e), and (h) of the regulations. 

(5) Aggregation with Multiemployer Plans. The benefits under this plan are not aggregated 

with any other multiemployer plans as defined in Code Section 414(f). 

(6) Aggregation with Plans that are not Multiemployer Plans. 

(i) If a participating Employer also maintains a plan that is not a multiemployer plan, as 

defined in Code Section 414(f), only the benefits under this plan that are provided by 

the participating Employer are aggregated with benefits under the participating 

Employer’s plans that are not multiemployer plans. 

(ii) If a participating Employer maintains a plan that is not a multiemployer plan as 

defined in Code Section 414(f), such plans are not aggregated for purposes of 

applying the compensation limit of Code Section 415(b)(1)(B). 

SECTION 4.04--AMOUNT OF BENEFIT AT RETIREMENT.

The amount of retirement benefit to be provided under the Normal Form for an Active Participant on his 

Retirement Date shall be determined according to the provisions of this section. The monthly retirement 

Exhibit 13 Application Page 130
RESTATEMENT JANUARY 1, 2014 29 ARTICLE IV (7-6466)-1

benefit shall not decrease after the Participant's Retirement Date due to any increase in Social Security 

benefits that occurs after he has a Severance from Employment. 

Normal Retirement Date. An Active Participant’s retirement benefit on his Normal Retirement Date shall 

be equal to his Accrued Benefit on such date. 

Early Retirement Date. An Active Participant’s retirement benefit on his Early Retirement Date shall be 

equal to his Accrued Benefit on such date, multiplied by the factor shown below corresponding to the number 

of years his Early Retirement Date precedes his Normal Retirement Date. 

NUMBER OF YEARS 

EARLY RETIREMENT DATE 

PRECEDES NORMAL 

RETIREMENT DATE FACTOR 

 

1 .97 

2 .94 

3 .91 

4 .88 

5 .85 

6 .80 

7 .75 

8 .70 

9 .65 

10 .60 

The above factors shall be prorated for a partial year (counting a partial month as a complete month). 

Early Retirement Date. For all retirements on or after August 1, 2010, an Active Participant’s retirement 

benefit on his Early Retirement Date shall be equal to a percentage of his Accrued Benefit on such date. The 

percentage of his Accrued Benefit is based on his tier eligibility on his Early Retirement Date and is shown in 

the applicable table below. 

 

AGE AT 

EARLY RETIREMENT DATE PERCENTAGE OF 

UNDER TIER 1 ELIGIBILITY ACCRUED BENEFIT 

 

62 100.0% 

61 97.0 

60 94.0 

59 91.0 

58 88.0 

57 85.0 

56 77.5 

55 70.0 

Exhibit 13 Application Page 131
RESTATEMENT JANUARY 1, 2014 30 ARTICLE IV (7-6466)-1

AGE AT 

EARLY RETIREMENT DATE PERCENTAGE OF 

UNDER TIER 2 ELIGIBILITY ACCRUED BENEFIT 

 

62 100.0% 

61 95.0 

60 90.0 

59 85.0 

58 80.0 

57 75.0 

AGE AT 

EARLY RETIREMENT DATE PERCENTAGE OF 

UNDER TIER 3 ELIGIBILITY ACCRUED BENEFIT 

 

62 100.0% 

61 90.7 

60 82.3 

59 74.9 

58 68.2 

57 62.2 

The above percentages shall be prorated for a partial year (counting a partial month as a complete 

month). 

Late Retirement Date. An Active Participant’s retirement benefit on his Late Retirement Date shall be 

equal to the greatest of (a), (b), or (c) below: 

(a) His Accrued Benefit on his Late Retirement Date. 

(b) His Accrued Benefit on his Normal Retirement Date, multiplied by the factor shown below 

corresponding to the number of years his Late Retirement Date follows his Normal Retirement 

Date. 

NUMBER OF YEARS 

LATE RETIREMENT DATE 

FOLLOWS NORMAL 

RETIREMENT DATE FACTOR 

 

1 1.0600 

2 1.1200 

3 1.1900 

4 1.2600 

5 1.3400 

6 1.4200 

7 1.5000 

8 1.5900 

9 1.6900 

10 1.7900 

Exhibit 13 Application Page 132
RESTATEMENT JANUARY 1, 2014 31 ARTICLE IV (7-6466)-1

 The above factors shall be prorated for a partial year (counting a partial month as a complete 

month). Factors for years beyond 10 shall be determined using a consistently applied reasonable 

actuarially equivalent method. 

(c) This (c) applies only to a Participant whose Late Retirement Date occurs after the April 1 

following the calendar year in which he attains age 70 1/2 (January 1, 1997, if later). Such 

Participant’s retirement benefit will be adjusted to take into account the period after such date in 

which the Participant was not receiving his retirement benefit. 

 The amount in this (c) shall be equal to the retirement benefit that would have been paid on such 

date (determined as if his Late Retirement Date had occurred on such date) multiplied by the 

factor in (b) above for one year past Normal Retirement Date, prorated for a partial year based on 

the number of months in the period (counting a partial month as a complete month). 

 If the Participant’s Late Retirement Date occurs after the first Yearly Date following such date, the 

amount in this (c) shall be equal to the retirement benefit that would have been paid on such 

Yearly Date, multiplied by the factor in (b) above for one year past Normal Retirement Date, 

prorated for a partial year based on the number of months since such Yearly Date (counting a 

partial month as a complete month). 

 The amount in this (c) shall be redetermined after each subsequent Yearly Date based on the 

retirement benefit that would have been paid on such Yearly Date (determined as if his Late 

Retirement Date has occurred on such Yearly Date) multiplied by the factor in (b) above for one 

year past Normal Retirement Date, prorated for a partial year based on the number of months 

since such Yearly Date (counting a partial month as a complete month). 

Such greatest amount so determined applies to an Active Participant, who (i) is not a 5-percent owner, 

(ii) has attained age 70 1/2, and (iii) makes an election to defer commencement of his retirement benefit 

until the calendar year following the calendar year in which he retires, as provided in the REQUIRED 

MINIMUM DISTRIBUTIONS SECTION of Article VII. 

An Active Participant's retirement benefit under the Normal Form shall not be less than the greatest 

amount of benefit that would have been provided for him had he retired on any earlier Retirement Date. 

The Participant's retirement benefits shall be distributed to the Participant according to the distribution 

of benefits provisions of Article VI and the small amounts provisions of the SMALL AMOUNTS SECTION of 

Article X. The amount of payment under any form (other than the Normal Form) shall be determined as 

provided under the OPTIONAL FORMS OF DISTRIBUTION SECTION of Article VI. 

SECTION 4.05--TEMPORARY LIMITATION OF BENEFITS.

Limitation of Benefits of Restricted Employees. 

(a) Definitions. For purposes of this section, the following terms are defined: 

Restricted Employee means any Highly Compensated Employee or former Highly Compensated 

Employee who is one of the 25 nonexcludible employees and former employees of a participating 

Employer with the largest amount of Compensation in the current or any prior year. 

Exhibit 13 Application Page 133
RESTATEMENT JANUARY 1, 2014 32 ARTICLE IV (7-6466)-1

Benefit includes, among other benefits, loans in excess of the amount set forth in Code Section 

72(p)(2)(A), any periodic income, any withdrawal values payable to a living Employee or former 

Employee, and any death benefits not provided by insurance on the Employee's life. 

Restricted Amount means the excess of the amounts distributed to the Employee (accumulated with 

reasonable interest) over the amounts that could have been distributed to the Employee under a 

straight life annuity described above (accumulated with reasonable interest). 

(b) In any year, the payment of Benefits to or on behalf of a Restricted Employee shall not exceed an 

amount equal to the payments that would be made to or on behalf of the Restricted Employee in that 

year under 

(1) a straight life annuity that is the Actuarial Equivalent of the Accrued Benefit and other Benefits to 

which the Restricted Employee is entitled under the Plan (other than a Social Security 

supplement), and 

(2) the amount of the payments that the Restricted Employee is entitled to receive under a Social 

Security supplement, if any. 

The preceding paragraph shall not apply if: 

(3) after payment of the Benefit to a Restricted Employee, the value of plan assets equals or 

exceeds 110 percent of the value of current liabilities, as defined in Code Section 412(l)(7), 

(4) the value of the Benefits for a Restricted Employee is less than one percent of the value of 

current liabilities before distribution, or 

(5) the value of the Benefits payable to or on behalf of the Restricted Employee does not exceed 

$5,000 or if larger, the amount described in Code Section 411(a)(11)(A). 

(c) An Employee's otherwise restricted Benefit may be distributed in full to the affected Employee if prior to 

receipt of the Restricted Amount, the Employee enters into a written agreement with the Plan 

Administrator to secure repayment to the Plan of the Restricted Amount. The Employee may secure 

repayment of the Restricted Amount upon distribution by: 

(1) entering into an agreement for promptly depositing in escrow with an acceptable depositary 

property having a fair market value equal to at least 125 percent of the Restricted Amount, 

(2) providing a bank letter of credit in an amount equal to at least 100 percent of the Restricted 

Amount, or 

(3) posting a bond equal to at least 100 percent of the Restricted Amount. 

If the Employee elects to post bond, the bond will be furnished by an insurance company, bonding 

company or other surety for federal bonds. 

The escrow arrangement may provide that the Employee may withdraw amounts in excess of 125 

percent of the Restricted Amount. If the market value of the property in an escrow account falls below 

110 percent of the remaining Restricted Amount, the Employee must deposit additional property to bring 

the value of the property held by the depositary up to 125 percent of the Restricted Amount. The 

escrow arrangement may provide that the Employee may have the right to receive any income from the 

Exhibit 13 Application Page 134
RESTATEMENT JANUARY 1, 2014 33 ARTICLE IV (7-6466)-1

property placed in escrow, subject to the Employee's obligation to deposit additional property, as set 

forth in the preceding sentence. 

A surety or bank may release any liability on a bond or letter of credit in excess of 100 percent of the 

Restricted Amount. 

If the Plan Administrator certifies to the depositary, surety or bank that the Employee (or his estate) is 

no longer obligated to repay any Restricted Amount, a depositary may redeliver to the Employee any 

property held under an escrow agreement, and a surety or bank may release any liability on an 

Employee's bond or letter of credit. 

Any reasonable and consistent method may be used for determining the value of current liabilities and 

the value of plan assets. 

In the event of Plan termination, the benefit of any active or former Highly Compensated Employee is 

limited to a Benefit that is nondiscriminatory under Code Section 401(a)(4). 

SECTION 4.06--BENEFITS UPON REEMPLOYMENT AFTER RETIREMENT DATE: 

SUSPENSION. 

The monthly retirement benefit payable under this Plan to any retired Participant shall be suspended as 

of the date he is re-employed and performs hours of service in (a), (b), or (c) below, if his total compensation 

payable to him for a taxable year plus the sum of the monthly retirement benefit payable to him for such year 

would cause a reduction in his Social Security benefits, and if such re-employment occurs prior to the 

termination of the Plan pursuant to Article III. 

(a) an industry in which Employees covered by the Plan were employed and accrued benefits under 

the Plan as a result of such employment at the time that the payment of benefits began or would 

have begun if the Participant had not remained in or returned to employment, and 

(b) a trade or craft in which the Participant was employed at any time under the Plan, and 

(c) the geographic area covered by the Plan at the time the payment of benefits began or would 

have begun if the Participant had not remained in or returned to employment. 

Such suspension shall not occur if termination of the Plan has occurred. 

Such Participant shall be notified, by personal delivery or first class mail, during the first calendar month 

in which benefits are suspended. Such notification will contain (i) specific reasons for the suspension, (ii) a 

summary of the Plan’s suspension provisions, (iii) a copy of the Plan’s suspension provisions, (iv) a statement 

to the effect that applicable Department of Labor regulations may be found in §2530.203-3 of the Code of 

Federal Regulations, and (v) the procedure for requesting a review of the suspension. If an offset will be 

applied as provided below, the notification to the Participant will tell him the months to which the offset 

applies, how much the offset is, and how the offset will be applied. 

The Participant must notify the Plan of any employment. The Plan may request access to reasonable 

information for the purpose of verifying employment. The Plan Administrator, when and as often as may 

reasonably be required, may request that the Participant either certify that he is unemployed or provide factual 

information sufficient to establish that any employment would not result in his payments being suspended. 

Failure to comply with such request may cause the Participant’s benefits to be suspended or delay resumption 

of benefits as provided below. 

Exhibit 13 Application Page 135
RESTATEMENT JANUARY 1, 2014 34 ARTICLE IV (7-6466)-1

If the Plan Administrator becomes aware that a retired Participant is employed at a construction site in 

employment which would result in his payments being suspended and the retired Participant has not complied 

with the Plan’s reporting requirements with regard to that employment, then the Plan Administrator may, 

unless it is unreasonable under the circumstances to do so, act on the basis of a rebuttable presumption that 

the retired Participant engaged in such employment for the same Employer in work at that site for so long 

before the work in question as that same Employer performed work at that construction site. Such 

presumption can only be made if the Plan’s verification requirements have been described in the plan’s 

summary plan description and in any communication to the Participant which relates to verification 

requirements (for example, employment reporting reminders or forms). The Participant must have been 

furnished such disclosure at least once every 12 months. Such disclosure must also have explained the 

nature and effect of such presumption. 

If the Participant is not notified in the first month in which payments are to be suspended, those 

payments for months before the notification shall not be suspended, but will be an offset when payments 

resume. When payments resume, each monthly payment will be reduced by the lesser of (i) 25 percent, or (ii) 

the amount of the remaining offset; provided, however, the 25 percent limitation does not apply to the initial 

monthly payment. 

Payments will resume no later than the earlier of (i) the first day of the third calendar month after the 

calendar month in which the Participant performs no Hours of Service, provided that the Participant has 

complied with the Plan’s verification of employment requirements or (ii) the date termination of the Plan 

occurs. The first payment will include suspended payments for prior months in which the Participant 

performed no Hours of Service, but may be offset as provided above. 

The Participant may request a review of any suspension or may request a determination of whether 

specific employment would result in payments being suspended. The procedure for these requests shall be 

the same as the procedures used for claims as provided in the CLAIM PROCEDURES SECTION of Article IX. 

Suspension of payments shall not otherwise affect the amount or form of benefit payable to the 

Participant. If the Participant dies while payments are suspended, any death benefit shall be determined by 

the form of benefit in effect on his earlier Retirement Date, and shall be payable according to the provisions of 

this article. For purposes of determining any death benefits, suspended payments shall be treated as though 

they had been paid to the Participant. If monthly payments are to be continued to a Beneficiary or Contingent 

Annuitant, any offset shall be applied. 

If such Participant again becomes an Active Participant, his Accrued Benefit under the Plan as of his 

subsequent Retirement Date shall be redetermined in accordance with the ACCRUED BENEFIT SECTION of 

Article IV. Monthly retirement income payments beginning on such subsequent Retirement Date shall be 

adjusted for payments previously received. 

If the later of the adoption date or the effective date of any amendment to the Plan adding or changing 

suspension of benefit provisions is on or after June 7, 2004, new or changed suspension provisions shall only 

apply to Employees who commence participation in the Plan on or after the later of the adoption date or 

effective date of such amendment. If the amendment changes the suspension provisions, the suspension 

provisions that apply to Employees who commenced participation in the Plan before such later date shall be 

the provisions that were in effect under the Plan immediately before such change. 

Exhibit 13 Application Page 136
RESTATEMENT JANUARY 1, 2014 35 ARTICLE V (7-6466)-1

ARTICLE V

OTHER BENEFITS

SECTION 5.01--DEATH BENEFITS. 

The provisions of this section shall apply on or after August 23, 1984, to any Participant who is credited 

with at least one Hour of Service or one hour of paid leave on or after such date, and to such other 

Participants as provided in the TRANSITIONAL RULES SECTION of Article VI. 

If a Participant dies before his Annuity Starting Date, death benefits shall be determined under 

subsections (a) and (b) below. The distribution of death benefits shall be subject to the distribution of benefits 

provisions of Article VI and the provisions of the SMALL AMOUNTS SECTION of Article X. 

(a) Qualified Preretirement Survivor Annuity: 

 A Qualified Preretirement Survivor Annuity shall be payable if the following requirements are met: 

 (1) The Participant is survived by a spouse to whom he was continuously married throughout 

the one-year period ending on the date he dies. 

 (2) The Participant's Vesting Percentage on the date of his death was greater than zero. 

 (3) A qualified election to waive this benefit has not been made. 

 If the requirements above are met on the date the Participant dies, a Qualified Preretirement 

Survivor Annuity shall be payable on the earliest date on or after the date of his death on which 

he could have elected to retire if he had a Severance from Employment on the date of his death 

(the date he last had a Severance from Employment, if earlier) and survived to retire. The 

spouse may elect to start benefits on any later first day of the month. If the spouse chooses to 

start benefits later, the Qualified Preretirement Survivor Annuity shall be the Actuarial Equivalent 

of the Qualified Preretirement Survivor Annuity that would have been payable on the date the 

Qualified Preretirement Survivor Annuity would otherwise have been payable. Benefits must start 

by the date the Participant would have been age 70 1/2. If the spouse dies before the Qualified 

Preretirement Survivor Annuity starts, the only death benefit payable from the Participant’s 

Accrued Benefit is that provided in (b) below. 

 Effective for all deaths on or prior to July 31, 2010, if a single sum death benefit would otherwise 

be payable in (b) below, the monthly benefit payable to the spouse under the Qualified 

Preretirement Survivor Annuity on the date the Qualified Preretirement Survivor Annuity first 

becomes payable shall not be less than the Qualified Preretirement Survivor Annuity that is the 

Actuarial Equivalent of the single sum death benefit on that date. 

 Effective for all deaths on or prior to July 31, 2010, if the Participant waives the Qualified 

Preretirement Survivor Annuity, according to the provisions of the ELECTION PROCEDURES 

SECTION of Article VI, by electing to have the single sum death benefit in (b) below paid to his 

Beneficiary after the requirements above are met or if the spouse waives the Qualified 

Preretirement Survivor Annuity, according to the ELECTION PROCEDURES SECTION of Article 

VI, by electing to have the single sum death benefit in (b) below paid to himself as Beneficiary 

Exhibit 13 Application Page 137
RESTATEMENT JANUARY 1, 2014 36 ARTICLE V (7-6466)-1

after the requirements above are met, the Qualified Preretirement Survivor Annuity on the date 

the Qualified Preretirement Survivor Annuity first becomes payable shall be reduced. The 

amount of the reduction shall be equal to the Qualified Preretirement Survivor Annuity that is the 

Actuarial Equivalent of what would have been the single sum death benefit on that date. 

 Effective for all deaths on or after August 1, 2010, in lieu of the Qualified Preretirement Survivor 

Annuity, the spouse may elect an annuity equal to the Participant’s Accrued Benefit on his date of 

death. The annuity shall be payable for the 60-month period beginning on the first day of the 

month on or after such Participant’s death. If the Plan is in critical status under the Pension 

Protection Act, the benefit will be paid as an immediate life annuity instead of the 60-month 

benefit to the extent permitted by law. 

 

 Effective for all deaths on or after August 1, 2010, if the Participant waives the Qualified 

Preretirement Survivor Annuity, according to the provisions of the ELECTION PROCEDURES 

SECTION of Article VI, be electing to have the single sum death benefit in (b) below paid to his 

Beneficiary after the requirements above are met, the Qualified Preretirement Survivor Annuity 

on the date the Qualified Preretirement Survivor Annuity first becomes payable shall be reduced. 

The amount of the reduction shall be equal to the Qualified Preretirement Survivor Annuity that is 

the Actuarial Equivalent of what would have been the single sum death benefit on that date. 

 

(b) Single sum death benefit: 

 Effective for all deaths on or after August 1, 2010, if the requirements of subsection (a) above 

have not been met on the date a Participant dies, a single sum death benefit equal to the 

aggregate amount of Employer Contributions made on his behalf, up to a maximum of $15,000, 

shall be payable to his Beneficiary, if the following requirements are met: 

(1) The Participant has completed at least five years of Accrual Service on or before the date 

he dies. 

(2) If such Participant is an Inactive Participant, his death occurs within twelve months of his 

last day as an Active Participant. 

(3) The Participant is not survived by a spouse on the date he dies. 

 Before a single sum death benefit will be paid on account of the death of a Participant who would 

have met all the requirements in (a) above if he had a spouse to whom he had been continuously 

married throughout the one-year period ending on the date of his death, it must be established to 

the satisfaction of a plan representative that there is no spouse or that the Participant had not 

been continuously married throughout the one-year period ending on the date of his death. 

However, effective as provided by law, such single sum death benefit may not be paid as a single 

sum during any period while the Plan is in critical funding status. The single sum death benefit 

during such period shall be an immediate annuity paid to him instead of a single sum payment. 

If a Participant dies on or after his Normal Retirement Date and before his Annuity Starting Date and 

such Participant is survived by a spouse to whom he was continuously married throughout the one-year period 

ending on the date of his death, the death benefit shall be payable in like manner as provided under (a) and 

(b) above, unless the Participant has waived the Qualified Preretirement Survivor Annuity, according to the 

ELECTION PROCEDURES SECTION of Article VI, by electing the preservation of retirement options death 

benefit. 

Exhibit 13 Application Page 138
RESTATEMENT JANUARY 1, 2014 37 ARTICLE V (7-6466)-1

If a Participant dies on or after his Normal Retirement Date and before his Annuity Starting Date and 

such Participant is not survived by a spouse to whom he was continuously married throughout the one-year 

period ending on the date of his death, the provisions of (a) and (b) above shall not apply. Instead, the death 

benefit shall be the preservation of retirement option death benefit. This death benefit is the death benefit that 

would have been payable to the Participant's Beneficiary or Contingent Annuitant if the Participant's 

Retirement Date had occurred on the date he died. The optional form of distribution elected according to the 

provisions of the ELECTION PROCEDURES SECTION of Article VI before the Participant's death is the form 

in effect for determining the death benefit. For purposes of this death benefit only, an election of an optional 

form of distribution shall be a qualified election even if it is not made within a specified number of days of the 

date retirement benefits would have begun if it meets all of the other requirements for a qualified election. The 

automatic form of distribution for retirement benefits under the AUTOMATIC FORMS OF DISTRIBUTION 

SECTION of Article VI shall be in effect if an election has not been made or an election is revoked without a 

subsequent election according to the provisions of the ELECTION PROCEDURES SECTION of Article VI. 

Any death benefit payable shall be subject to the distribution limitations of the REQUIRED MINIMUM 

DISTRIBUTIONS SECTION of Article VII. 

If after any death benefit above is distributed in a single sum, the Present Value of the remaining 

Qualified Preretirement Survivor Annuity payable under (a) above is $5,000 or less, the spouse may receive 

such Present Value in a single sum payment in lieu of the Qualified Preretirement Survivor Annuity. It will be 

distributed only if the spouse so elects. The spouse’s election shall be subject to the requirements in the 

ELECTION PROCEDURES SECTION of Article VI for a qualified election of a death benefit payable in a form 

other than a Qualified Preretirement Survivor Annuity. 

Any death benefit after a Participant’s Annuity Starting Date will be determined by the form of retirement 

benefit in effect on such date. 

SECTION 5.02--VESTED BENEFITS.

A Participant who becomes an Inactive Participant before retirement or death (and, if applicable, before 

the date a disability payment begins under the DISABILITY BENEFITS SECTION of this article) will be entitled 

to one of the following vested benefits whichever is applicable. Any distribution of vested benefits shall be a 

retirement benefit and shall be subject to the distribution of benefits provisions of Article VI and the provisions 

of the SMALL AMOUNTS SECTION of Article X. 

(a) A deferred monthly retirement benefit under the Normal Form to begin on his Normal Retirement 

Date. The deferred retirement benefit will be equal to the product of (1) and (2): 

 (1) The Participant's Accrued Benefit on the day before he became an Inactive Participant. 

 (2) The Participant's Vesting Percentage on the date he had a Severance from Employment. 

(b) A deferred monthly retirement benefit under the Normal Form to begin on his Early Retirement 

Date. The deferred retirement benefit shall be equal to a percentage of the amount under (a) 

above as provided for in the AMOUNT OF BENEFIT AT RETIREMENT SECTION of Article IV. 

(c) A deferred monthly retirement benefit under the Normal Form to begin on his Late Retirement 

Date. The deferred retirement benefit shall be determined as follows: 

 (1) For a Participant who became an Inactive Participant on or before his Normal Retirement 

Date, an amount equal to the amount under (a) above multiplied by the late retirement 

Exhibit 13 Application Page 139
RESTATEMENT JANUARY 1, 2014 38 ARTICLE V (7-6466)-1

factor in the AMOUNT OF BENEFIT AT RETIREMENT SECTION of Article IV that 

corresponds to the number of years his Late Retirement Date follows his Normal 

Retirement Date. 

 (2) For a Participant who became an Inactive Participant after his Normal Retirement Date, an 

amount equal to the greater of (i) or (ii) below: 

 (i) The Participant's Accrued Benefit on the day before the date he became an Inactive 

Participant. 

 (ii) His Accrued Benefit on his Normal Retirement Date multiplied by the late retirement 

factor in the AMOUNT OF BENEFIT AT RETIREMENT SECTION of Article IV that 

corresponds to the number of years his Late Retirement Date follows his Normal 

Retirement Date. 

 Provided, however, for an Inactive Participant whose Late Retirement Date occurs after the 

April 1 following the calendar year in which he attains age 70 1/2 (January 1, 1997, if later), such 

Participant’s deferred monthly retirement benefit determined in (1) or (2) above, whichever 

applies, shall be adjusted as provided in paragraph (c) relating to Late Retirement Date in the 

AMOUNT OF BENEFIT AT RETIREMENT SECTION of Article IV. 

The amount of payment under any form (other than the Normal Form) shall be determined as provided 

under the OPTIONAL FORMS OF DISTRIBUTION SECTION of Article VI. After the Participant has a 

Severance from Employment, the deferred retirement benefit shall not decrease because of any postseparation Social Security benefit increase. If he again becomes an Active Participant, such a decrease shall 

also not apply to any deferred retirement benefit to which he was entitled before his Reentry Date. 

If the Participant dies before his Annuity Starting Date, death benefits shall be distributed according to 

the provisions of the DEATH BENEFITS SECTION of this article. 

SECTION 5.03--DISABILITY BENEFITS.

Effective for all disabilities on or prior to July 31, 2010, if a Participant becomes disabled (and such 

disability is determined to meet the definition of Totally and Permanently Disabled) before his Retirement Date 

(Normal Retirement Date, if earlier), a disability benefit shall be payable to him if the disability occurs on or 

after he has completed 15 years of Vesting Service. 

Effective for disabilities on or after August 1, 2010, if a Participant becomes disabled (and such 

disability is determined to meet the definition of Totally and Permanently Disabled) before his Retirement Date 

(Normal Retirement Date, if earlier), a disability benefit shall be payable to him if the disability occurs on or 

after he has completed 15 years of Vesting Service. Such disability benefit shall be payable only if the 

disability occurs within 24 months of his last day as an Active Participant. 

Such Participant shall become an Inactive Participant as of the date he becomes Totally and 

Permanently Disabled if he was an Active Participant on the day immediately preceding such date. 

For purposes of this Section 5.03 as to a Participant who was an Active Participant on the day 

immediately preceding the date he became Totally and Permanently Disabled, termination of service with the 

Employer is deemed not to have occurred because of his disability, until and unless his employment is 

otherwise terminated; provided, however, that any periods of absence due to his disability under this Section 

5.03 shall not be counted in this Plan wherever service is a determining factor. 

Exhibit 13 Application Page 140
RESTATEMENT JANUARY 1, 2014 39 ARTICLE V (7-6466)-1

Effective for disabilities on or before July 31, 2010, the disability benefit payable to a Participant who is 

an Active Participant on the day immediately preceding the date he meets the requirements above is an 

immediate monthly benefit equal to his Accrued Benefit determined as of the last day he was actively at work 

for a participating employer. 

Effective for disabilities on or before July 31, 2010, the disability benefit payable to a Participant who is 

an Inactive Participant on the day immediately preceding the date he meets the requirements above is an 

immediate monthly benefit equal to the deferred monthly retirement benefit to which such Participant would be 

entitled on his Normal Retirement Date pursuant to the VESTED BENEFITS SECTION of this article. 

Effective for disabilities on or after August 1, 2010, for Monthly disability benefit payments shall begin 

on the earliest first day of the month on or after the date the Participant meets the requirements under this 

section. A Participant may not elect a retroactive date for starting his monthly disability benefit that precedes 

the date distributions commence by more than 12 months. Such payments shall continue through the last 

monthly payment made before the earliest of his Retirement Date (Normal Retirement Date, if earlier), the 

date of his death, or the day following the date he receives his last disability payment under Title II of the 

Federal Social Security Act (or the date he receives notification from the Social Security Administration that he 

is no longer eligible for such benefit, if earlier. 

For a Participant who was an Active Participant on the day immediately preceding the date he became 

Totally and Permanently Disabled, if the payments continue through the first day of the month before the 

Participant’s Normal Retirement Date, retirement benefits shall be provided for him on his Normal Retirement 

Date under the provisions of Article IV as if he were an Active Participant. The amount of benefit shall be 

equal to the Accrued Benefit determined for him on the date he became Totally and Permanently Disabled. 

However, such benefit shall not be less than the amount of monthly disability payment paid to him under this 

section. If, before the Participant's Retirement Date (Normal Retirement Date, if earlier), he recovers and 

returns to active work for a participating Employer within one month of his recovery, the payments shall stop 

and he shall again become an Active Participant under the ACTIVE PARTICIPANT SECTION of Article II. If, 

before the Participant's Retirement Date (Normal Retirement Date, if earlier), he recovers and does not return 

to active work for a participating Employer within one month of his recovery, the payments shall stop and his 

benefits shall be redetermined, on the date he had a Severance from Employment, under the VESTED 

BENEFITS SECTION of this article. 

For a Participant who was an Inactive Participant on the day immediately preceding the date he became 

Totally and Permanently Disabled, if such payments continue through the first day of the month before the 

Participant’s Normal Retirement Date, retirement benefits shall be provided for him on his Normal Retirement 

Date under the provisions of the VESTED BENEFIT SECTION of this article. If such Participant’s recovery 

occurs before his Normal Retirement Date, such payments shall stop and his benefit shall be redetermined 

pursuant to the VESTED BENEFITS SECTION of this article. 

Effective for disabilities on or after August 1, 2013, the amount of disability benefit shall be 50% of the 

Accrued Benefit determined for him on the date he became Totally and Permanently Disabled. 

Exhibit 13 Application Page 141
RESTATEMENT JANUARY 1, 2014 40 ARTICLE VI (7-6466)-1

ARTICLE VI

WHEN BENEFITS START AND DISTRIBUTION OF 

BENEFITS

The provisions of this article shall apply to any Participant who is credited with at least one Hour of 

Service with a participating Employer on or after August 23, 1984, and to such other Participants as provided 

in the TRANSITIONAL RULES SECTION of this article. 

SECTION 6.01--WHEN BENEFITS START.

Unless otherwise elected, benefits shall begin no later than the sixtieth day following the close of the 

Plan Year in which the latest date below occurs: 

(a) The date the Participant attains age 65 (or Normal Retirement Age, if earlier). 

(b) The tenth anniversary of the Participant's Entry Date. 

(c) The date the Participant terminates service with all participating Employers. 

Notwithstanding the foregoing, the failure of a Participant and spouse to consent to a distribution while a 

benefit is immediately distributable, within the meaning of the ELECTION PROCEDURES SECTION of this 

article, shall be deemed to be an election to defer the start of benefits sufficient to satisfy this section. 

The Participant may elect to have benefits begin after the latest date for beginning benefits described 

above, subject to the following provisions of this section. The Participant shall make the election in writing. 

Such election must be made before his Normal Retirement Date or the date he has a Severance from 

Employment, if later. The Participant shall not elect a date for beginning benefits or a form of distribution that 

would result in a benefit payable when he dies which would be more than incidental within the meaning of 

governmental regulations. 

Benefits shall begin on an earlier date if otherwise provided in the Plan. For example, benefits may 

start on the Participant’s Retirement Date or Required Beginning Date, as defined in the DEFINITIONS 

SECTION of Article VII. 

If as a result of actuarial increases to the benefit of a Participant who delays commencement of benefits 

beyond Normal Retirement Age the Accrued Benefit of such Participant would exceed the limitations under the 

BENEFIT LIMITATION SECTION of Article IV for the Limitation Year, as defined in the BENEFIT LIMITATION 

SECTION of Article IV, immediately before the actuarial increase to the Participant’s benefit that would cause 

such Participant’s benefit to exceed the limitations of the BENEFIT LIMITATION SECTION of Article IV, 

distribution of the Participant’s benefit will commence. 

SECTION 6.02--AUTOMATIC FORMS OF DISTRIBUTION.

Unless an optional form of benefit is selected pursuant to a qualified election within the election period 

(see the ELECTION PROCEDURES SECTION of this article), the automatic form of benefit payable to or on 

behalf of a Participant is determined as follows: 

Exhibit 13 Application Page 142
RESTATEMENT JANUARY 1, 2014 41 ARTICLE VI (7-6466)-1

(a) Retirement Benefits. The automatic form of retirement benefit for a Participant who does not die 

before his Annuity Starting Date shall be: 

 (1) The Qualified Joint and Survivor Annuity for a Participant who has a spouse. 

 (2) The Normal Form for a Participant who does not have a spouse. 

(b) Death Benefits. The automatic form of death benefit for a Participant who dies before his Annuity 

Starting Date is determined according to the provisions of the DEATH BENEFITS SECTION of 

Article V. 

SECTION 6.03--OPTIONAL FORMS OF DISTRIBUTION.

(a) Retirement Benefits. The optional forms of retirement benefit shall be the following: (i) a straight 

life annuity; (ii) single life annuities with certain periods of 5, 10, or 15 years; and (iii) survivorship 

life annuities with survivorship percentages of 50%, 66 2/3%, 75%, or 100%. 

 The benefit payable under any optional form available above (other than the Normal Form) shall 

be the Actuarial Equivalent of the benefit that would otherwise be payable to the Participant 

under the Normal Form on his Retirement Date. However, if the Participant’s Retirement Date is 

before his Normal Retirement Date, the benefit payable under any optional form other than (i) a 

nondecreasing annuity payable for a period of not less than the life of the Participant or (ii) an 

annuity that decreases during the life of the Participant merely because of (a) the death of the 

survivor annuitant (but only if the reduction is not below 50% of the benefit payable before the 

death of the survivor annuitant), or (b) the cessation or reduction of Social Security supplements 

or qualified disability payments (as defined in Code Section 401(a)(11)), shall not be less than 

the Actuarial Equivalent of the benefit that would otherwise be payable to the Participant under 

the Normal Form on his Normal Retirement Date. 

 Election of an optional form is subject to the qualified election provisions of the ELECTION 

PROCEDURES SECTION of this article and the distribution requirements of Article VII. 

 Any annuity contract distributed shall be nontransferable. The terms of any annuity contract 

purchased and distributed by the Plan to a Participant or spouse shall comply with the 

requirements of the Plan. 

(b) Death Benefits. The optional forms of death benefit are any optional forms of retirement benefit 

stated in (a) above that are not survivorship life annuities. Election of an optional form is subject 

to the qualified election provisions of the ELECTION PROCEDURES SECTION of this article and 

the distribution requirements of Article VII. 

SECTION 6.04--ELECTION PROCEDURES. 

The Participant, Beneficiary, or spouse shall make any election under this section in writing. The Plan 

Administrator may require such individual to complete and sign any necessary documents as to the provisions 

to be made. Any election permitted under (a) and (b) below shall be subject to the qualified election 

provisions of (c) below. 

(a) Retirement Benefits. A Participant may elect his Beneficiary or Contingent Annuitant and may 

elect to have retirement benefits distributed under any of the optional forms of retirement benefit 

available in the OPTIONAL FORMS OF DISTRIBUTION SECTION of this article. 

Exhibit 13 Application Page 143
RESTATEMENT JANUARY 1, 2014 42 ARTICLE VI (7-6466)-1

(b) Death Benefits. The Participant may waive the Qualified Preretirement Survivor Annuity by 

electing not to have the provisions of (a) and (b) of the DEATH BENEFITS SECTION of Article V 

continue to apply on and after his Normal Retirement Date. If the Participant makes this election 

and dies on or after his Normal Retirement Date, the preservation of retirement option death 

benefit shall be paid as if the Participant had not been survived by a spouse. However, the 

retirement option that is preserved will be the Qualified Joint and Survivor Annuity unless the 

Participant has waived the Qualified Joint and Survivor Annuity according to the provisions of this 

section. 

 

 A Participant may elect his Beneficiary for any single sum death benefits and may elect to have 

such death benefits distributed under any of the optional forms of death benefit available in the 

OPTIONAL FORMS OF DISTRIBUTION SECTION of this article. 

 If the Participant has not elected an optional form of distribution for the death benefit payable to 

his Beneficiary, the Beneficiary may, for his own benefit, elect the form of distribution, in like 

manner as a Participant. 

 The Participant may waive the Qualified Preretirement Survivor Annuity by electing not to have 

the single sum death benefit used to provide a minimum Qualified Preretirement Survivor Annuity 

as described in the DEATH BENEFITS SECTION of Article V. If the Participant makes this 

election, the single sum death benefit shall be paid as if the requirements of subsection (a) of the 

DEATH BENEFITS SECTION of Article V had not been met. 

 The spouse may waive the Qualified Preretirement Survivor Annuity by electing not to have the 

single sum death benefit used to provide a minimum Qualified Preretirement Survivor Annuity as 

described in the DEATH BENEFITS SECTION of Article V. If the spouse makes this election, the 

single sum death benefit shall be paid as if the requirements of subsection (a) of the DEATH 

BENEFITS SECTION of Article V had not been met and the Participant had named his spouse as 

Beneficiary. 

 In lieu of the Qualified Preretirement Survivor Annuity described in the DEATH BENEFITS 

SECTION of Article V, the spouse may, for his own benefit, waive the Qualified Preretirement 

Survivor Annuity by electing to have the benefit distributed under any of the optional forms of 

death benefit available in the OPTIONAL FORMS OF DISTRIBUTION SECTION of this article. 

(c) Qualified Election. The Participant, Beneficiary, or spouse may make an election at any time 

during the election period. The Participant, Beneficiary, or spouse may revoke the election made 

(or make a new election) at any time and any number of times during the election period. An 

election is effective only if it meets the consent requirements below. 

 (1) Election Period for Retirement Benefits. The election period as to retirement benefits is 

the 180-day period ending on the Annuity Starting Date. An election to waive the Qualified 

Joint and Survivor Annuity may not be made before the date the Participant is provided 

with the notice of the ability to waive the Qualified Joint and Survivor Annuity. 

 (2) Election Period for Death Benefits. A Participant may make an election as to death 

benefits at any time before he dies. The spouse's election period begins on the date the 

Participant dies and ends on the date benefits begin. The Beneficiary's election period 

begins on the date the Participant dies and ends on the date benefits begin. 

Exhibit 13 Application Page 144
RESTATEMENT JANUARY 1, 2014 43 ARTICLE VI (7-6466)-1

 An election to waive the Qualified Preretirement Survivor Annuity may not be made by the 

Participant before the date he is provided with the notice of the ability to waive the 

Qualified Preretirement Survivor Annuity. A Participant's election to waive the Qualified 

Preretirement Survivor Annuity that is made before the first day of the Plan Year in which 

he reaches age 35 shall become invalid on such date. An election made by a Participant 

after he has a Severance from Employment will not become invalid on the first day of the 

Plan Year in which he reaches age 35 with respect to death benefits from that part of his 

Accrued Benefit earned before he has a Severance from Employment. If a Participant has 

a spouse who is entitled to a Qualified Preretirement Survivor Annuity his election period 

as to the preservation of retirement option death benefit begins 180 days before the first 

day of the Plan Year in which the Participant reaches Normal Retirement Age. 

 (3) Consent to Election. If the Present Value of the Participant’s Vested Accrued Benefit 

exceeds $5,000, any benefit that is (i) immediately distributable or (ii) payable in a form 

other than a Qualified Joint and Survivor Annuity or a Qualified Preretirement Survivor 

Annuity, requires the consent of the Participant and the Participant’s spouse (or where 

either the Participant or the spouse has died, the survivor). Such consent shall also be 

required if the Participant had previously had an Annuity Starting Date with respect to any 

portion of such Vested Accrued Benefit. 

 The consent of the Participant or spouse to a benefit that is immediately distributable must 

not be made before the date the Participant or spouse is provided with the notice of the 

ability to defer the distribution. Such consent shall be in writing. 

 The consent shall not be made more than 180 days before the Annuity Starting Date. 

Spousal consent is not required for a benefit that is immediately distributable in a Qualified 

Joint and Survivor Annuity. Neither the consent of the Participant nor the Participant’s 

spouse shall be required to the extent that a distribution is required to satisfy Code Section 

401(a)(9) or 415. 

 A benefit is immediately distributable if any part of the benefit could be distributed to the 

Participant (or surviving spouse) before the Participant attains (or would have attained if 

not deceased) the older of Normal Retirement Age or age 62. 

 If the Qualified Joint and Survivor Annuity is waived, the spouse has the right to limit 

consent only to a specific Beneficiary or a specific form of benefit. The spouse can 

relinquish one or both such rights. Such consent shall be in writing. The consent shall not 

be made more than 180 days before the Annuity Starting Date. If the Qualified 

Preretirement Survivor Annuity is waived, the spouse has the right to limit consent only to 

a specific Beneficiary. Such consent shall be in writing. The spouse’s consent shall be 

witnessed by a plan representative or notary public. The spouse’s consent must 

acknowledge the effect of the election, including that the spouse had the right to limit 

consent only to a specific Beneficiary or a specific form of benefit, if applicable, and that 

the relinquishment of one or both such rights was voluntary. Unless the consent of the 

spouse expressly permits designations by the Participant without a requirement of further 

consent by the spouse, the spouse’s consent must be limited to the form of benefit, if 

applicable, and the Beneficiary (including any Contingent Annuitant), class of 

Beneficiaries, or contingent Beneficiary named in the election. 

 Spousal consent is not required, however, if the Participant establishes to the satisfaction 

of the plan representative that the consent of the spouse cannot be obtained because 

Exhibit 13 Application Page 145
RESTATEMENT JANUARY 1, 2014 44 ARTICLE VI (7-6466)-1

there is no spouse or the spouse cannot be located. A spouse’s consent under this 

paragraph shall not be valid with respect to any other spouse. A Participant may revoke a 

prior election without the consent of the spouse. Any new election will require a new 

spousal consent, unless the consent of the spouse expressly permits such election by the 

Participant without further consent by the spouse. A spouse’s consent may be revoked at 

any time within the Participant’s election period. 

SECTION 6.05--NOTICE REQUIREMENTS.

(a) Optional Forms of Retirement Benefit and Right to Defer. The Plan Administrator shall furnish to 

the Participant and the Participant's spouse a written explanation of the right of the Participant 

and the Participant’s spouse to defer distribution until such time it is no longer immediately 

distributable. Such notice shall include written explanation of the optional forms of retirement 

benefit in the OPTIONAL FORMS OF DISTRIBUTION SECTION of this article, including a 

general description of the material features and an explanation of the relative values of those 

options, in a manner that would satisfy the notice requirements of Code Section 417(a)(3) and 

section 1.417(a)(3)-1 of the regulations. The notice shall also include the consequences of failing 

to defer any distribution by providing a description of how much larger benefits will be if the 

commencement of distributions is deferred. 

The Plan Administrator shall furnish the written explanation by a method reasonably calculated to 

reach the attention of the Participant and the Participant’s spouse no less than 30 days, and no 

more than 180 days before the Annuity Starting Date. 

 The Participant (and spouse, if applicable) may waive the 30-day election period if the distribution 

of the elected form of retirement benefit begins more than 7 days after the Plan Administrator 

provides the Participant (and spouse, if applicable) the written explanation provided that: (i) the 

Participant has been provided with information that clearly indicates that the Participant has at 

least 30 days to consider the decision of whether or not to elect a distribution and a particular 

distribution option, (ii) the Participant is permitted to revoke any affirmative distribution election at 

least until the Annuity Starting Date or, if later, at any time prior to the expiration of the 7-day 

period that begins the day after the explanation is provided to the Participant, and (iii) the Annuity 

Starting Date is a date after the date that the written explanation was provided to the Participant. 

(b) Qualified Joint and Survivor Annuity. The Plan Administrator shall furnish to the Participant a 

written explanation of the following: the terms and conditions of the Qualified Joint and Survivor 

Annuity; the Participant's right to make, and the effect of, an election to waive the Qualified Joint 

and Survivor Annuity; the rights of the Participant's spouse; the right to revoke an election and 

the effect of such a revocation; and the relative values of the various optional forms of retirement 

benefit under the Plan as provided in section 1.417(a)(3)-1 of the regulations. 

The Plan Administrator shall furnish the written explanation by a method reasonably calculated to 

reach the attention of the Participant no less than 30 days, and no more than 180 days before the 

Annuity Starting Date. 

The Participant (and spouse, if applicable) may waive the 30-day election period if the distribution 

of the elected form of retirement benefit begins more than 7 days after the Plan Administrator 

provides the Participant (and spouse, if applicable) the written explanation provided that: (i) the 

Participant has been provided with information that clearly indicates that the Participant has at 

least 30 days to consider whether to waive the Qualified Joint and Survivor Annuity and elect 

(with spousal consent, if applicable) to receive a form of distribution other than a Qualified Joint 

Exhibit 13 Application Page 146
RESTATEMENT JANUARY 1, 2014 45 ARTICLE VI (7-6466)-1

and Survivor Annuity, (ii) the Participant is permitted to revoke any affirmative distribution 

election at least until the Annuity Starting Date or, if later, at any time prior to the expiration of the 

7-day period that begins the day after the explanation of the Qualified Joint and Survivor Annuity 

is provided to the Participant, and (iii) the Annuity Starting Date is a date after the date that the 

written explanation was provided to the Participant. 

 After the written explanation is given, a Participant or spouse may make a written request for 

additional information. The written explanation must be personally delivered or mailed (first class 

mail, postage prepaid) to the Participant or spouse within 30 days from the date of the written 

request. The Plan Administrator does not need to comply with more than one such request by a 

Participant or spouse. 

 The Plan Administrator's explanation shall be written in nontechnical language and will explain 

the terms and conditions of the Qualified Joint and Survivor Annuity and the financial effect upon 

the Participant's benefit (in terms of dollars per benefit payment) of electing not to have benefits 

distributed in accordance with the Qualified Joint and Survivor Annuity. 

(c) Qualified Preretirement Survivor Annuity. The Plan Administrator shall furnish to the Participant 

a written explanation of the following: the terms and conditions of the Qualified Preretirement 

Survivor Annuity; the Participant's right to make, and the effect of, an election to waive the 

Qualified Preretirement Survivor Annuity; the rights of the Participant's spouse; and the right to 

revoke an election and the effect of such a revocation. 

 The Plan Administrator shall furnish the written explanation by a method reasonably calculated to 

reach the attention of the Participant within the applicable period. The applicable period for a 

Participant is whichever of the following periods ends last: 

 (1) the period beginning one year before the date the individual becomes a Participant and 

ending one year after such date; or 

 (2) the period beginning one year before the date the Participant's spouse is first entitled to a 

Qualified Preretirement Survivor Annuity and ending one year after such date. 

 If such notice is given before the period beginning with the first day of the Plan Year in which the 

Participant attains age 32 and ending with the close of the Plan Year preceding the Plan Year in 

which the Participant attains age 35, an additional notice shall be given within such period. If a 

Participant has a Severance from Employment before attaining age 35, an additional notice shall 

be given within the period beginning one year before the date he has a Severance from 

Employment and ending one year after such date. The applicable period for providing the notice 

that applies to the election to waive the Qualified Preretirement Survivor Annuity for the 

preservation of retirement option death benefit is the period beginning one year before the date 

the Participant reaches Normal Retirement Age and ending one year after such date. 

 After the written explanation is given, a Participant or spouse may make a written request for 

additional information. The written explanation must be personally delivered or mailed (first class 

mail, postage prepaid) to the Participant or spouse within 30 days from the date of the written 

request. The Plan Administrator does not need to comply with more than one such request by a 

Participant or spouse. 

 The Plan Administrator's explanation shall be written in nontechnical language and will explain 

the terms and conditions of the Qualified Preretirement Survivor Annuity and the financial effect 

Exhibit 13 Application Page 147
RESTATEMENT JANUARY 1, 2014 46 ARTICLE VI (7-6466)-1

upon the spouse's benefit (in terms of dollars per benefit payment) of electing not to have 

benefits distributed in accordance with the Qualified Preretirement Survivor Annuity. 

SECTION 6.06--TRANSITIONAL RULES.

(a) Any living Participant not receiving benefits on August 23, 1984, who would otherwise not receive 

the benefits prescribed by the previous sections of this article, must be given the opportunity to 

elect to have the prior sections of this article apply if such Participant is credited with at least one 

Hour of Service under this Plan, or a predecessor plan, in a Plan Year beginning on or after 

January 1, 1976, and such Participant had at least 10 Years of Service when he separated from 

service. 

(b) Any living Participant not receiving benefits on August 23, 1984, who was credited with at least 

one Hour of Service under this Plan, or a predecessor plan, on or after September 2, 1974, and 

who is not otherwise credited with any service in a Plan Year beginning on or after January 1, 

1976, must be given the opportunity to elect to have his benefits paid in accordance with (d) 

below. 

(c) The respective opportunities to elect (as described in (a) and (b) above) must be afforded to the 

appropriate Participants during the period beginning on August 23, 1984, and ending on the date 

benefits would otherwise begin to such Participants. 

(d) Any Participant who has elected according to (b) above and any Participant who does not elect 

under (a) above or who meets the requirements of (a) above except that such Participant does 

not have at least 10 Years of Service when he separated from service, shall have his benefits 

distributed in accordance with all of the following requirements if benefits would have been 

payable in the form of a life annuity: 

 (1) Automatic Joint and Survivor Annuity. If benefits in the form of a life annuity become 

payable to a married Participant who: 

 (i) begins to receive payments under the Plan on or after his Normal Retirement Age; 

or 

 (ii) dies on or after his Normal Retirement Age while still working for a participating 

Employer; or 

 (iii) begins to receive payments on or after his qualified early retirement age; or 

 (iv) separates from service on or after attaining his Normal Retirement Age (or his 

qualified early retirement age) and after satisfying the eligibility requirements for the 

payment of benefits under the Plan and thereafter dies before beginning to receive 

such benefits; 

 then such benefits will be paid under the Qualified Joint and Survivor Annuity, unless the 

Participant has elected otherwise during the election period. The election period must 

begin at least six months before the Participant attains his qualified early retirement age 

and end not more than 90 days before benefits begin. Any election hereunder shall be in 

writing and may be changed by the Participant at any time before his Annuity Starting 

Date. 

Exhibit 13 Application Page 148
RESTATEMENT JANUARY 1, 2014 47 ARTICLE VI (7-6466)-1

 (2) Election of Early Survivor Annuity. A Participant who is employed after attaining his 

qualified early retirement age shall be given the opportunity to elect, during the election 

period, to have a Qualified Preretirement Survivor Annuity payable on death. If the 

Participant elects the Qualified Preretirement Survivor Annuity, payments under such 

annuity must not be less than the payments that would have been made to the spouse 

under the Qualified Joint and Survivor Annuity if the Participant had retired on the day 

before his death. 

Any election under this provision shall be in writing and may be changed by the Participant 

at any time. The election period begins on the later of (i) the 90th day before the 

Participant attains his qualified early retirement age, or (ii) the date on which participation 

begins, and ends on the date he terminates employment. 

 (3) For purposes of this subparagraph (d), qualified early retirement age is the latest of: 

 (i) the earliest date, under the Plan, on which the Participant may elect to receive 

retirement benefits, 

 (ii) the first day of the 120th month beginning before the Participant reaches his Normal 

Retirement Age, or 

 (iii) the date the Participant begins participation. 

Exhibit 13 Application Page 149
RESTATEMENT JANUARY 1, 2014 48 ARTICLE VII (7-6466)-1

ARTICLE VII 

REQUIRED MINIMUM DISTRIBUTIONS 

SECTION 7.01--APPLICATION. 

The optional forms of distribution are only those provided in Article VI. An optional form of distribution 

shall not be permitted unless it meets the requirements of this article. The timing of any distribution must meet 

the requirements of this article. 

SECTION 7.02--DEFINITIONS. 

For purposes of this article, the following terms are defined: 

Actuarial Gain means the difference between an amount determined using the actuarial assumptions 

(i.e., investment return, mortality, expense, and other similar assumptions) used to calculate the initial 

payments before adjustment for any increases and the amount determined under the actual experience 

with respect to those factors. Actuarial Gain also includes differences between the amount determined 

using actuarial assumptions when an annuity was purchased or commenced and such amount 

determined using actuarial assumptions used in calculating payments at the time the Actuarial Gain is 

determined. 

Distribution Calendar Year means a calendar year for which a minimum distribution is required. For 

distributions beginning before the Participant's death, the first Distribution Calendar Year is the calendar 

year immediately preceding the calendar year that contains the Participant's Required Beginning Date. 

For distributions beginning after the Participant's death, the first Distribution Calendar Year is the 

calendar year in which distributions are required to begin under (b)(2) of the REQUIRED MINIMUM 

DISTRIBUTIONS SECTION of this article. 

Eligible Cost-of-living Index means an index described in paragraph (b)(2), (b)(3), or (b)(4) in Q&A-14 

in section 1.401(a)(9)-6 of the regulations. 

5-percent Owner means a Participant who is treated as a 5-percent Owner for purposes of this article. 

A Participant is treated as a 5-percent Owner for purposes of this article if such Participant is a 5-

percent owner as defined in Code Section 416 at any time during the Plan Year ending with or within 

the calendar year in which such owner attains age 70 1/2. 

Once distributions have begun to a 5-percent Owner under this article, they must continue to be 

distributed, even if the Participant ceases to be a 5-percent Owner in a subsequent year. 

Life Expectancy means life expectancy as computed by use of the Single Life Table in Q&A-1 in 

section 1.401(a)(9)-9 of the regulations. 

Required Beginning Date means the date defined below: 

(a) Required Beginning Date means, for a Participant who is a 5-percent Owner, April 1 of the 

calendar year following the calendar year in which he attains age 70 1/2. 

Exhibit 13 Application Page 150
RESTATEMENT JANUARY 1, 2014 49 ARTICLE VII (7-6466)-1

Required Beginning Date means, for any Participant who is not a 5-percent Owner, April 1 of the 

calendar year following the later of the calendar year in which he attains age 70 1/2 or the 

calendar year in which he retires. 

(b) The preretirement age 70 1/2 distribution option is only eliminated with respect to Participants 

who reach age 70 1/2 in or after a calendar year that begins after the later of December 31, 1998, 

or the adoption date of the amendment that eliminated such option. The preretirement age 

70 1/2 distribution option is an optional form of benefit under which benefits payable in a 

particular distribution form (including any modifications that may be elected after benefits begin) 

begin at a time during the period that begins on or after January 1 of the calendar year in which 

the Participant attains age 70 1/2 and ends April 1 of the immediately following calendar year. 

The options available for Participants who are not 5-percent Owners and attained age 70 1/2 in 

calendar years before the calendar year that begins after the later of December 31, 1998, or the 

adoption date of the amendment that eliminated the preretirement age 70 1/2 distribution option 

shall be the following. Any such Participant attaining age 70 1/2 may elect by April 1 of the 

calendar year following the calendar year in which he attains age 70 1/2 to defer distributions 

until April 1 of the calendar year following the calendar year in which he retires. If no such 

election is made, the Participant shall begin receiving distributions by April 1 of the calendar year 

following the calendar year in which he attained age 70 1/2. Any such Participant attaining age 

70 1/2 in years prior to 1997 may elect to stop distributions that are not purchased annuities and 

recommence by April 1 of the calendar year following the calendar year in which he retires. To 

satisfy the joint and survivor annuity requirements described in Article VI, the requirements in in 

Notice 97-75, Q&A-8, must be satisfied for any Participant who elects to stop distributions, 

including the requirement that such distribution stop before the end of the Plan’s remedial 

amendment period under Code Section 401(b) for changes in plan qualification requirements 

made by the Small Business Job Protection Act of 1996. There shall be a new Annuity Starting 

Date upon recommencement. 

(c) Except with respect to a 5-percent Owner, a Participant’s Accrued Benefit is actuarially increased 

to take into account the period after age 70 1/2 in which the Employee does not receive any 

benefits under the Plan. The actuarial increase will begin on April 1 following the calendar year 

in which the Employee attains age 70 1/2 (January 1, 1997, in the case of an Employee who 

attained age 70 1/2 prior to 1996), and will end on the date on which benefits commence after 

retirement in an amount sufficient to satisfy Code Section 401(a)(9). 

The amount of the actuarial increase payable as of the end of the period for actuarial increases 

must be no less than the actuarial equivalent of the Participant’s retirement benefits that would 

have been payable as of the date the actuarial increase must commence plus the actuarial 

equivalent of the additional benefits accrued after that date, reduced by the actuarial equivalent 

of any distributions made after that date. Actuarial equivalent shall be based on the method for 

adjusting benefits at Late Retirement Date as provided in the AMOUNT OF BENEFIT AT 

RETIREMENT SECTION of Article IV. The actuarial increase under this article is not in addition 

to the actuarial increase required for that same period under Code Section 411 to reflect the 

delay in payments after normal retirement, except that the actuarial increase required under this 

article will be provided even during the period during which an Employee is in ERISA section 

203(a)(3)(B) service. 

For purposes of Code Section 411(b)(1)(H), the actuarial increase will be treated as an 

adjustment attributable to the delay in distribution of benefits after the attainment of Normal 

Retirement Age. Accordingly, to the extent permitted under Code Section 411(b)(1)(H), the 

Exhibit 13 Application Page 151
RESTATEMENT JANUARY 1, 2014 50 ARTICLE VII (7-6466)-1

actuarial increase required under this article may reduce the benefit accrual otherwise required 

under Code Section 411(b)(1)(H)(i), except that the rules on the suspension of benefits are not 

applicable. 

SECTION 7.03--REQUIRED MINIMUM DISTRIBUTIONS. 

(a) General Rules. 

(1) Precedence. Subject to the AUTOMATIC FORMS OF DISTRIBUTION SECTION of 

Article VI, joint and survivor annuity requirements, the requirements of this article shall 

apply to any distribution of a Participant’s interest and will take precedence over any 

inconsistent provisions of this Plan. 

(2) Requirements of Regulations Incorporated. All distributions required under this article 

shall be determined and made in accordance with Code Section 401(a)(9), including the 

incidental death benefit requirement in Code Section 401(a)(9)(G), and the regulations 

thereunder. 

(b) Time and Manner of Distribution. 

(1) Required Beginning Date. The Participant’s entire interest will be distributed, or begin to 

be distributed, no later than the Participant’s Required Beginning Date. 

(2) Death of Participant Before Distributions Begin. If the Participant dies before distributions 

begin, the Participant’s entire interest will be distributed, or begin to be distributed, no later 

than as follows: 

(i) If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, 

distributions to the surviving spouse will begin by December 31 of the calendar year 

immediately following the calendar year in which the Participant died, or by 

December 31 of the calendar year in which the Participant would have attained age 

70 1/2, if later, except to the extent that an election is made to receive distributions 

in accordance with the 5-year rule under (f) below. Under the 5-year rule, the 

Participant’s entire interest will be distributed to the Designated Beneficiary by 

December 31 of the calendar year containing the fifth anniversary of the 

Participant’s death. 

(ii) If the Participant’s surviving spouse is not the Participant’s sole Designated 

Beneficiary, distributions to the Designated Beneficiary will begin by December 31 of 

the calendar year immediately following the calendar year in which the Participant 

died, except to the extent that an election is made to receive distributions in 

accordance with the 5-year rule under (f) below. Under the 5-year rule, the 

Participant’s entire interest will be distributed to the Designated Beneficiary by 

December 31 of the calendar year containing the fifth anniversary of the 

Participant’s death. 

(iii) If there is no Designated Beneficiary as of September 30 of the year following the 

year of the Participant’s death, the Participant’s entire interest will be distributed by 

December 31 of the calendar year containing the fifth anniversary of the 

Participant’s death. 

Exhibit 13 Application Page 152
RESTATEMENT JANUARY 1, 2014 51 ARTICLE VII (7-6466)-1

(iv) If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary 

and the surviving spouse dies after the Participant but before distributions to the 

surviving spouse are required to begin, this (b)(2), other than (b)(2)(i), will apply as if 

the surviving spouse were the Participant. 

For purposes of this (b)(2) and (e) below, unless (b)(2)(iv) above applies, distributions are 

considered to begin on the Participant’s Required Beginning Date. If (b)(2)(iv) above 

applies, distributions are considered to begin on the date distributions are required to begin 

to the surviving spouse under (b)(2)(i) above. If distributions under an annuity meeting the 

requirements of this article commence to the Participant before the Participant’s Required 

Beginning Date (or to the Participant’s surviving spouse before the date distributions are 

required to begin to the surviving spouse under (b)(2)(i) above), the date distributions are 

considered to begin is the date distributions actually commence. 

(3) Forms of Distribution. Unless the Participant’s interest is distributed in the form of an 

annuity purchased from an insurance company or in a single sum on or before the 

Required Beginning Date, as of the first Distribution Calendar Year distributions will be 

made in accordance with (c), (d), and (e) below. If the Participant’s interest is distributed 

in the form of an annuity purchased from an insurance company, distributions thereunder 

will be made in accordance with the requirements of Code Section 401(a)(9) and section 

1.401(a)(9) of the regulations. Any part of the Participant’s interest that is in the form of an 

individual account described in Code Section 414(k) will be distributed in a manner 

satisfying the requirements of Code Section 401(a)(9) and section 1.401(a)(9) of the 

regulations that apply to individual accounts. 

(c) Determination of Amount to be Distributed Each Year. 

(1) General Annuity Requirements. If the Participant’s interest is paid in the form of annuity 

distributions under the Plan, payments under the annuity shall satisfy the following 

requirements: 

(i) the annuity distributions will be paid in periodic payments made at uniform intervals 

not longer than one year; 

(ii) the distribution period will be over the life (or lives) or over a period certain not 

longer than the period described in (d) or (e) below; 

(iii) once payments have begun over a period, the period may only be changed in 

accordance with (g) below; 

 (iv) payments will either be nonincreasing or increase only as follows: 

 A. by an annual percentage increase that does not exceed the percentage 

increase in an Eligible Cost-of-living Index for a 12-month period ending in the 

year during which the increase occurs or a prior year; 

 B. by a percentage increase that occurs at specified times and does not exceed 

the cumulative total of annual percentage increases in an Eligible Cost-ofliving Index since the Annuity Starting Date, or if later, the date of the most 

recent percentage increase; 

Exhibit 13 Application Page 153
RESTATEMENT JANUARY 1, 2014 52 ARTICLE VII (7-6466)-1

 C. by a constant percentage of less than 5 percent per year, applied not less 

frequently than annual; 

 D. as a result of dividend or other payments resulting from Actuarial Gains 

provided: 

 I. Actuarial Gain is measured not less frequently than annually, 

 II. the resulting dividend or other payments are either paid no later than 

the year following the year for which the actuarial experience is 

measured or paid in the same form as the payment of the annuity over 

the remaining period of the annuity (beginning no later than the year 

following the year for which the actuarial experience is measured), 

 III. the Actuarial Gain taken into account is limited to Actuarial Gain from 

investment experience, 

 IV. the assumed interest rate used to calculate such Actuarial Gains is not 

less than 3 percent, and 

 V. the annuity payments are not increased by a constant percentage as 

described in C. above; 

 E. to the extent of the reduction in the amount of the Participant’s payments to 

provide for a survivor benefit, but only if there is no longer a survivor benefit 

because the Beneficiary whose life was being used to determine the 

distribution period described in (d) below dies or is no longer the Participant’s 

Beneficiary pursuant to a qualified domestic relations order within the 

meaning of Code Section 414(p); 

 F. to provide a final payment upon the Participant’s death not greater than the 

excess of the actuarial present value of the Participant’s accrued benefit 

(within the meaning of Code Section 411(a)(7)) calculated as of the Annuity 

Starting Date using the Applicable Interest Rate and the Applicable Mortality 

Table (or if greater, the total amount of employee contributions) over the total 

payments before the Participant’s death; 

 G. to allow a Beneficiary to convert the survivor portion of a joint and survivor 

annuity into a single sum distribution upon the Participant’s death; or 

 H. to pay increased benefits resulting from a plan amendment. 

(2) Amount Required to be Distributed by Required Beginning Date and Later Payment 

Intervals. The amount that must be distributed on or before the Participant’s Required 

Beginning Date (or, if the Participant dies before distributions begin, the date distributions 

are required to begin under (b)(2)(i) or (ii) above) is the payment that is required for one 

payment interval. The second payment need not be made until the end of the next 

payment interval even if that payment interval ends in the next calendar year. All of the 

Participant’s benefit accruals as of the last day of the first Distribution Calendar Year will 

be included in the calculation of the amount of the annuity payments for payment intervals 

ending on or after the Participant’s Required Beginning Date. 

Exhibit 13 Application Page 154
RESTATEMENT JANUARY 1, 2014 53 ARTICLE VII (7-6466)-1

(3) Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing 

to the Participant in a calendar year after the first Distribution Calendar Year will be 

distributed beginning with the first payment interval ending in the calendar year 

immediately following the calendar year in which such amount accrues. 

(d) Requirements For Annuity Distributions That Commence During Participant’s Lifetime. 

(1) Joint Life Annuities Where the Beneficiary Is Not the Participant’s Spouse. If the 

Participant’s interest is being distributed in the form of a joint and survivor annuity for the 

joint lives of the Participant and a nonspouse Beneficiary, annuity payments to be made on 

or after the Participant’s Required Beginning Date to the Designated Beneficiary after the 

Participant’s death must not at any time exceed the applicable percentage of the annuity 

payment for such period that would have been payable to the Participant, using the table 

set forth in Q&A-2(c)(2), in the manner described in Q&A-2(c)(1), in section 1.401(a)(9)-6 

of the regulations, to determine the applicable percentage. If the form of distribution 

combines a joint and survivior annuity for the joint lives of the Participant and a nonspouse 

Beneficiary and a period certain annuity, the requirement in the preceding sentence will 

apply to annuity payments to be made to the Designated Beneficiary after the expiration of 

the period certain. 

(2) Period Certain Annuities. Unless the Participant’s spouse is the sole Designated 

Beneficiary and the form of distribution is a period certain and no life annuity, the period 

certain for an annuity distribution commencing during the Participant’s lifetime may not 

exceed the applicable distribution period for the Participant under the Uniform Lifetime 

Table set forth in Q&A-2 in section 1.401(a)(9)-9 of the regulations for the calendar year 

that contains the Annuity Starting Date. If the Annuity Starting Date precedes the year in 

which the Participant reaches age 70, the applicable distribution period for the Participant 

is the distribution period for age 70 under the Uniform Lifetime Table set forth in Q&A-2 in 

section 1.401(a)(9)-9 of the regulations plus the excess of 70 over the age of the 

Participant as of the Participant’s birthday in the year that contains the Annuity Starting 

Date. If the Participant’s spouse is the Participant’s sole Designated Beneficiary and the 

form of distribution is a period certain and no life annuity, the period certain may not 

exceed the longer of the Participant’s applicable distribution period, as determined under 

this (d)(2), or the joint life and last survivor expectancy of the Participant and the 

Participant’s spouse as determined under the Joint and Last Survivor Table set forth in 

Q&A-3 in section 1.401(a)(9)-9 of the regulations, using the Participant’s and spouse’s 

attained ages as of the Participant’s and spouse’s birthdays in the calendar year that 

contains the Annuity Starting Date. 

(e) Requirements For Minimum Distributions After the Participant’s Death. 

(1) Death After Distributions Begin. If the Participant dies after distribution of his interest 

begins in the form of an annuity meeting the requirements of this article, the remaining 

portion of the Participant’s interest will continue to be distributed over the remaining period 

over which distributions commenced. 

(2) Death Before Distributions Begin. 

(i) Participant Survived by Designated Beneficiary. Except to the extent that an 

election is made to receive distributions in accordance with the 5-year rule under (f) 

Exhibit 13 Application Page 155
RESTATEMENT JANUARY 1, 2014 54 ARTICLE VII (7-6466)-1

below, if the Participant dies before the date distribution of his interest begins and 

there is a Designated Beneficiary, the Participant’s entire interest will be distributed, 

beginning no later than the time described in (b)(2)(i) or (ii) above, over the life of 

the Designated Beneficiary or over a period certain not exceeding: 

A. unless the Annuity Starting Date is before the first Distribution Calendar Year, 

the Life Expectancy of the Designated Beneficiary determined using the 

Beneficiary’s age as of the Beneficiary’s birthday in the calendar year 

immediately following the calendar year of the Participant’s death; or 

B. if the Annuity Starting Date is before the first Distribution Calendar Year, the 

Life Expectancy of the Designated Beneficiary determined using the 

Beneficiary’s age as of the Beneficiary’s birthday in the calendar year that 

contains the Annuity Starting Date. 

Under the 5-year rule, the Participant’s entire interest will be distributed to the 

Designated Beneficiary by December 31 of the calendar year containing the fifth 

anniversary of the Participant’s death. 

(ii) No Designated Beneficiary. If the Participant dies before the date distributions begin 

and there is no Designated Beneficiary as of September 30 of the year following the 

year of the Participant’s death, distribution of the Participant’s entire interest will be 

completed by December 31 of the calendar year containing the fifth anniversary of 

the Participant’s death. 

(iii) Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the 

Participant dies before the date distribution of his interest begins, the Participant’s 

surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving 

spouse dies before distributions to the surviving spouse begin, this (e) will apply as 

if the surviving spouse were the Participant, except that the time by which 

distributions must begin will be determined without regard to (b)(2)(i) above. 

(f) Election of 5-year Rule. Participants or Beneficiaries may elect on an individual basis whether 

the 5-year rule in (b)(2) and (e) above applies to distributions after the death of a Participant who 

has a Designated Beneficiary. The election must be made no later than the earlier of 

September 30 of the calendar year in which the distribution would be required to begin under 

(b)(2) above if no such election is made, or by September 30 of the calendar year which contains 

the fifth anniversary of the Participant’s (or, if applicable, surviving spouse’s) death. 

(g) Changes to Annuity Payment Period. 

(1) Permitted Changes. An annuity payment period may be changed only in association with 

an annuity payment increase described in (c)(1)(iv) above or in accordance with (2) below. 

(2) Reannuitization. An annuity payment may be changed and the annuity payments modified 

in accordance with that change if the conditions in (3) below are satisfied and: 

(i) the modification occurs when the Participant retires or in connection with a plan 

termination; 

Exhibit 13 Application Page 156
RESTATEMENT JANUARY 1, 2014 55 ARTICLE VII (7-6466)-1

(ii) the payment period prior to modification is a period certain without life 

contingencies; or 

(iii) the annuity payments after modification are paid under a qualified joint and survivor 

annuity over the joint lives of the Participant and a Designated Beneficiary, the 

Participant’s spouse is the sole Designated Beneficiary, and the modification occurs 

in connection with the Participant’s becoming married to such spouse. 

(3) Conditions. The conditions in this (3) are satisfied if: 

(i) the future payments after the modification satisfy the requirements of Code Section 

401(a)(9), section 1.401(a)(9) of the regulations, and this article (determined by 

treating the date of the change as a new Annuity Starting Date and the actuarial 

present value of the remaining payments prior to modification as the entire interest 

of the Participant); 

(ii) for purposes of Code Sections 415 and 417, the modification is treated as a new 

Annuity Starting Date; 

(iii) after taking into account the modification, the annuity (including all past and future 

payments) satisfies Code Section 415 (determined at the original Annuity Starting 

Date, using the interest rates and mortality tables applicable to such date); and 

(iv) the end point of the period certain, if any, for any modified payment period is not 

later than the end point available to the Participant at the original Annuity Starting 

Date under Code Section 401(a)(9) and this article. 

(h) Payments to a Surviving Child. 

(1) Special Rule. For purposes of this article, payments made to a Participant’s surviving child 

until the child reaches the age of majority (or dies, if earlier) shall be treated as if such 

payments were made to the surviving spouse to the extent the payments become payable 

to the surviving spouse upon cessation of the payments to the child. 

(2) Age of Majority. For purposes of this (h), a child shall be treated as having not reached the 

age of majoirty if the child has not completed a specified course of education and is under 

the age of 26. In addition, a child who is disabled within the meaning of Code Section 

72(m)(7) when the child reaches the age of majority shall be treated as having not reached 

the age of majority so long as the child continues to be disabled. 

SECTION 7.04--TEFRA SECTION 242(b)(2) ELECTIONS. 

(a) Notwithstanding the other requirements of this article and subject to the joint and survivor annuity 

requirements of Article VI, distribution on behalf of any Participant, including a 5-percent Owner, 

who has made a designation under section 242(b)(2) of the Tax Equity and Fiscal Responsibility 

Act (a section 242(b)(2) election) may be made in accordance with all of the following 

requirements (regardless of when such distribution commences): 

(1) The distribution by the Plan is one that would not have disqualified such Plan under Code 

Section 401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of 1984. 

Exhibit 13 Application Page 157
RESTATEMENT JANUARY 1, 2014 56 ARTICLE VII (7-6466)-1

(2) The distribution is in accordance with a method of distribution designated by the 

Participant whose interest in the Plan is being distributed or, if the Participant is deceased, 

by a Beneficiary of such Participant. 

(3) Such designation was in writing, was signed by the Participant or the Beneficiary, and was 

made before January 1, 1984. 

(4) The Participant had accrued a benefit under the Plan as of December 31, 1983. 

(5) The method of distribution designated by the Participant or the Beneficiary specifies the 

time at which distribution will commence, the period over which distributions will be made, 

and in the case of any distribution upon the Participant’s death, the Beneficiaries of the 

Participant listed in order of priority. 

(b) A distribution upon death will not be covered by this transitional rule unless the information in the 

designation contains the required information described above with respect to the distributions to 

be made upon the death of the Participant. 

(c) For any distribution that commences before January 1, 1984, but continues after December 31, 

1983, the Participant, or the Beneficiary, to whom such distribution is being made, will be 

presumed to have designated the method of distribution under which the distribution is being 

made if the method of distribution was specified in writing and the distribution satisfies the 

requirements in (a)(1) and (5) above. 

(d) If a designation is revoked, any subsequent distribution must satisfy the requirements of Code 

Section 401(a)(9) and the regulations thereunder. If a designation is revoked subsequent to the 

date distributions are required to begin, the Plan must distribute by the end of the calendar year 

following the calendar year in which the revocation occurs the total amount not yet distributed 

that would have been required to have been distributed to satisfy Code Section 401(a)(9) and the 

regulations thereunder, but for the section 242(b)(2) election. For calendar years beginning after 

December 31, 1988, such distributions must meet the minimum distribution incidental benefit 

requirements. Any changes in the designation will be considered to be a revocation of the 

designation. However, the mere substitution or addition of another Beneficiary (one not named in 

the designation) under the designation will not be considered to be a revocation of the 

designation, so long as such substitution or addition does not alter the period over which 

distributions are to be made under the designation, directly or indirectly (for example, by altering 

the relevant measuring life). 

(e) In the case in which an amount is transferred or rolled over from one plan to another plan, the 

rules in Q&A-14 and Q&A-15 in section 1.401(a)(9)-8 of the regulations shall apply. 

Exhibit 13 Application Page 158
RESTATEMENT JANUARY 1, 2014 57 ARTICLE VIII (7-6466)-1

ARTICLE VIII

TERMINATION OF OR WITHDRAWAL FROM THE PLAN 

SECTION 8.01--TERMINATION OF THE PLAN. 

The Plan may be terminated by amendment or by withdrawal of every Employer. The Plan may also be 

terminated through proceedings instituted by the Pension Benefit Guaranty Corporation (PBGC). 

In the event of a partial termination of this Plan, the rights of all affected Participants to benefits accrued 

as of the date of such partial termination (to the extent funded as of such date) shall be nonforfeitable. 

In the event of the complete termination of this Plan, the rights of all affected Participants to benefits 

accrued as of the date of such termination shall be nonforfeitable; however, upon termination of the Plan, the 

relevant provisions of the Multiemployer Act shall apply. Upon complete termination of the Plan, no further 

Employees shall become Participants, and no further Contributions shall be made except as required by any 

governmental agency to which the Plan's termination is subject. In the event of a termination of the Plan by 

an amendment to the Plan, the Trustee shall make all reports and adhere to all rules and standards of 

administration of terminated plans established by the PBGC for the protection of the interests of the 

Participants and Beneficiaries. In the event of a termination of the Plan by mass withdrawal, as the term is 

used in ERISA and modified by the Multiemployer Act and the Pension Protection Act, the Trustee will give all 

notices and take all actions required under applicable laws and regulations in such cases. 

SECTION 8.02 – WITHDRAWAL FROM THE PLAN. 

In the event of the complete or partial withdrawal of a participating Employer from the Plan, the Trustee 

shall take all steps for the proper notification of the participating Employers and any other parties, and the 

determination and the collection of the withdrawal liability (as defined in ERISA and modified by the 

Multiemployer Act and the Pension Protection Act), if any, from a participating Employer. 

Exhibit 13 Application Page 159
RESTATEMENT JANUARY 1, 2014 58 ARTICLE IX (7-6466)-1

ARTICLE IX

ADMINISTRATION OF THE PLAN

SECTION 9.01--ADMINISTRATION.

Subject to the provisions of this article, the Plan Administrator has complete control of the 

administration of the Plan. The Plan Administrator has all the powers necessary for it to properly carry out its 

administrative duties. Not in limitation, but in amplification of the foregoing, the Plan Administrator has 

complete discretion to construe or interpret the provisions of the Plan, including ambiguous provisions, if any, 

and to determine all questions that may arise under the Plan, including all questions relating to the eligibility of 

Employees to participate in the Plan and the amount of benefit to which any Participant, Beneficiary, spouse, 

or Contingent Annuitant may become entitled. The Plan Administrator's decisions upon all matters within the 

scope of its authority shall be final. 

Unless otherwise set out in the Plan or Annuity Contract, the Plan Administrator may delegate 

recordkeeping and other duties that are necessary to assist it with the administration of the Plan to any person 

or firm which agrees to accept such duties. The Plan Administrator shall be entitled to rely upon all tables, 

valuations, certificates and reports furnished by the consultant or actuary appointed by the Plan Administrator 

and upon all opinions given by any counsel selected or approved by the Plan Administrator. 

The Plan Administrator shall receive all claims for benefits by Participants, former Participants, 

Beneficiaries, spouses, and Contingent Annuitants. The Plan Administrator shall determine all facts 

necessary to establish the right of any Claimant to benefits and the amount of those benefits under the 

provisions of the Plan. The Plan Administrator may establish rules and procedures to be followed by 

Claimants in filing claims for benefits, in furnishing and verifying proofs necessary to determine age, and in 

any other matters required to administer the Plan. 

SECTION 9.02--EXPENSES.

Expenses of the Plan, to the extent that a participating Employer does not pay such expenses, may be 

paid out of the assets of the Plan provided that such payment is consistent with ERISA. Expenses of the Plan 

will be paid in accordance with the most recent service and expense agreement or such other documents duly 

entered into by or with regard to the Plan that govern such matters. Such expenses include, but are not 

limited to, expenses for bonding required by ERISA; expenses for recordkeeping and other administrative 

services; fees and expenses of the Trustee or Annuity Contract; expenses for investment education service; 

and direct costs that the Trustee incurs with respect to the Plan. 

SECTION 9.03--RECORDS.

All acts and determinations of the Plan Administrator shall be duly recorded. All these records, together 

with other documents necessary for the administration of the Plan, shall be preserved in the Plan 

Administrator's custody. 

Writing (handwriting, typing, printing), photostating, photographing, microfilming, magnetic impulse, 

mechanical or electrical recording, or other forms of data compilation shall be acceptable means of keeping 

records. 

Exhibit 13 Application Page 160
RESTATEMENT JANUARY 1, 2014 59 ARTICLE IX (7-6466)-1

SECTION 9.04--INFORMATION AVAILABLE.

Any Participant in the Plan or any Beneficiary may examine copies of the summary plan description, the 

latest annual report, any bargaining agreement, this Plan, the Annuity Contract, or any other instrument under 

which the Plan was established or is operated. The Plan Administrator shall maintain all of the items listed in 

this section in its office, or in such other place or places as it may designate in order to comply with 

governmental regulations. These items may be examined during reasonable business hours. Upon the 

written request of a Participant or Beneficiary receiving benefits under the Plan, the Plan Administrator shall 

furnish him with a copy of any of these items. The Plan Administrator may make a reasonable charge to the 

requesting person for the copy. 

SECTION 9.05--CLAIM PROCEDURES.

A Claimant must submit any necessary forms and needed information when making a claim for benefits 

under the Plan. 

If a claim for benefits under the Plan is wholly or partially denied, the Plan Administrator shall provide 

adequate written notice to the Claimant whose claim for benefits under the Plan has been denied. The notice 

must be furnished within 90 days of the date that the claim is received by the Plan without regard to whether 

all of the information necessary to make a benefit determination is received. The Claimant shall be notified in 

writing within this initial 90-day period if special circumstances require an extension of the time needed to 

process the claim. The notice shall indicate the special circumstances requiring an extension of time and the 

date by which the Plan Administrator's decision is expected to be rendered. In no event shall such extension 

exceed a period of 90 days from the end of the initial 90-day period. 

The Plan Administrator's notice to the Claimant shall: (i) specify the reason or reasons for the denial; (ii) 

reference the specific Plan provisions on which the denial is based; (iii) describe any additional material and 

information needed for the Claimant to perfect his claim for benefits; (iv) explain why the material and 

information is needed; and (v) inform the Claimant of the Plan’s appeal procedures and the time limits 

applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under ERISA 

Section 502(a) following an adverse benefit determination on appeal. 

Any appeal made by a Claimant must be made in writing to the Plan Administrator within 60 days after 

receipt of the Plan Administrator’s notice of denial of benefits. If the Claimant appeals to the Plan 

Administrator, the Claimant may submit written comments, documents, records, and other information relating 

to the claim for benefits. The Claimant shall be provided, upon request and free of charge, reasonable access 

to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits. 

The Plan Administrator shall review the claim taking into account all comments, documents, records, and other 

information submitted by the Claimant relating to the claim, without regard to whether such information was 

submitted or considered in the initial benefit determination. 

The Plan Administrator shall provide adequate written notice to the Claimant of the Plan’s benefit 

determination on review. The notice must be furnished within 60 days of the date that the request for review is 

received by the Plan without regard to whether all of the information necessary to make a benefit 

determination on review is received. The Claimant shall be notified in writing within this initial 60-day period if 

special circumstances require an extension of the time needed to process the claim. The notice shall indicate 

the special circumstances requiring an extension of time and the date by which the Plan Administrator expects 

to render the determination on review. In no event shall such extension exceed a period of 60 days from the 

end of the initial 60-day period. 

Exhibit 13 Application Page 161
RESTATEMENT JANUARY 1, 2014 60 ARTICLE IX (7-6466)-1

In the event the benefit determination is being made by a committee or board of trustees that hold 

regularly scheduled meetings at least quarterly, the above paragraph shall not apply. The benefit 

determination must be made by the date of the meeting of the committee or board that immediately follows the 

Plan’s receipt of a request for review, unless the request for review is filed within 30 days preceding the date 

of such meeting. In such case, the benefit determination must be made by the date of the second meeting 

following the Plan’s receipt of the request for review. The date of the receipt of the request for review shall be 

determined without regard to whether all of the information necessary to make a benefit determination on 

review is received. The Claimant shall be notified in writing within this initial period if special circumstances 

require an extension of the time needed to process the claim. The notice shall indicate the special 

circumstances requiring an extension of time and the date by which the committee or board expects to render 

the determination on review. In no event shall such benefit determination be made later than the third meeting 

of the committee or board following the Plan’s receipt of the request for review. The Plan Administrator shall 

provide adequate written notice to the Claimant of the Plan’s benefit determination on review as soon as 

possible, but not later than five days after the benefit determination is made. 

If the claim for benefits is wholly or partially denied on review, the Plan Administrator’s notice to the 

Claimant shall: (i) specify the reason or reasons for the denial; (ii) reference the specific Plan provisions on 

which the denial is based; (iii) include a statement that the Claimant is entitled to receive, upon request and 

free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to 

the Claimant’s claim for benefits; and (iv) include a statement of the Claimant’s right to bring a civil action 

under ERISA Section 502(a). Any civil action under (iv) must be filed no later than one year after the date on 

the Plan Administrator’s notice. 

A Claimant may authorize a representative to act on the Claimant’s behalf with respect to a benefit 

claim or appeal of an adverse benefit determination. Such authorization shall be made by completion of a 

form furnished for that purpose. In the absence of any contrary direction from the Claimant, all information 

and notifications to which the Claimant is entitled shall be directed to the authorized representative. 

The Plan Administrator shall perform periodic examinations, reviews, or audits of benefit claims to 

determine whether claims determinations are made in accordance with the governing Plan documents and, 

where appropriate, Plan provisions have been consistently applied with respect to similarly situated Claimants. 

Disability Claim Procedures. In the case of a claim for disability benefits, the above provisions will be 

modified as provided below. 

If a claim for disability benefits under the Plan is wholly or partially denied, the Plan Administrator shall 

provide adequate written notice to the Claimant whose claim for benefits under the Plan has been denied. 

The notice must be furnished within 45 days of the date that the claim is received by the Plan without regard to 

whether all of the information necessary to make a benefit determination is received. The period for furnishing 

the notice may be extended for up to 30 days if the Plan Administrator both determines an extension is 

necessary due to matters beyond the control of the Plan and notifies the Claimant in writing within this initial 

45-day period. The notice shall indicate the circumstances requiring the extension of time and the date by 

which the Plan expects to render a decision. If prior to the end of the first 30-day extension period, the Plan 

Administrator determines that, due to matters beyond the control of the Plan, a decision cannot be rendered 

within that extension period, the period may be extended for up to an additional 30 days, provided the Plan 

Administrator notifies the Claimant in writing, within the first 30-day extension period, of the circumstances 

requiring the extension and the date by which the Plan expects to render a decision. In the case of any 

extension, the notice of extension shall specifically explain the standards on which entitlement to a benefit is 

based, the unresolved issues that prevent a decision on the claim, and the additional information needed to 

resolve those issues. The Claimant shall be afforded at least 45 days within which to provide the specified 

information. 

Exhibit 13 Application Page 162
RESTATEMENT JANUARY 1, 2014 61 ARTICLE IX (7-6466)-1

In the event that a period of time is extended due to a Claimant’s failure to submit information 

necessary to decide a claim, the period for making the benefit determination shall be tolled from the date on 

which the notification of the extension is sent to the Claimant until the date on which the Claimant responds to 

the request for additional information. 

The Plan Administrator's notice to the Claimant shall: (i) specify the reason or reasons for the denial; (ii) 

reference the specific Plan provisions on which the denial is based; (iii) describe any additional material and 

information needed for the Claimant to perfect his claim for benefits; (iv) explain why the material and 

information is needed; (v) inform the Claimant of the Plan’s appeal procedures and the time limits applicable to 

such procedures, including a statement of the Claimant’s right to bring a civil action under ERISA Section 

502(a) following an adverse benefit determination on appeal; (vi) provide the Claimant with any internal rule, 

guideline, protocol, or other similar criterion that was relied upon in making the adverse determination or a 

statement that such rule, guideline, protocol, or other similar criterion was relied upon and a copy will be 

provided free of charge upon request; and (vii) provide the Claimant with an explanation of any scientific or 

clinical judgment for the determination if benefit determination is based on a medical necessity or experimental 

treatment or similar exclusion or limit or a statement that the benefit is based on such an exclusion or limit and 

such explanation will be provided free of charge. 

Any appeal made by a Claimant must be in writing to the Plan Administrator within 180 days after 

receipt of the Plan Administrator’s notice of denial of benefits. The Claimant may submit written comments, 

documents, records, and other information relating to the claim for benefits. The Claimant shall be provided, 

upon request and free of charge, reasonable access to, and copies of, all documents, records, and other 

information relevant to the Claimant’s claim for benefits. The Plan Administrator shall review the claim taking 

into account all comments, documents, records, and other information submitted by the Claimant relating to 

the claim, without regard to whether such information was submitted or considered in the initial benefit 

determination. The review shall not afford deference to the initial adverse benefit determination and shall be 

conducted by an appropriate named fiduciary who is neither the individual who made the adverse benefit 

determination that is the subject of the appeal, nor the subordinate of such individual. If the adverse benefit 

determination is based in whole or in part on a medical judgment, the appropriate named fiduciary shall 

consult with a health care professional who has appropriate training and experience in the field of medicine 

involved in the medical judgment. Such health care professional shall be an individual who is neither an 

individual who was consulted in connection with the adverse benefit determination that is the subject of the 

appeal, nor the subordinate of such individual. The Claimant shall be provided with the identity of medical or 

vocational experts whose advice was obtained on behalf of the Plan in connection with the adverse benefit 

determination, without regard to whether the advice was relied on. 

The Plan Administrator shall provide adequate written notice to the Claimant of the Plan’s benefit 

determination on review. The notice must be furnished within 45 days of the date that the request for review is 

received by the Plan without regard to whether all of the information necessary to make a benefit 

determination on review is received. The Claimant shall be notified in writing within this initial 45-day period if 

special circumstances require an extension of the time needed to process the claim. The notice shall indicate 

the special circumstances requiring an extension of time and the date by which the Plan Administrator expects 

to render the determination on review. In no event shall such extension exceed a period of 45 days from the 

end of the initial 45-day period. 

In the event the benefit determination is being made by a committee or board of trustees that hold 

regularly scheduled meetings at least quarterly, the above paragraph shall not apply. The benefit 

determination must be made by the date of the meeting of the committee or board that immediately follows the 

Plan’s receipt of a request for review, unless the request for review is filed within 30 days preceding the date 

of such meeting. In such case, the benefit determination must be made by the date of the second meeting 

Exhibit 13 Application Page 163
RESTATEMENT JANUARY 1, 2014 62 ARTICLE IX (7-6466)-1

following the Plan’s receipt of the request for review. The date of the receipt of the request for review shall be 

determined without regard to whether all of the information necessary to make a benefit determination on 

review is received. The Claimant shall be notified in writing within this initial period if special circumstances 

require an extension of the time needed to process the claim. The notice shall indicate the special 

circumstances requiring an extension of time and the date by which the committee or board expects to render 

the determination on review. In no event shall such benefit determination be made later than the third meeting 

of the committee or board following the Plan’s receipt of the request for review. The Plan Administrator shall 

provide adequate written notice to the Claimant of the Plan’s benefit determination on review as soon as 

possible, but not later than five days after the benefit determination is made. 

To the extent that a period of time is extended due to a Claimant’s failure to submit information 

necessary to decide a claim, the period for making the benefit determination on review shall be tolled from the 

date on which the notification of the extension is sent to the Claimant until the date on which the Claimant 

responds to the request for additional information. 

If the claim for disability benefits is wholly or partially denied on review, the Plan Administrator’s notice 

to the Claimant shall: (i) specify the reason or reasons for the denial; (ii) reference the specific Plan provisions 

on which the denial is based; (iii) include a statement that the Claimant is entitled to receive, upon request and 

free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to 

the Claimant’s claim for benefits; (iv) include a statement of the Claimant’s right to bring a civil action under 

ERISA Section 502(a); (v) provide the Claimant with any internal rule, guideline, protocol, or other similar 

criterion that was relied upon in making the adverse determination or a statement that such rule, guideline, 

protocol, or other similar criterion was relied upon and a copy will be provided free of charge upon request; (vi) 

provide the Claimant with an explanation of any scientific or clinical judgment for the determination if benefit 

determination is based on a medical necessity or experimental treatment or similar exclusion or limit or a 

statement that the benefit is based on such an exclusion or limit and such explanation will be provided free of 

charge; and (vii) provide the Claimant with the following statement: “You and your plan may have other 

voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available 

is to contact your local U.S. Department of Labor Office and your State insurance regulatory agency.” Any 

civil action under (iv) must be filed no later than one year after the date on the Plan Administrator’s notice. 

SECTION 9.06--EXERCISE OF DISCRETIONARY AUTHORITY. 

The Plan Administrator, and any other person or entity who has authority with respect to the 

management, administration, or investment of the Plan may exercise that authority in its full discretion, subject 

only to the duties imposed under ERISA. This discretionary authority includes, but is not limited to, the 

authority to make any and all factual determinations and interpret all terms and provisions of the Plan 

documents relevant to the issue under consideration. The exercise of authority will be binding upon all 

persons. 

Exhibit 13 Application Page 164
RESTATEMENT JANUARY 1, 2014 63 ARTICLE X (7-6466)-1

ARTICLE X

GENERAL PROVISIONS

SECTION 10.01--AMENDMENTS.

The Trustee may amend this Plan at any time. Such amendments shall include any remedial 

retroactive changes (within the time specified by Internal Revenue Service regulations) to comply with any law 

or regulation issued by any governmental agency to which the Plan is subject. 

An amendment may not allow reversion or diversion of Plan assets to any participating Employer at any 

time, except as may be required to comply with any law or regulation issued by any governmental agency to 

which the Plan is subject. 

An amendment may not eliminate or reduce a section 411(d)(6) protected benefit, as defined in Q&A-1 

in section 1.411(d)-4 of the regulations, that has already accrued, except as provided in section 1.411(d)-3 or 

1.411(d)-4 of the regulations. This is generally the case even if such elimination or reduction is contingent 

upon the Employee’s consent. However, the Plan may be amended to eliminate or reduce section 411(d)(6) 

protected benefits with respect to benefits not yet accrued as of the later of the amendment’s adoption date or 

effective date without violating Code Section 411(d)(6). Notwithstanding the preceding sentences, a 

Participant's Accrued Benefit, early retirement benefit, retirement-type subsidy, or optional form of benefit may 

be reduced to the extent permitted under Code Section 412(d)(2). 

An amendment shall not decrease a Participant's vested interest in the Plan. If an amendment to the 

Plan changes the computation of the percentage used to determine that portion of a Participant's Accrued 

Benefit attributable to Employer Contributions that is nonforfeitable (whether directly or indirectly), in the case 

of an Employee who is a Participant as of the later of the date such amendment or change is adopted or the 

date it becomes effective, the nonforfeitable percentage (determined as of such date) of such Employee's right 

to his employer-provided Accrued Benefit shall not be less than the percentage computed under the Plan 

without regard to such amendment or change. Furthermore, each Participant or former Participant 

(a) who has completed at least three Years of Service on the date the election period described 

below ends (five Years of Service if the Participant does not have at least one Hour of Service in 

a Plan Year beginning after December 31, 1988) and 

(b) whose nonforfeitable percentage will be determined on any date after the date of the change 

may elect, during the election period, to have the nonforfeitable percentage of his Accrued Benefit that results 

from Employer Contributions determined without regard to the amendment. This election may not be revoked. 

If after the Plan is changed, the Participant’s nonforfeitable percentage will at all times be as great as it would 

have been if the change had not been made, no election needs to be provided. The election period shall 

begin no later than the date the Plan amendment is adopted and end no earlier than the 60th day after the 

latest of the date the amendment is adopted or becomes effective, or the date the Participant is issued written 

notice of the amendment by the Plan Administrator. 

If the vesting schedule is amended, the vested percentage of each Participant affected by such 

amendment will be the greater of the vested percentage under the old vesting schedule or the vested 

percentage under the new vesting schedule. 

Exhibit 13 Application Page 165
RESTATEMENT JANUARY 1, 2014 64 ARTICLE X (7-6466)-1

All written amendments must be signed by at least one employer Trustee and one employee Trustee or 

the Plan Administrator at the direction of the Trustees. 

SECTION 10.02--DIRECT ROLLOVERS.

Notwithstanding any provision of the Plan to the contrary that would otherwise limit a Distributee's 

election under this section, a Distributee may elect, at the time and in the manner prescribed by the Plan 

Administrator, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement 

Plan specified by the Distributee in a Direct Rollover. 

In the event of a Mandatory Distribution of an Eligible Rollover Distribution greater than $1,000 in 

accordance with the SMALL AMOUNTS SECTION of this article, if the Participant does not elect to have such 

distribution paid directly to an Eligible Retirement Plan specified by the Participant in a Direct Rollover or to 

receive the distribution directly, the Plan Administrator will pay the distribution in a Direct Rollover to an 

individual retirement plan designated by the Plan Administrator. 

In the event of any other Eligible Rollover Distribution to a Distributee in accordance with the SMALL 

AMOUNTS SECTION of this article, if the Distributee does not elect to have such distribution paid directly to 

an Eligible Retirement Plan specified by the Distributee in a Direct Rollover or to receive the distribution 

directly, the Plan Administrator will pay the distribution to the Distributee. 

SECTION 10.03--MERGERS AND DIRECT TRANSFERS.

The Plan may not be merged or consolidated with, nor have its assets or liabilities transferred to, any 

other retirement plan, unless each Participant in this Plan would (if that plan then terminated) receive a benefit 

immediately after the merger, consolidation, or transfer that is equal to or greater than the benefit the 

Participant would have been entitled to receive immediately before the merger, consolidation, or transfer (if 

this Plan had then terminated). The Trustee may enter into merger agreements or direct transfer of assets 

agreements with the trustees or employers under other retirement plans that are qualifiable under Code 

Section 401(a), including an elective transfer, and may accept the direct transfer of plan assets, or may 

transfer plan assets, as a party to any such agreement. 

The Plan may accept a direct transfer of plan assets on behalf of an Eligible Employee. If the Eligible 

Employee is not an Active Participant when the transfer is made, the Eligible Employee shall be deemed to be 

an Active Participant only for the purpose of investment and distribution of the transferred assets. He may not 

accrue benefits until the time he meets all of the requirements to become an Active Participant. If he 

terminates employment prior to becoming an Active Participant, his transferred assets may be distributed to 

him as if they were employer-derived accrued benefits. 

A Participant’s section 411(d)(6) protected benefits, as defined in Q&A-1 in section 1.411(d)-(4) of the 

regulations, may not be eliminated by reason of transfer or any transaction amending or having the effect of 

amending a plan or plans to transfer benefits. However, a Participant’s section 411(d)(6) protected benefits 

may be eliminated or reduced if a transfer is an elective transfer of certain distributable benefits between 

qualified plans and the conditions in Q&A-3(c)(1) in section 1.411(d)-4 of the regulations are met. The rules 

applicable to distributions under the plan would apply to the transfer, but the transfer would not be treated as a 

distribution for purposes of the minimum distribution requirements of Code Section 401(a)(9). If the 

Participant is eligible to receive an immediate distribution of his entire nonforfeitable accrued benefit in a 

single sum distribution that would consist entirely of an eligible rollover distribution under Code Section 

401(a)(31), such transfer will be accomplished as a direct rollover under Code Section 401(a)(31). 

Exhibit 13 Application Page 166
RESTATEMENT JANUARY 1, 2014 65 ARTICLE X (7-6466)-1

SECTION 10.04--PROVISIONS RELATING TO THE INSURER AND OTHER PARTIES.

The obligations of an Insurer shall be governed solely by the provisions of the Annuity Contract. The 

Insurer shall not be required to perform any act not provided in or contrary to the provisions of the Annuity 

Contract. Each Annuity Contract when purchased shall comply with the Plan. See the CONSTRUCTION 

SECTION of this article. 

Any issuer or distributor of investment contracts or securities is governed solely by the terms of its 

policies, written investment contract, prospectuses, security instruments, and any other written agreements 

entered into with the Trustee with regard to such investment contracts or securities. 

Such Insurer, issuer or distributor is not a party to the Plan, nor bound in any way by the Plan 

provisions. Such parties shall not be required to look to the terms of this Plan, nor to determine whether the 

Trustee has the authority to act in any particular manner or to make any contract or agreement. 

Until notice of any amendment or termination of this Plan or a change in Trustee has been received by 

the Insurer at its home office or an issuer or distributor at their principal address, they are and shall be fully 

protected in assuming that the Plan has not been amended or terminated and in dealing with any party acting 

as Trustee according to the latest information that they have received at their home office or principal address. 

SECTION 10.05--EMPLOYMENT STATUS.

Nothing contained in this Plan gives an Employee the right to be retained in a participating Employer's 

employ or to interfere with such participating Employer's right to discharge any Employee. 

SECTION 10.06--RIGHTS TO PLAN ASSETS.

An Employee shall not have any right to or interest in any assets of the Plan upon termination of 

employment or otherwise except as specifically provided under this Plan, and then only to the extent of the 

benefits payable to such Employee according to the Plan provisions. 

Any final payment or distribution to a Participant or his legal representative or to any Beneficiaries, 

spouse, or Contingent Annuitant of such Participant under the Plan provisions shall be in full satisfaction of all 

claims against the Plan, the Trustee, and any participating Employer arising under or by virtue of the Plan. 

SECTION 10.07--BENEFICIARY.

Each Participant may name a Beneficiary to receive any death benefit (other than any income payable 

to a Contingent Annuitant) that may arise out of his participation in the Plan. The Participant may change his 

Beneficiary from time to time. Unless a qualified election has been made, for purposes of distributing any 

death benefits before the Participant’s Retirement Date, the Beneficiary of a Participant who has a spouse 

who is entitled to a Qualified Preretirement Survivor Annuity shall be the Participant's spouse. The 

Participant's Beneficiary designation and any change of Beneficiary shall be subject to the provisions of the 

ELECTION PROCEDURES SECTION of Article VI. 

It is the responsibility of the Participant to give written notice to the Plan Administrator of the name of 

the Beneficiary on a form furnished for that purpose. The Plan Administrator shall maintain records of 

Beneficiary designations for Participants before their Retirement Dates. However, the Plan Administrator may 

delegate to another party the responsibility of maintaining records of Beneficiary designations. In that event, 

the written designations made by Participants shall be filed with such other party. If a party other than the 

Exhibit 13 Application Page 167
RESTATEMENT JANUARY 1, 2014 66 ARTICLE X (7-6466)-1

Insurer maintains the records of Beneficiary designations and a Participant dies before his Retirement Date, 

such other party shall certify to the Insurer the Beneficiary designation on its records for the Participant. 

If there is no Beneficiary named or surviving when a Participant dies, the Participant’s Beneficiary shall 

be the Participant’s surviving spouse, or where there is no surviving spouse, the executor or administrator of 

the Participant’s estate. 

SECTION 10.08--NONALIENATION OF BENEFITS.

Benefits payable under the Plan are not subject to the claims of any creditor of any Participant, 

Beneficiary, spouse, or Contingent Annuitant. A Participant, Beneficiary, spouse, or Contingent Annuitant 

does not have any rights to alienate, anticipate, commute, pledge, encumber, or assign such benefits. The 

preceding sentences shall also apply to the creation, assignment, or recognition of a right to any benefit 

payable with respect to a Participant according to a domestic relations order, unless such order is determined 

by the Plan Administrator to be a qualified domestic relations order, as defined in Code Section 414(p), or any 

domestic relations order entered before January 1, 1985. The preceding sentences shall not apply to any 

offset of a Participant’s benefits provided under the Plan against an amount the Participant is required to pay 

the Plan with respect to a judgment, order, or decree issued, or a settlement entered into, on or after 

August 5, 1997, that meets the requirements of Code Sections 401(a)(13)(C) or (D). 

SECTION 10.09--CONSTRUCTION.

The validity of the Plan or any of its provisions is determined under and construed according to Federal 

law and, to the extent permissible, according to the laws of the state in which the Trustee has its principal 

office. In case any provision of this Plan is held illegal or invalid for any reason, such determination shall not 

affect the remaining provisions of this Plan, and the Plan shall be construed and enforced as if the illegal or 

invalid provision had never been included. 

In the event of any conflict between the provisions of the Plan and the terms of any Annuity Contract 

issued hereunder, the provisions of the Plan control. 

SECTION 10.10--LEGAL ACTIONS.

No person employed by a participating Employer; no Participant, former Participant, or their 

Beneficiaries; nor any other person having or claiming to have an interest in the Plan is entitled to any notice 

of process. A final judgment entered in any such action or proceeding shall be binding and conclusive on all 

persons having or claiming to have an interest in the Plan. Should any Participant, Beneficiary or other person 

claiming interest in the Plan pursue legal action against the Plan, such legal action may not be brought more 

than two years following the date such cause of action or proceeding arose. 

SECTION 10.11--SMALL AMOUNTS.

If the Present Value of the Participant’s Vested Accrued Benefit does not exceed $5,000, and the 

Participant has not had an Annuity Starting Date with respect to any portion of such Vested Accrued Benefit, 

the Present Value of the Participant’s entire Vested Accrued Benefit shall be distributed as of the earliest of 

his Retirement Date or the date he has a Severance from Employment for any reason other than death (the 

date the participating Employer provides notice to the record keeper of the Plan of such event, if later). For 

purposes of this section, if the Present Value of the Participant’s Vested Accrued Benefit is zero, the 

Participant shall be deemed to have received a distribution of such Present Value. This is a small amounts 

payment. Such small amounts payment shall result in all of a Participant’s Accrued Benefit being disregarded 

Exhibit 13 Application Page 168
RESTATEMENT JANUARY 1, 2014 67 ARTICLE X (7-6466)-1

and is in full settlement of all benefits otherwise payable. See the DISREGARD OF ACCRUED BENEFIT 

SECTION of Article IV. 

In the event a Participant has a Severance from Employment (for any reason other than death or 

retirement) and does not elect to have a small amounts payment paid directly to an Eligible Retirement Plan 

specified by the Participant in a Direct Rollover or to receive the distribution directly and the Present Value of 

his Vested Accrued Benefit is greater than $1,000, a Mandatory Distribution will be made in accordance with 

the DIRECT ROLLOVERS SECTION of this article. If the Present Value of his Vested Accrued Benefit is 

$1,000 or less, the Present Value of the Participant’s entire Vested Accrued Benefit shall be paid directly to 

him. 

If the Present Value of the Qualified Preretirement Survivor Annuity derived from the Participant’s 

Accrued Benefit does not exceed $5,000, on the date of the Participant’s death, the Present Value of the 

Qualified Preretirement Survivor Annuity shall be distributed as of the date the Participant dies. If the single 

sum death benefit payable to a Beneficiary does not exceed $5,000, on the date of the Participant’s death, 

such death benefit shall be paid in a single sum as of the date the Participant dies. This is a small amounts 

payment. Such small amounts payment shall be made to the Participant’s Beneficiary (spouse if the death 

benefit is payable to the spouse). 

A small amounts payment is in full settlement of all benefits otherwise payable. No other small amounts 

payments shall be made. 

SECTION 10.12--WORD USAGE.

The masculine gender, where used in this Plan, shall include the feminine gender and the singular 

words, where used in this Plan, shall include the plural, unless the context indicates otherwise. 

The words “in writing” and “written,” where used in this Plan, shall include any other forms, such as 

voice response or other electronic system, as permitted by any governmental agency to which the Plan is 

subject. 

SECTION 10.13--CHANGE IN SERVICE METHOD.

(a) Change of Service Method Under This Plan. If this Plan is amended to change the method of 

crediting service from the elapsed time method to the hours method for any purpose under this 

Plan, the Employee’s service shall be equal to the sum of (1), (2), and (3) below: 

 (1) The number of whole years of service credited to the Employee under the Plan as of the 

date the change is effective. 

(2) One year of service for the computation period in which the change is effective if he is 

credited with the required number of Hours of Service. For that portion of the computation 

period ending on the date of the change (for the first day of the computation period if the 

change is made on the first day of the computation period), the Employee will be credited 

with the greater of (i) his actual Hours of Service or (ii) the number of Hours of Service that 

is equivalent to the fractional part of a year of elapsed time service credited as of the date 

of the change, if any. In determining the equivalent Hours of Service, the Employee shall 

be credited with 190 Hours of Service for each month and any fractional part of a month in 

such fractional part of a year. The number of months and any fractional part of a month 

shall be determined by multiplying the fractional part of a year, expressed as a decimal, by 

12. For the remaining portion of the computation period (the period beginning on the 

Exhibit 13 Application Page 169
RESTATEMENT JANUARY 1, 2014 68 ARTICLE X (7-6466)-1

second day of the computation period and ending on the last day of the computation period 

if the change is made on the first day of the computation period), the Employee will be 

credited with his actual Hours of Service. 

 (3) The Employee’s service determined under this Plan using the hours method after the end 

of the computation period in which the change in service method was effective. 

 If this Plan is amended to change the method of crediting service from the hours method to the 

elapsed time method for any purpose under this Plan, the Employee’s service shall be equal to 

the sum of (4), (5), and (6) below: 

 (4) The number of whole years of service credited to the Employee under the Plan as of the 

beginning of the computation period in which the change in service method is effective. 

 (5) The greater of (i) the service that would be credited to the Employee for that entire 

computation period using the elapsed time method or (ii) the service credited to him under 

the Plan as of the date the change is effective. 

 (6) The Employee’s service determined under this Plan using the elapsed time method after 

the end of the applicable computation period in which the change in service method was 

effective. 

(b) Transfers Between Plans with Different Service Methods. If an Employee has been a participant 

in another plan of a participating Employer that credited service under the elapsed time method 

for any purpose that under this Plan is determined using the hours method, the Employee’s 

service shall be equal to the sum of (1), (2), and (3) below: 

 (1) The number of whole years of service credited to the Employee under the other plan as of 

the date he became an Eligible Employee under this Plan. 

(2) One year of service for the applicable computation period in which he became an Eligible 

Employee if he is credited with the required number of Hours of Service. For that portion 

of such computation period ending on the date he became an Eligible Employee (for the 

first day of such computation period if he became an Eligible Employee on the first day of 

such computation period), the Employee will be credited with the greater of (i) his actual 

Hours of Service or (ii) the number of Hours of Service that is equivalent to the fractional 

part of a year of elapsed time service credited as of the date he became an Eligible 

Employee, if any. In determining the equivalent Hours of Service, the Employee shall be 

credited with 190 Hours of Service for each month and any fractional part of a month in 

such fractional part of a year. The number of months and any fractional part of a month 

shall be determined by multiplying the fractional part of a year, expressed as a decimal, by 

12. For the remaining portion of such computation period (the period beginning on the 

second day of such computation period and ending on the last day of such computation 

period if he became an Eligible Employee on the first day of such computation period), the 

Employee will be credited with his actual Hours of Service. 

 (3) The Employee’s service determined under this Plan using the hours method after the end 

of the computation period in which he became an Eligible Employee. 

Exhibit 13 Application Page 170
RESTATEMENT JANUARY 1, 2014 69 ARTICLE X (7-6466)-1

 If an Employee has been a participant in another plan of a participating Employer that credited 

service under the hours method for any purposes that under this Plan is determined using the 

elapsed time method, the Employee’s service shall be equal to the sum of (4), (5), and (6) below: 

 (4) The number of whole years of service credited to the Employee under the other plan as of 

the beginning of the computation period under that plan in which he became an Eligible 

Employee under this Plan. 

 (5) The greater of (i) the service that would be credited to the Employee for that entire 

computation period using the elapsed time method or (ii) the service credited to him under 

the other plan as of the date he became an Eligible Employee under this Plan. 

 (6) The Employee’s service determined under this Plan using the elapsed time method after 

the end of the applicable computation period under the other plan in which he became an 

Eligible Employee. 

Any modification of service contained in this Plan shall be applicable to the service determined pursuant 

to this section. 

SECTION 10.14--MILITARY SERVICE.

Notwithstanding any provision of this Plan to the contrary, the Plan shall provide contributions, benefits, 

and service credit with respect to Qualified Military Service in accordance with Code Section 414(u). 

A Participant who dies on or after January 1, 2007 while performing Qualified Military Service is treated 

as having resumed and then terminated employment on account of death, in accordance with Code Section 

401(a)(37) and any subsequent guidance. The survivors of such Participant are entitled to any additional 

benefits (other than an Accrued Benefit relating to the period of Qualified Military Service) provided under the 

Plan on account of death of the Participant. 

Exhibit 13 Application Page 171

 

PLASTERERS LOCAL 82 

PENSION FUND 

Summary Plan Description 

(12/2014) 

Exhibit 13 Application Page 173
1 

PLAN HIGHLIGHTS

7-6466 

(CL2013) 

Plan Highlights briefly describes the plan. The rest of this booklet explains in greater detail how the 

plan works. 

The plan was started on January 1, 1962. 

The plan: 

 • Bases your right to your retirement benefit on your service.

 • May provide a death benefit for your spouse or another person you name as beneficiary if you die 

before retirement. 

 • Provides benefits before retirement if you become disabled as defined in the plan. 

 • Is funded entirely by participating employers’ contributions. 

 • Offers several different ways to receive your benefits. You choose the right way for you. 

About This Booklet

This booklet is the summary plan description. It explains how the plan currently works, when you 

qualify for benefits, and other information. 

If any part of this summary plan description (booklet) conflicts with the terms of the plan, the terms of 

the plan will be followed. The plan is much more detailed. 

The term “your earned benefit” refers to the benefit earned by you under the plan. The term “your 

earned benefit” applies to both the vested part of your earned benefit and the part of your earned 

benefit that is not vested. The term “your vested benefit” refers to the vested part of the earned benefit. 

Part 4 of this booklet explains vesting. Use of the term “your earned benefit” does not give you any 

rights to the earned benefit or any assets of the plan other than those described in this booklet. 

The terms “in writing” and “written” generally refer to paper documents. These terms may also refer to 

an electronic means of sending or receiving information that is acceptable to the plan administrator 

and is allowable by law. 

Ask the plan administrator if you have questions. Part 8 of this booklet lists the plan administrator's 

name and address. 

Exhibit 13 Application Page 174
2 

TABLE OF CONTENTS

JOINING THE PLAN ........................................................................................................ PART 1 

 • When You Join 

 • Changes in Your Participation 

YOUR EARNED BENEFIT .............................................................................................. PART 2 

 • Figuring Your Earned Benefit 

 • Law Limits 

 • Helpful Terms 

 • Who Provides Your Earned Benefit 

RETIREMENT BENEFITS ............................................................................................... PART 3 

 • At Normal Retirement Date 

 • At Early Retirement Date 

 • At Late Retirement Date 

 • Required Beginning Date 

 • Adjustments to Your Benefits 

 • Coming Back to Work After Retirement 

BENEFITS FOR INACTIVE PARTICIPANTS ................................................................... PART 4 

 • Your Vested Benefit 

 • When Your Vested Benefit Starts 

 • Before Your Vesting Percentage Is 100% 

 • Disability Benefits 

DEATH BENEFITS BEFORE RETIREMENT ................................................................... PART 5 

 • A Spouse's Benefit 

 • Single Sum Death Benefit 

 • Benefits Between Normal and Late Retirement 

HOW THE PLAN PAYS BENEFITS ................................................................................. PART 6 

 • Choosing at Retirement 

 • Choosing Pre-retirement Death Benefits 

 • Forms to Choose 

 • Tax Considerations 

IMPORTANT INFORMATION FOR YOU ......................................................................... PART 7 

 • Your Rights 

 • A Spouse's Rights 

 • The Plan Administrator 

 • Direct Rollovers 

 • Assigning Your Benefits 

 • Your Social Security Benefits 

 • Claiming Benefits Under the Plan 

 • Changing the Plan 

 • Stopping the Plan 

 • The Plan and the Pension Benefit Guaranty Corporation (PBGC)

 • Military Service 

Exhibit 13 Application Page 175
3 

FACTS ABOUT THE PLAN ............................................................................................. PART 8 

Exhibit 13 Application Page 176
4 

PART 1 JOINING THE PLAN 

When You Join 

You join the plan as an active participant on the day on which you become an eligible employee. This 

date is your entry date. 

Eligible employee means you are an employee of a participating employer who is represented for 

collective bargaining purposes by Operative Plasterers and Cement Masons International Association, 

Local Union No. 82. 

Changes in Your Participation

You become an inactive participant on: 

 • The date you are no longer an eligible employee. 

 • The end of a service period used to determine benefit service (see Part 2) in which you have 399 

or fewer hours of service. 

You stop being a participant on: 

 • The date of your death. 

 • The date you get a single sum payment in place of all other benefits if your vesting percentage is 

100% (see Part 4). 

If you become an inactive participant, you’ll also stop being a participant on the earliest date on which 

you are not entitled to a vested benefit (see Part 4). 

You rejoin the plan as an active participant when you work another hour for a participating employer 

as an eligible employee. 

Exhibit 13 Application Page 177
5 

PART 2 YOUR EARNED BENEFIT 

As you work for a participating employer, you earn your retirement benefit. This earned benefit grows 

with your service. 

Figuring Your Earned Benefit

This formula is used to figure your earned benefit: 

(1) $7.50 multiplied by your past benefit service 

 plus 

(2) 2% of the total contributions your employer made for you for each year of future benefit service 

before January 1, 1978 

 plus 

(3) 2.5% of the total contributions your employer made for you for each year of future benefit service 

on and after January 1, 1978 and before January 1, 1990 

 

 plus 

(4) 3% of the total contributions your employer made for you for each year of future benefit service on 

and after January 1, 1990 and before January 1, 2008 

 plus 

(5) 2% of the total contributions your employer made for you for each year of future benefit service on 

and after January 1, 2008 and before January 1,2009 

 plus 

(6) 1% of the total contributions your employer made for you (excluding contributions that are excluded 

from the benefit formula) for each year of future benefit service on and after January 1, 2009. 

 plus 

(7) $5.00 multiplied by your benefit service earned before December 1, 2010. 

 plus 

(8) $2.50 multiplied by your future benefit service earned before December 1, 2010. 

Your earned benefit will be increased should you die or become disabled (as defined in the plan) while 

on military duty and you could have returned to work for a participating employer at the end of your 

military service. 

Exhibit 13 Application Page 178
6 

Law Limits

The law limits the annual benefit that may be paid to you in any year to a dollar amount. The dollar 

limit, which is subject to change each year for cost of living changes, is $210,000 in 2014. The limits 

are adjusted if: 

 • You have less than 10 years of service or participation. 

 • You retire before age 62 or after age 65. 

 • The plan’s normal form of income provides a death benefit. 

Your earned benefit may not exceed this limit. Since your earned benefit is stated as a monthly benefit, 

1/12th of the applicable limit applies. 

The law requires that the plan make certain changes if it is in a critical funding status. Beginning 

August 1, 2013, the plan will not purchase an annuity or annuities for any participant or group of 

participants due to its critical funding status. 

Ask the plan administrator if you want to know more about these limits. 

Helpful Terms

Benefit service means the sum of your past and future benefit service. 

Future Benefit service means the sum of the following: 

 • One year for each service period ending on or after January 1, 1976, or your entry date (see Part 

1) in which you have 400 or more hours of service. 

 If your first service period starts on your entry date and that date is not the first day of the service 

period, the 400 hours requirement will be adjusted by multiplying 400 by the ratio of (1) the number 

of days from your entry date to the end of the service period to (2) 365. 

 The 400 hours requirement will also be adjusted during the service period in which your normal 

retirement date (see Part 3) occurs. During that service period, you will be credited with one year 

of future benefit service if you have at least one hour of service in that period. 

 • One year for each service period ending on or after January 1, 1962 and before January 1, 1976, 

in which you were an active participant in the plan and have 400 or more hours of service. 

Your benefit service before a break in service, occurring before January 1, 1985, is not counted if your 

vesting percentage was zero (see Part 4) and your consecutive breaks in service equaled or were 

more than your earlier benefit service. 

Past benefit service means either 

 • Your service before January 1, 1962, if you became an active participant in the prior plan on (1) 

January 1, 1962, or (2) the date your local union entered the prior plan, if later, equal to your years 

and complete months of service (but not more than 10 years) in jobs covered by the terms and 

conditions of a collective bargaining agreement with the union; or 

 • Your period of membership in a participating local union before (1) January 1, 1962, or (2) the date 

your local union entered the prior plan, if later. 

Exhibit 13 Application Page 179
7 

Your past benefit service will not be more than your total years of future benefit service. 

Break in service means you have 399 or fewer hours of service in a service period. 

Hour of service means each hour of paid working time. In addition, up to 501 hours will be counted 

during any one period of paid non-working time, such as paid vacation. 

Service period means a one-year period ending on December 31. 

Union means Operative Plasterers and Cement Masons International Association, Local Union No. 

82. 

Who Provides Your Earned Benefit

Your earned benefit is provided entirely by participating employers’ contributions to the plan. 

Participating employers’ contributions are collectively bargained. 

The contributions are invested and accumulate to provide benefits under the plan. The plan funds are 

for the exclusive benefit of participants and their beneficiaries. 

Exhibit 13 Application Page 180
8 

PART 3 RETIREMENT BENEFITS 

The plan is designed to provide a retirement income for you. The amount you receive each month 

when you retire is based on your earned benefit. 

At Normal Retirement Date

Unless you choose otherwise, your retirement benefit begins on your normal retirement date if you 

have an earned benefit (see Part 2) and you stop working for a participating employer. Even if you 

continue to work for a participating employer, you may choose to begin your retirement benefit on your 

normal retirement date. 

Normal retirement date means the earliest first day of the month on or after the date you reach your 

normal retirement age. 

Your normal retirement age is the older of: 

 • Age 62. 

 • Your age on the date two years after the date you entered the plan. 

At Early Retirement Date

If you choose to retire early, your earned benefit will be less than the amount you could have earned 

by working until normal retirement date. 

f 

You receive a percentage of your earned benefit because payments begin at a younger age and are 

expected to continue longer. The percentage is based on your tier eligibility and your age on your 

early retirement date as shown in the following tables: 

 Your Age on Your Approximate 

 Early Retirement Date Percentage of 

 Under Tier 1 Eligibility Earned Benefit 

62 100 

61 97 

60 94 

59 91 

58 88 

57 85 

56 77 

55 70 

 

 Your Age on Your Approximate 

 Early Retirement Date Percentage of 

 Under Tier 3 Eligibility Earned Benefit 

62 100 

61 91 

60 82 

59 75 

58 68 

57 62 

Exhibit 13 Application Page 181
9 

The percentages in the tables above are adjusted for parts of a year. 

Early retirement date means the first day of any month you choose that is on or after the later of the 

date you stop working or the date you reach early retirement age. 

Your early retirement age is your age on the date you first meet the requirements of either (a), (b), or 

(c) below: 

(a) For Tier 1 Eligibility 

 • The date you reach age 57 and complete 25 years of benefit service; or 

 • The date you reach age 57, complete 15 years of benefit service, and satisfy the recency test 

(b) For Tier 2 Eligibility 

 • Tier 2 eligibility was eliminated for retirements beginning on or after August 1, 2013. 

 

(c) For Tier 3 Eligibility 

 • The date you reach age 57 and do not meet the requirements for either Tier 1 or Tier 2 eligibility. 

Recency test means the service requirement you must satisfy to be eligible for an early retirement 

date. The recency test is satisfied if you complete at least 400 hours of service in the calendar year of 

your early retirement date or the calendar year prior to your early retirement date. The recency test is 

also satisfied if you complete 600 hours of service in two of the last three calendar years before the 

year of your early retirement date. 

At Late Retirement Date

You may choose to start benefits on your late retirement date. When you retire late, your earned 

benefit as of your normal retirement date is increased by a percentage because payments begin at an 

older age and are expected to continue for a shorter time. The percentage is based on the number of 

years you retire late and is shown in the following table: 

 Percentage 

 Years You Increase to Your 

 Retire Late Earned Benefit 

 1 6 

 2 12 

 3 19 

 4 26 

 5 34 

 6 42 

 7 50 

 8 59 

 9 69 

 10 79 

The percentage is adjusted for parts of a year. The plan administrator can give you the percentages 

for other years. 

Your income won't be less than your earned benefit as of your late retirement date. 

Exhibit 13 Application Page 182
10

If you retire after age 70 1/2 your benefit will be increased to take into account the period between the 

April 1 following the calendar year in which you reach age 70 1/2 and the date your retirement benefits 

begin. 

Late retirement date means, if you continue working for a participating employer after your normal 

retirement date, the earliest first day of the month on or after the date you stop working for a 

participating employer. 

You may choose to have your benefits start on the first day of any month after your normal retirement 

date and before you stop working. If you do, that date becomes your late retirement date. 

It's possible to have your benefits begin after your late retirement date. If you think you would like to 

delay your benefits, talk to the plan administrator before your late retirement date. 

Required Beginning Date 

Under the law you must begin receiving benefits by your required beginning date. Your required 

beginning date is the April 1 following the later of the calendar year in which you reach age 70 1/2 or 

the calendar year in which you stop working for a participating employer. However, if you are a 5% 

owner, your benefits must begin by the April 1 following the calendar year in which you reach age 

70 1/2. 

Adjustments to Your Benefits

The amount you receive will be adjusted if your retirement benefit is not paid under the normal form of 

income. 

Normal form of income means a form which pays you monthly income for life and pays no benefits 

after your death. 

Part 6 explains the other forms you may choose. 

Ask the plan administrator if you want to know more about these adjustments. 

Coming Back to Work After Retirement 

Your monthly payments will be suspended (stopped) if you are reemployed and have hours of service 

in the same industry, trade, craft, or geographic area covered by the Plan, except in the case of covered 

employment during a manpower shortage. Payments will start again after the month in which you have 

no hours of service in such industry, trade, craft, or geographic area. Your payments will be in the 

same form and amount as before. 

You must notify the plan administrator if you become employed in such industry, trade, craft, or 

geographic area. The plan administrator may request access to reasonable information for the purpose 

of verifying employment. The plan administrator, when and as often as may reasonably be required, 

may request that you either certify that you are unemployed or provide factual information sufficient to 

establish that any employment would not result in your payments being suspended. If you don’t comply 

with such request, your payments may be stopped or delayed, as described below. 

If the plan administrator becomes aware that you are employed at a construction site in employment 

which would result in your payments being suspended and you have not complied with the reporting 

requirements with regard to that employment, the plan administrator may, unless it is unreasonable 

under the circumstances to do so, assume that you engaged in such employment for the same 

Exhibit 13 Application Page 183
11

employer in work at that site for so long before the work in question as that same employer performed 

work at that construction site, unless you can prove otherwise.

If you die while payments are stopped, or after payments start again, any death benefit will be 

determined as if payments had not been stopped. 

You must be notified before payments can stop. If you are not notified in the first month that payments 

are to be stopped, payments for the months before the notification will not be stopped. When payments 

start again, monthly payments will be reduced by the amount of the payments for those months. After 

the first monthly payment, the reduction cannot exceed 25%. 

Payments must start within three months after you have no hours of service in such industry, trade, 

craft, or geographic area, if you have followed the employment verification requirements described 

above. The first payment will include payment for any prior month in which you have no hours of 

service, but may be reduced as provided above. 

You may ask for a review from the plan administrator if you think your benefits should not stop. If 

you’re considering coming back to work after retiring, you may ask the plan administrator if doing so 

would cause your payments to stop. You should follow the steps outlined for making a claim for 

benefits (see Part 7). 

The plan administrator will treat these requests the same as a claim for benefits. 

If you again become an active participant it is possible that you may earn additional benefits. Any 

additional benefit will be based on the increase, if any, in your earned benefit since your earlier 

retirement date. 

If these provisions were added or changed on or after June 7, 2004, the added or changed provisions 

apply to employees who began to participate in the plan on or after the date of the addition or change. 

If the provisions were changed on or after such date, the provisions that apply to employees who began 

to participate in the plan before such date shall be the provisions that were in effect before such 

change. 

Exhibit 13 Application Page 184
12

PART 4 BENEFITS FOR INACTIVE PARTICIPANTS 

Your Vested Benefit

Each year as you work for a participating employer, you earn a right to a benefit if you stop working for 

a participating employer before retirement. This benefit is called your vested benefit. 

Your vested benefit is equal to: 

(1) your earned benefit 

 multiplied by 

(2) your vesting percentage 

If you become an inactive participant because you are no longer an eligible employee (see Part 1), but 

you are still working for a participating employer, your service after you become an inactive participant 

is used to figure your vesting percentage but not your earned benefit. 

Your vesting percentage will be 100% if you are working for a participating employer: 

 • On or after the date you reach normal retirement age (see Part 3). 

 • On or after the date you reach early retirement age (see Part 3) if you were an active participant 

before January 1, 1985. 

Before that date, the following schedule determines your vesting percentage: 

 Years of Vesting 

 Vesting Service Percentage 

 Less than 5 0 

 5 or more 100 

Vesting service means the sum of your years of service. You have one year of service for each 

service period in which you have 400 or more hours of service. 

A service period is a one-year period ending on December 31. An hour of service is each hour of paid 

working time. In addition, it includes up to 501 hours during any one period of paid non-working time, 

such as paid vacation. 

Break in service means you have 399 or fewer hours of service in a service period. 

Federal law delays a break in service for your pregnancy, birth of your child, placement of a child with 

you by reason of your adoption of such child, or your caring for such child following such birth or 

placement. 

When Your Vested Benefit Starts

You will start receiving your vested benefit on your retirement date. Part 3 explains when you may 

retire and how your vested benefit is adjusted if you retire early or late. 

The amount you receive will be adjusted if your retirement benefit is not paid under the normal form of 

income. 

Exhibit 13 Application Page 185
13

Normal form of income means a form which pays you monthly income for life and pays no benefits 

after your death. 

Part 6 explains other forms of benefit you may choose when you retire and tax considerations. If the 

value of your vested benefit is $5,000 or less, such value will be paid to you in a single sum when you 

stop working for a participating employer. There is no choice to make. Federal law requires the plan 

to automatically roll the value of your vested benefit to an IRA in a direct rollover (see Part 7) if: 

 • such value is more than $1,000 

 • you have not reached normal retirement age (see Part 3) 

 • you do not elect to have such value paid to you in a single sum or rolled to another retirement plan 

or an IRA of your choice in a direct rollover 

For more information regarding the designated IRA for automatic rollovers see Part 8. 

You need to tell the plan administrator your current address when you wish payments to begin. Federal 

law may require you to have your spouse's consent. See A Spouse’s Rights in Part 7. 

Before Your Vesting Percentage Is 100%

You forfeit (lose the right to) your earned benefit if you stop working for a participating employer when 

your vesting percentage is zero. This forfeited amount will be restored if you come back to work as an 

eligible employee (see Part 1) before the end of the first period of five consecutive one-year breaks in 

service beginning after you stop working for a participating employer. 

Disability Benefits

You receive a monthly disability benefit if you meet all of the following: 

 • You are totally disabled as defined in the plan. 

 • You have at least 15 years of vesting service (see Part 3) when you become disabled. 

The monthly disability payments equal 50% of your earned benefit as of the date you became totally 

and permanently disabled as defined in the plan. 

Payments continue until the earliest of 

• your normal retirement date, 

• the date of your death, 

• the day following the date you receive your last disability benefit payment from Social Security (or 

the date you receive notification from the Social Security Administration that you are no longer 

eligible for a disability benefit, if earlier). 

If you are an active participant on the day before you become totally disabled, the following applies to 

you: 

• At your normal retirement date, retirement payments will begin. The amount of your monthly 

retirement income depends on the form you choose (see Part 6). If you choose the normal form of 

income, your monthly payments won’t change after retirement. 

Exhibit 13 Application Page 186
14

• If you recover before your normal retirement date and come back to work, your payments stop and 

you may become an active participant again as provided in Part 1. 

• If you recover before our normal retirement date and don’t come back to work, you are treated as 

though you had stopped working for us on the date you became totally disabled. Your earned benefit 

will be determined as of the date you became totally disabled. 

If you are an inactive participant on the day before you become totally disabled, the following applies 

to you: 

• At normal retirement date, retirement payments begin. The amount of your monthly retirement 

income depends on the form you choose (see Part 6). If you choose the normal form of income, your 

monthly payments won’t change after retirement. 

• If you recover before your normal retirement date, payments stop. Your retirement benefit will be 

redetermined under the When Your Vested Benefit Starts section of this Part 4. 

Exhibit 13 Application Page 187
15

PART 5 DEATH BENEFITS BEFORE RETIREMENT 

The primary purpose of the plan is to provide income for you during your retirement years. However, 

if you die before you retire, a death benefit may be payable to your beneficiary or spouse. 

A Spouse's Benefit

A death benefit under this section is paid to your spouse if these requirements are met: 

 • You die before retirement benefits start and before your normal retirement date. 

 • You were married for the full year before your death. 

 • Your vesting percentage is greater than zero (see Part 4). 

The death benefit equals the survivor's benefit under a 50% survivor form. See Part 6 for a description 

of this form of benefit. The benefit is payable to your spouse as of the earliest date you could have 

retired on or after the date of your death. This will be your normal retirement date if you die before 

your normal retirement date and would not have reached early retirement age (see Part 3) before that 

date. If you were still working for a participating employer on the date of your death, the earliest date 

you could have retired will be determined as if you had stopped working for such employer on the date 

of your death and survived to retire. This date will be the date of your death if you die on or after your 

normal retirement date or you had reached early retirement age on the date of your death. 

The amount of the benefit is based on your vested benefit when you die. If you are not working for a 

participating employer then, it is based on your vested benefit when you stopped working for such 

employer. If the earliest date you could have retired is before your normal retirement date, your vested 

benefit is adjusted for early retirement as explained in Part 3. If you die after your normal retirement 

date, your vested benefit is adjusted for late retirement as explained in Part 3. Your vested benefit is 

also adjusted for the 50% survivor form. One-half of this reduced amount is payable to your spouse 

monthly for life. 

If the value of the spouse's death benefit is $5,000 or less, such value will be paid to your spouse in a 

single sum in place of the monthly income. 

Your spouse may choose to begin benefits on a later date. If your spouse chooses to begin benefits 

on a later date, the survivor’s benefit will be actuarially increased. Benefits must begin by the date you 

would have been age 70 1/2. 

Instead of the benefit described above, your spouse may choose to receive a monthly death benefit 

equal to the amount of your earned benefit on the date of your death. The payments will end after 60 

monthly payments have been made. 

Exhibit 13 Application Page 188
16

Single Sum Death Benefit 

A single sum death benefit is payable to your beneficiary if you die before your normal retirement date 

and if the following requirements are met: 

 • You completed at least five years of benefit service on or before the date of your death. 

 • You were not married for the full year before your death. 

 • If you are an inactive participant, your death occurs within 12 months of the last day you were an 

active participant in the plan. 

The single sum death benefit will equal the total contributions your employer made for you up to a 

maximum of $15,000. 

However, this death benefit may not be paid as a single sum during any period the plan is in critical 

funding status. If the plan is in critical funding status, the single sum will be paid as a monthly annuity 

to your beneficiary instead of the single sum. 

Benefits Between Normal and Late Retirement

If you die after your normal retirement date and before retirement benefits begin, death benefits are 

paid in this way: 

 • If you are married for the full year before your death, death benefits are the same as if you had 

died before your normal retirement date. 

 • If you are not married for the full year before your death, a death benefit may be payable depending 

on the optional form of retirement payments you chose before your death. If you chose a form 

with a death benefit, your beneficiary or survivor will receive that benefit as if you had retired on 

the date of your death. 

Federal law limits how death benefits may be paid. The plan administrator can tell you what forms you 

may choose. You should choose before your normal retirement date to be sure of the death benefit of 

your choice. 

If you have been married at least one year, you and your spouse may choose to have death benefits 

paid as if you had not been married at least one year. If you make this choice, a death benefit may be 

payable depending on the optional form of retirement payments you choose before your death as 

provided above. You will get a complete explanation of this choice in plenty of time to make your 

decision. If you ask for more information, you will get it within 30 days. See A Spouse’s Rights in 

Part 7. 

Exhibit 13 Application Page 189
17

PART 6 HOW THE PLAN PAYS BENEFITS 

You make an important choice when you decide how to receive your retirement benefit. Things to 

consider include the money you will need every month, any death benefits you want to provide, and 

your tax situation. 

If the value of your retirement benefit is more than $5,000, you may choose to have your retirement 

benefit paid under any of the optional forms available under the plan. The plan administrator or your 

tax advisor can help you make your choice. 

The amount of the payments will depend on the amount of your retirement benefit, your age, and the 

optional form chosen. If the option provides a monthly income for the life of someone who survives 

you, the amount of the payments will also depend on the age of your survivor. 

If the value of your retirement benefit is $5,000 or less, such value will be paid to you in a single sum. 

There is no choice to be made. Federal law requires the plan to automatically roll the value of your 

retirement benefit to an IRA in a direct rollover (see Part 7) if: 

 • such value is more than $1,000 

 • you have not reached normal retirement age (see Part 3) 

 • you do not elect to have such value paid to you in a single sum or rolled to another retirement plan 

or an IRA of your choice in a direct rollover 

For more information regarding the designated IRA for automatic rollovers see Part 8. 

Choosing at Retirement

If the value of your retirement benefit is more than $5,000, you may choose from the forms of benefit 

described in Forms to Choose below. Your choice must be made within 180 days of the date benefits 

begin. Federal rules may limit the forms available to you. You may need your spouse’s consent to 

choose a form of benefit. See A Spouse’s Rights in Part 7. You may change or cancel your choice at 

any time before benefits start. 

If you don't choose a form or your spouse revokes consent (if consent is needed), your retirement 

benefits are paid as follows: 

 • If you are married, retirement benefits are paid to you monthly for life. After your death, 50% of 

your monthly income is paid to your spouse for as long as your spouse lives. 

 • If you are single, retirement benefits are paid to you monthly for life. No benefits are payable after 

your death. 

Choosing Pre-retirement Death Benefits

You may name your beneficiary for any single sum death benefit. You may also choose to have the 

single sum benefit paid in another form. You may change or cancel a choice at any time. 

If you name a beneficiary but do not choose a form of payment, your beneficiary may choose the form. 

Exhibit 13 Application Page 190
18

Your spouse may choose to have the spouse's benefit described in Part 5 paid in another form. If the 

value of the spouse's benefit is $5,000 or less, such value will be paid to your spouse in a single sum. 

There is no choice to be made. 

The optional forms of death benefit are any of the annuity options that are available to you at retirement, 

other than a monthly income that continues for the life of a survivor upon death. Because of federal 

rules regarding when death benefits must begin and how death benefits can be paid, your spouse or 

beneficiary should contact the plan administrator to determine what options are available and when 

elections must be made. 

Any choice of the form of payment by your spouse or beneficiary must be made in writing before 

benefits begin. 

Forms to Choose 

The plan offers the following optional forms of benefit: 

Annuity Options 

 • A monthly income to you for life. No benefits are payable after your death. 

 • A monthly income to you for life. If you die before the end of a certain number of years (you may 

choose 5, 10, or 15 years), payments continue to your beneficiary until that period ends. 

 • A monthly income to you for life. You choose a percentage (50%, 66 2/3%, 75%, or 100%) of 

your monthly income to continue for the lifetime of a survivor you name. 

Tax Considerations

Benefits you receive are normally subject to income taxes. You may be able to postpone or reduce 

the taxes that would otherwise be due. In addition, benefits you receive before age 59 1/2 may be 

subject to a 10% penalty tax. 

Each person's tax situation differs. Your financial advisor can help you decide the best way for you to 

receive benefits. 

Exhibit 13 Application Page 191
19

PART 7 IMPORTANT INFORMATION FOR YOU 

Your Rights

As a participant, you are entitled to certain rights and protections under the Employee Retirement 

Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: 

 • Receive Information About The Plan and Benefits 

 Examine, without charge, at the plan administrator’s office and at other specified locations, such 

as worksites and union halls, all documents governing the plan, including insurance contracts and 

collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed 

by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the 

Employee Benefits Security Administration. 

 Obtain, upon written request to the plan administrator, copies of all documents governing the plan, 

including insurance contracts and collective bargaining agreements, and copies of the latest 

annual report (Form 5500 Series) and updated summary plan description. The administrator may 

make a reasonable charge for the copies. 

 Receive a summary of the plan’s annual financial report. The plan administrator is required by 

law to furnish each participant with a copy of this summary annual report. 

 Obtain a statement telling you whether you have a right to receive a pension at normal retirement 

age (see Part 3) and if so, what your benefits would be at normal retirement age if you stop working 

under the plan now. If you do not have a right to a pension, the statement will tell you how many 

more years you have to work to get a right to a pension. If you have a right to a pension, this 

statement will be provided to you at least once every three years or you can request it in writing 

once every twelve months. The plan must provide the statement free of charge. 

 • Prudent Actions by Plan Fiduciaries 

 In addition to creating rights for plan participants ERISA imposes duties upon the people who are 

responsible for the operation of the employee benefit plan. The people who operate the plan, 

called “fiduciaries” of the plan, have a duty to do so prudently and in the interest of you and other 

plan participants and beneficiaries. No one, including your employer, your union, or any other 

person, may fire you or otherwise discriminate against you in any way to prevent you from 

obtaining a pension benefit or exercising your rights under ERISA. 

 • Enforce Your Rights 

If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to 

know why this was done, to obtain copies of documents relating to the decision without charge, 

and to appeal any denial, all within certain time schedules. 

 Under ERISA, there are steps you can take to enforce the above rights. For instance, if you 

request a copy of plan documents or the latest annual report from the plan and do not receive 

them within 30 days, you may file suit in a federal court. In such a case, the court may require 

the plan administrator to provide the materials and pay you up to $110 a day until you receive the 

materials, unless the materials were not sent because of reasons beyond the control of the 

administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you 

may file suit in a state or federal court. In addition, if you disagree with the plan’s decision or lack 

thereof concerning the qualified status of a domestic relations order, you may file suit in federal 

Exhibit 13 Application Page 192
20

court. If it should happen that plan fiduciaries misuse the plan’s money, or if you are discriminated 

against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or 

you may file suit in a federal court. The court will decide who should pay court costs and legal 

fees. If you are successful the court may order the person you have sued to pay these costs and 

fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your 

claim is frivolous. 

 • Assistance With Your Questions 

 If you have any questions about the plan, you should contact the plan administrator. If you have 

any questions about this statement or about your rights under ERISA, or if you need assistance 

in obtaining documents from the plan administrator, contact the nearest office of the Employee 

Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or 

the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, 

U.S. Department of Labor, 200 Constitution Avenue N.W., Washington D.C. 20210. You may 

also obtain certain publications about your rights and responsibilities under ERISA by calling the 

publications hotline of the Employee Benefits Security Administration. 

A Spouse's Rights

Other parts of this booklet refer to a spouse's rights. Federal law gives these rights to a spouse for his 

or her protection. 

Benefit Payments 

You must have your spouse’s written consent to start benefits before the date you reach normal 

retirement age (see Part 3). No consent is needed if your benefits are to be paid to you monthly for 

life with 50% of your monthly income paid to your spouse after your death. 

Your spouse must consent in writing to any form of benefit that does not pay a monthly income to you 

for life with 50% of your monthly income paid to your spouse after your death. Your spouse has the 

right to limit consent to a specific optional form of benefit or to limit consent to a specific beneficiary 

for any form which pays a death benefit. Your spouse can waive one or both of these rights. 

Your spouse may revoke consent at any time before benefits begin. A spouse’s consent is not valid 

for a former or future spouse of yours. 

Death Benefits 

You, with your spouse's consent, may choose not to have the spouse's benefit in Part 5 paid if you die 

after your normal retirement date and before retirement benefits begin. If you make this choice, the 

death benefit payable will depend on the optional form you choose (see Part 5). 

Your spouse may also consent to let you make future changes without his or her consent. If not, you 

will need a new consent to make a new choice. You do not need your spouse’s consent to cancel a 

choice. 

Your spouse may revoke consent at any time before your death. A spouse's consent is not valid for a 

former or a future spouse of yours. 

Exhibit 13 Application Page 193
21

The Plan Administrator

The plan administrator has the full power to decide what the plan provisions mean; to answer all 

questions about the plan, including those about eligibility and benefits; and to supervise the 

administration of the plan. The plan administrator's decisions are final. 

Direct Rollovers

Certain benefits that are payable to you may be paid directly to another retirement plan or IRA. The 

plan administrator will give you more specific information about this option when it applies. 

Assigning Your Benefits

Benefits under the plan cannot be assigned, transferred, or pledged to someone else. The plan does 

make the following exceptions: 

 • Qualified domestic relations orders such as alimony payments or marital property rights to a 

spouse or former spouse. 

 • Any offset to your benefit per a judgment, order, decree, or settlement agreement because of a 

conviction of a crime against the plan or a violation of ERISA.

The plan administrator will tell you if either of these exceptions applies to you. 

Your Social Security Benefits

Your benefits from this plan are in addition to your benefits from Social Security. You should make 

your application for Social Security (and Medicare) benefits 3 months before you wish Social Security 

payments to begin. 

Claiming Benefits Under the Plan

Apply for benefits to the plan administrator. You will need to complete all necessary forms and supply 

needed information, such as the address where you will get your checks. 

Your claim will be reviewed and a decision made within 90 days. In some cases the decision may be 

delayed for an additional 90 days. If so, you will be notified in writing before the end of the initial 90-

day period. The notice will include the reason for the delay and the date when the decision is expected 

to be made. 

If you make a claim and all or part of it is refused, you will be notified in writing. You will be told: 

 • the specific reason or reasons why your claim was refused, 

 • references to specific provisions of the plan governing the decision, 

 • what additional information is needed, if any, and why it is needed, and 

 • what steps you should take to have your claim reviewed, including time limits on requesting a 

review, and that you have a right to sue if upon review your claim is refused. 

You have 60 days after you receive written notice your claim is refused to make a written appeal to 

the plan administrator. If you appeal, you may also submit written comments, documents, records, 

and other information relating to the claim. You may request free of charge, access to, and copies of, 

all documents, records, and other information on which the determination was based. The plan 

Exhibit 13 Application Page 194
22

administrator will review the claim taking into account all comments, documents, records, and other 

information submitted by you relating to the claim, without regard to whether such information was 

submitted or considered in the initial benefit determination. 

A decision will be made on your appeal within 60 days. In some cases the decision may be delayed 

for an additional 60 days. If so, you will be notified in writing before the end of the initial 60-day period. 

The notice will include the reason for the delay and the date when the decision will be made. 

If you make an appeal and all or part of your claim is refused, you will be notified in writing. You will 

be told: 

 • the specific reason or reasons why your claim was refused, 

 • references to specific provisions of the plan governing the decision, 

 • you may request and receive free copies of all documents, records, and other information on which 

the determination was based, and 

 • you have a right to sue. 

Any civil action must be filed no later than one year after the date listed on the latest notice you 

received that your claim was refused. 

You may authorize a representative to act on your behalf with respect to a benefit claim or an appeal. 

You will have to complete the necessary forms to designate an authorized representative to act on 

your behalf. In that case, all information and notices will be given to the representative unless you 

direct otherwise. 

The plan administrator will perform periodic examinations, reviews, or audits of benefit claims to 

determine whether determinations have been made in accordance with plan documents and plan 

provisions have been consistently applied. 

In the case of a claim for disability benefits, the above provisions will be modified as follows: 

Your disability claim will be reviewed and a decision made within 45 days. In some cases the decision 

may be delayed for an additional 30 days if the plan administrator is unable to make a determination 

due to matters beyond its control. If so, you will be notified in writing before the end of the initial 45-

day period. The notice will include the reason for the delay and the date when the decision is expected 

to be made. In some cases the decision may be delayed for an additional 30 days if the plan 

administrator is unable to make a determination due to matters beyond its control. If so, you will be 

notified in writing before the end of the first 30-day period. The notice will include the reason for the 

delay and the date when the decision is expected to be made. In the event of any delay, the notice of 

the delay will explain the standards on which entitlement to the disability benefit is based, the 

unresolved issues that prevent a decision on the disability claim, and the additional information needed 

to resolve those issues. If a decision is delayed, you will be given at least 45 days to provide any 

additional information. 

In the event the delay is due to your failure to submit needed information, the 30 days will begin when 

you respond to the request for additional information. 

If you make a disability claim and all or part of it is refused, you will be notified in writing. You will be 

told: 

 • the specific reason or reasons why your disability claim was refused, 

 • references to specific provisions of the plan governing the decision, 

Exhibit 13 Application Page 195
23

 • what additional information is needed, if any, and why it is needed, 

 • what steps you should take to have your disability claim reviewed, including time limits on 

requesting a review, and that you have a right to sue if upon review your disability claim is refused, 

 • the internal rule, guideline, protocol, or other similar criterion, if any, used to make the 

determination (or state that it was used and a copy will be provided free of charge upon request), 

and 

 • an explanation of any scientific or clinical judgment for the determination if benefit determination 

is based on medical necessity or experimental treatment or similar exclusion or limit (or state that 

the determination was based on such an exclusion or limit and the explanation will be provided 

free of charge). 

You have 180 days after you receive written notice your disability claim is refused to make a written 

appeal to the plan administrator. If you appeal, you may also submit written comments, documents, 

records, and other information relating to the disability claim. You may request free of charge, access 

to, and copies of, all documents, records, and other information on which the determination was based. 

The plan administrator will review the disability claim taking into account all comments, documents, 

records, and other information submitted by you relating to the disability claim, without regard to 

whether such information was submitted or considered in the initial benefit determination. 

The review will not afford deference to the initial adverse benefit determination and will be conducted 

by an appropriate named fiduciary who is neither the individual who made the adverse benefit 

determination that is being appealed, nor the subordinate of such individual. If the adverse benefit 

determination is based in whole or in part on a medical judgment, the appropriate named fiduciary will 

consult with a health care professional who has appropriate training and experience in the field of 

medicine involved in the medical judgment. Such health care professional will be an individual who is 

neither the individual who was consulted in connection with the adverse benefit determination that is 

being appealed, nor the subordinate of such individual. You will be provided with the identity of medical 

or vocational experts whose advice was obtained on behalf of the plan in connection with the adverse 

benefit determination, without regard to whether the advice was relied on. 

A decision will be made on your appeal within 45 days. In some cases the decision may be delayed 

for an additional 45 days. If so, you will be notified in writing before the end of the initial 45-day period. 

The notice will include the reason for the delay and the date when the decision will be made. 

In the event the delay is due to your failure to submit needed information, the 45 days will begin when 

you respond to the request for additional information. 

If you make an appeal and all or part of your disability claim is refused, you will be notified in writing. 

You will be told: 

 • the specific reason or reasons why your disability claim was refused, 

 • references to specific provisions of the plan governing the decision, 

 • you may request and receive free copies of all documents, records, and other information on which 

the determination was based, 

 • you have a right to sue, 

• the internal rule, guideline, protocol, or other similar criterion, if any, used to make the 

determination (or state that it was used and a copy will be provided free of charge upon request), 

and 

Exhibit 13 Application Page 196
24

 • an explanation of any scientific or clinical judgment for the determination if benefit determination 

is based on medical necessity or experimental treatment or similar exclusion or limit (or state that 

the determination was based on such an exclusion or limit and the explanation will be provided 

free of charge). 

Any civil action must be filed no later than one year after the date listed on the latest notice you 

received that your disability claim was refused. 

Your notice will also include the following statement: “You and the plan may have other voluntary 

alternative dispute resolution options, such as mediation. One way to find out what may be available 

is to contact your local U.S. Department of Labor Office and your State insurance regulatory agency.” 

Changing the Plan

The plan can be changed at any time. You will be notified of any changes that affect your benefits. 

Benefits you have earned as of the date the plan is changed may not be reduced except as required 

by law. If the plan is changed, the plan administrator can tell you which benefits and forms of payment 

are preserved for you. 

An earlier version of the plan may continue to apply in certain situations. For example, participants 

who stop working for a participating employer have their eligibility for benefits determined under the 

version in effect when they stopped working. 

Stopping the Plan

The plan may be terminated by amendment or by withdrawal of every employer. The plan may also 

be terminated through proceedings instituted by the Pension Benefit Guaranty Corporation (PBGC). If 

you are affected by termination of the plan, you will be fully vested in your earned benefit. The 

provisions of the Multiemployer Pension Plan Amendments Act of 1980 as amended by the Deficit 

Reduction Act of 1984 might require your employer to contribute additional amounts in order to fund 

these benefits. 

The Plan and the Pension Benefit Guaranty Corporation (PBGC)

Your pension benefits under this multiemployer plan are insured by the Pension Benefit Guaranty 

Corporation (PBGC), a federal insurance agency. A multiemployer plan is a collectively bargained 

pension arrangement involving two or more unrelated employers, usually in a common industry. 

Under the multiemployer plan program, the PBGC provides financial assistance through loans to plans 

that are insolvent. A multiemployer plan is considered insolvent if the plan is unable to pay benefits 

(at least equal to the PBGC’s guaranteed benefit limit) when due. 

The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer program, the 

PBGC guarantee equals a participant’s years of service multiplied by (1) 100% of the first $11 of 

monthly benefit accrual rate and (2) 75% of the next $33. The PBGC’s maximum guarantee limit is 

$44 per month times a participant’s years of service. For example the maximum annual guarantee for 

a retiree with 30 years of service would be $12,870. 

The PBGC guarantee generally covers: (1) normal and early retirement benefits; (2) disability benefits 

if you become disabled before the plan becomes insolvent; and (3) certain benefits for your survivors. 

The PBGC guarantee generally does not cover: (1) benefits greater than the maximum guaranteed 

amount set by law; (2) benefit increases and new benefits based on plan provisions that have been in 

Exhibit 13 Application Page 197
25

place for fewer than five years at the earlier of: (i) the date the plan terminates or (ii) the time the plan 

becomes insolvent; (3) benefits that are not vested because you have not worked long enough; (4) 

benefits for which you have not met all of the requirements at the time the plan becomes insolvent; 

and (5) non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation 

pay, and severance pay. 

For more information about the PBGC and the benefits it guarantees, ask the plan administrator or 

contact the PBGC’s Technical Assistance Division, 1200 K Street, N.W., Suite 930, Washington, D.C. 

20005-4026 or call 202-326-4000 (not a toll-free number). TTY/TDD users may call the federal relay 

service toll-free at 1-800-877-8339 and ask to be connected to 1-800-400-7242. Additional information 

about the PBGC’s pension insurance program is available through the PBGC’s website on the Internet 

at http://www.pbgc.gov. 

Military Service 

You may be entitled to certain benefits under the Uniformed Services Employment and Reemployment 

Rights Act of 1994. The benefits you are entitled to will be determined at the time you return to work 

for a participating employer based on your period of military service and whether or not you returned 

to work during the period of time in which you have reemployment rights. 

You may be entitled to additional benefits or vesting service under the Heroes Earnings Assistance 

and Relief Tax Act of 2008 if you die during a period of qualified military service. Your survivor may 

also be entitled to certain benefits if you die during your period of military service and you could have 

returned to work a participating employer during the period of time in which you had reemployment 

rights. 

Exhibit 13 Application Page 198
26

PART 8 FACTS ABOUT THE PLAN 

The terms of the plan do not guarantee your employment with us.

Plan Sponsor and Identification Number

Board of Trustees of Plasterers Local 82 Pension Fund 

12812 NE Marx Street 

Portland, OR 97230-1067 

EIN: 93-6075453 

If you ask for it in writing, you'll get information as to whether a particular employer or employee 

organization is a sponsor of this plan, and if the employer or employee organization is a plan sponsor, 

the sponsor's address. 

Plan Name and Plan Number

Plasterers Local 82 Pension Fund 

PN: 001 

Type of Plan

Defined Benefit 

Plan Administrator

Board of Trustees of Plasterers Local 82 Pension Fund 

12812 NE Marx Street 

Portland, OR 97230-1067 

Telephone: (503) 232-3257 

Type of Administration

Trustee 

Plan Year

January 1 through December 31 

Designated IRA for Automatic Rollovers

The IRA designated for automatic rollovers is an interest-bearing savings account. Fees and expenses 

will be paid by you. For more information about the designated IRA and related fees, contact: 

Exhibit 13 Application Page 199
27

Calvin J. McKinnis, II 

Administrator 

Plasterers local 82 Pension Fund 

12812 NE Marx Street 

Portland, OR 97230-1067 

Telephone: (503) 232-3257 

Funding Medium(s)

Participating employers make contributions to the plan. Those contributions are held under a trust 

fund (see Trustee information below) for purposes of providing benefits for participants of the plan. 

Trustee(s) of the Plan

Employer Trustees Union Trustees 

Rick VanCleave 

VanCleave & Cobrain 

16135 SW Railroad Street 

Sherwood OR 97140 

Calvin McKinnis II 

Plasterers Local 82 

12812 NE Marx Street 

Portland OR 97230 

 Kent Sickles 

Plasterers Local 82 

12812 NE Marx Street 

Portland OR 97230 

 Ray Rask 

Plasterers Local 82 

12812 NE Marx Street 

Portland OR 97230 

Agent for Legal Process of the Plan

Trustees of Plasterers Local 82 Pension Fund 

12812 NE Marx Street 

Portland, OR 97230-1067 

Service of legal process may also be made on the plan administrator or a plan trustee. 

Legal action may not be brought more than two years following the date such cause of action or 

proceeding arose. 

Additional Information 

For more information about the Principal Financial Group® or the plan, you may access The Principal® 

website at www.principal.com or call the interactive voice response system at 1-800-547-7754. 

Principal Life Insurance Company is a member company of the Principal Financial Group®: 

This plan is maintained pursuant to a collective bargaining agreement. A copy may be obtained upon 

written request to the plan administrator and is available for examination. 

Exhibit 13 Application Page 200
7-6466 

Exhibit 13 Application Page 201











1 

j:\ppp\letters\160701.docx 

PLASTERERS LOCAL 82 PENSION FUND 

Actuarial Certification Under IRC Section 432(b) 

for the Plan Year Beginning January 1, 2016

Plan Identification 

Plan Name: Plasterers Local 82 Pension Fund 

EIN/PN: 93-6075453/001

Plan Sponsor: Board of Trustees of the Plasterers Pension Trust

Address: 12812 NE Marx Street

Portland, OR 97230

Telephone Number: (503) 232-3257

Plan Year: Plan Year beginning January 1, 2016 

Enrolled Actuary Identification 

Name: Ladd E. Preppernau 

Enrollment Number: 14-06705

Address: 111 SW Fifth Avenue 

Suite 3700 

Portland, OR 97204 

Telephone Number: (503) 227-0634

Information on Plan Status 

I hereby certify that the Plasterers Local 82 Pension Fund is “critical” as that term is defined in IRC 

Section 432(b) for the plan year beginning January 1, 2016. Further, I hereby certify that to the best 

of my knowledge and belief, the actuarial assumptions used in preparing this certification are 

individually reasonable and represent my best estimate of future experience. Additionally, the 

“projected industry activity” assumption, as required under IRC Section 432(b)(3)(B)(iii), has been 

provided by the Board of Trustees. Supporting information for the classification is on page 3 and a 

summary of the actuarial assumptions and methods used in making the certification is on page 4. 

The information presented is applicable only for the purposes stated herein. 

Information on Scheduled Progress 

In July 2010, the Trustees adopted a Rehabilitation Plan, subsequently adopted by the bargaining 

parties, which included the following changes: 

 Reduced the Plan’s accrual rate to 1.0% of contributions for Hours of Service on or after

December 31, 2010.

 Restructured the Plan’s early retirement eligibility and benefits for Participants with a benefit

commencement date on or after August 1, 2010.

 Modified the Plan’s disability eligibility requirements for Participants commencing disability

benefits on or after August 1, 2010.

 Increased the Plan’s hourly supplemental contribution rate by $0.30 effective August 1, 2010.

Exhibit 15 Application Page 213
2 

j:\ppp\letters\160701.docx 

Under the Pension Protection Act, the Plan’s Rehabilitation Period commenced January 1, 2012 and 

ends December 31, 2021. In the Trustees’ judgment, they were unable to adopt a Rehabilitation Plan 

that would enable the Plan to emerge from critical status by the end of the Rehabilitation Period or a 

later date using reasonable assumptions. As a result, the Trustees adopted a Rehabilitation Plan 

that, in their judgment, consisted of all reasonable measures to forestall insolvency. 

Since that time, the Plan’s early retirement and disability benefit structures were further modified to 

reduce liabilities, and the contribution schedule specified under the Rehabilitation Plan was updated 

to: 

 Increase the hourly supplemental contribution by $1.00 effective in November 2012,

 Increase the hourly supplemental contribution by $2.20 effective on August 12, 2013, and

 Increase the hourly supplemental contribution by $1.40 effective on July 1, 2014.

The Trustees have represented that the Rehabilitation Plan originally adopted, and the subsequent 

updates to that Rehabilitation Plan, consist of all reasonable measures that can be taken to forestall 

insolvency at this time and provide the best possible chance for the Plan’s long term survival. 

To the best of my knowledge, the Rehabilitation Plan and subsequent updates have been 

implemented as intended by the Trustees. Therefore, I certify that the Plan is making scheduled 

progress by complying with the Rehabilitation Plan and subsequent updates, which are intended, but 

not guaranteed, to forestall insolvency. 

_______________________________ March 30, 2016

Ladd E. Preppernau Date 

Enrolled Actuary #14-06705 

Exhibit 15 Application Page 214
Exhibit 15 Application Page 215
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Exhibit 15 Application Page 230
Schedule R, Summary of Rehabilitation Plan 

Plasterers Local #82 Pension Fund 

Board of Trustees of the Plasterers Local #82 Pension Fund 

EIN/PN: 93-6075453 / 001 

j:\ppp\letters\170706.docx 

Rehabilitation Plan 

The Board of Trustees adopted a Rehabilitation Plan schedule that was adopted by the 

bargaining parties in July 2010 and has been updated periodically since that time. The benefit 

and contribution changes included in the adopted schedule are summarized below. 

x Future benefit accrual 

Future benefit accruals will not include $5.00 times Accrual Service or $2.50 times 

Future Accrual Service. The effect of this change is to base future accruals solely on 

1.0% of employer contributions (excluding contributions outside the formula). 

x Early retirement eligibility for retirements on or after August 1, 2010 but before August 1, 

2013. 

Tier 1 eligibility 

o Age 55 and at least 25 years of Credited Service, or 

o Age 55 and at least 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 55 and at least 15 years of Credited Service and at least 600 hours in two of 

the three years prior to the year of retirement 

Tier 2 eligibility 

o Age 57 and at least 15 years of Credited Service and not eligible for Tier 1, or 

o Age 57 and less than 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 57 and less than 15 years of Credited Service and at least 600 hours in two 

of the three years prior to the year of retirement 

Tier 3 eligibility 

o Age 57 and not eligible for Tier 1 or Tier 2 

x Early retirement eligibility for retirements on or after August 1, 2013. 

Tier 1 eligibility 

o Age 57 and at least 25 years of Credited Service, or 

o Age 57 and at least 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 57 and at least 15 years of Credited Service and at least 600 hours in two of 

the three years prior to the year of retirement 

Tier 3 eligibility 

o Age 57 and not eligible for Tier 1 

 

Exhibit 15 Application Page 231
Schedule R, Summary of Rehabilitation Plan 

Plasterers Local #82 Pension Fund 

Board of Trustees of the Plasterers Local #82 Pension Fund 

EIN/PN: 93-6075453 / 001 

j:\ppp\letters\170706.docx 

x Early Retirement Reduction Factors 

Reduction factors for each of the tiers are shown below. Factors will be interpolated by 

at retirement for ages not shown based on age in completed months. 

Percentage of Normal Retirement (Age 62) Benefit 

Retirement Age Tier 1 Tier 2 Tier 3 

62 100.0% 100.0% 100.0% 

61 97.0% 95.0% 90.7% 

60 94.0% 90.0% 82.3% 

59 91.0% 85.0% 74.9% 

58 88.0% 80.0% 68.2% 

57 85.0% 75.0% 62.2% 

56 77.5% N/A N/A 

55 70.0% N/A N/A 

x Disability benefit 

For Participants whose retirement commencement dates are on or after August 1, 2010, 

the disability benefit is eliminated for participants who do not become disabled within 

24 months of active employment. The maximum number of retroactive benefit payments 

for a disability claim is 12 months. 

For Participants whose retirement commencement dates are on or after August 1, 2010 

but before August 1, 2013, the disability benefit is 100% of the benefit earned under the 

Plan’s formula, commencing on their disability date and payable for their lifetime until

they reach the Plan’s Normal Retirement Date.

For Participants whose retirement commencement dates are on or after August 1, 2013, 

the disability benefit is 50% of the benefit earned under the Plan’s formula, commencing 

on their disability date and payable for their lifetime until they reach the Plan’s Normal 

Retirement Date. 

x Pre-retirement death benefits 

Beneficiaries of single participants who had at least 5 years of Credited Service and 

whose death occurred within 12 months of active employment may receive the total 

amount of the contributions paid to the Trust on the participant’s behalf up to a maximum 

of $15,000. While in critical status, this benefit may not be paid as a lump sum. 

Surviving spouses of participants may receive the Plan’s qualified pre-retirement 

survivor annuity or 60 monthly benefit payments of the participant’s accrued benefit as of 

the date of death. 

These changes apply for Participants whose deaths are on or after August 1, 2010. 

x Employer Contributions 

Additional contributions of $0.30 per hour beginning with July 2010 hours, additional 

contributions of $1.00 per hour beginning with November 2012 hours, additional 

Exhibit 15 Application Page 232
Schedule R, Summary of Rehabilitation Plan 

Plasterers Local #82 Pension Fund 

Board of Trustees of the Plasterers Local #82 Pension Fund 

EIN/PN: 93-6075453 / 001 

j:\ppp\letters\170706.docx 

contributions of $2.20 per hour beginning with August 2013 hours, and additional 

contributions of $1.40 per hour beginning with July 2014 hours are required under the 

rehabilitation plan, resulting in hourly pension contribution rates of $10.65 for 

Journeymen and $8.35 for Apprentices beginning with July 2014 hours. 

These additional contributions are intended to improve the Plan’s funding status. No 

future benefits will accrue on these additional employer contributions. The Trustees 

expect to review and possibly update the contribution schedule each year. 

Expected Annual Progress 

The Trustees determined that they were unable to adopt a rehabilitation plan that would enable 

the Plan to emerge from critical status using reasonable assumptions. As a result, the 

Rehabilitation Plan reflects reasonable measures to forestall insolvency. In developing the 

Rehabilitation Plan, the Trustees desired to maintain both employer participation in the Plan and 

some level of ongoing benefit accruals for active participants. The schedule described above 

was developed as the best option to meet these goals. 

A rehabilitation plan must provide annual standards for meeting the requirements of the plan; 

namely, that the plan emerge from critical status by the end of the Rehabilitation Period. 

However, because the Plan is not projected to emerge from critical status by the end of the 

Rehabilitation Period under the schedule, there are no standards available to confirm that the 

Plan will emerge. The Trustees will amend the rehabilitation plan as appropriate to incorporate 

standards, if and when these standards become better defined under the PPA, particularly when 

the plan is not projected to emerge from critical status, and the rehabilitation plan is based on all 

reasonable actions to forestall insolvency. 

The Trustees will review the rehabilitation plan annually, and modify it as appropriate, in order to 

meet the objective of the Plan’s long-term survival, consistent with requirements under the PPA 

to forestall insolvency and possibly emerge from critical status at a later date. The annual 

review will include a review of the funding percentage and the projection of the IRS minimum 

contribution credit balance. Included in the annual review will be consideration of employer 

contribution requirements, and the potential to increase these contributions to a higher level.

Exhibit 15 Application Page 233



Schedule R, Summary of Rehabilitation Plan 

Plasterers Local #82 Pension Fund 

Board of Trustees of the Plasterers Local #82 Pension Fund 

EIN/PN: 93-6075453 / 001 

j:\ppp\letters\170706.docx 

Rehabilitation Plan 

The Board of Trustees adopted a Rehabilitation Plan schedule that was adopted by the 

bargaining parties in July 2010 and has been updated periodically since that time. The benefit 

and contribution changes included in the adopted schedule are summarized below. 

 Future benefit accrual 

Future benefit accruals will not include $5.00 times Accrual Service or $2.50 times 

Future Accrual Service. The effect of this change is to base future accruals solely on 

1.0% of employer contributions (excluding contributions outside the formula). 

 Early retirement eligibility for retirements on or after August 1, 2010 but before August 1, 

2013. 

Tier 1 eligibility 

o Age 55 and at least 25 years of Credited Service, or 

o Age 55 and at least 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 55 and at least 15 years of Credited Service and at least 600 hours in two of 

the three years prior to the year of retirement 

Tier 2 eligibility 

o Age 57 and at least 15 years of Credited Service and not eligible for Tier 1, or 

o Age 57 and less than 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 57 and less than 15 years of Credited Service and at least 600 hours in two 

of the three years prior to the year of retirement 

Tier 3 eligibility 

o Age 57 and not eligible for Tier 1 or Tier 2 

 Early retirement eligibility for retirements on or after August 1, 2013. 

Tier 1 eligibility 

o Age 57 and at least 25 years of Credited Service, or 

o Age 57 and at least 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 57 and at least 15 years of Credited Service and at least 600 hours in two of 

the three years prior to the year of retirement 

Tier 3 eligibility 

o Age 57 and not eligible for Tier 1 

Exhibit 15 Application Page 237
Schedule R, Summary of Rehabilitation Plan 

Plasterers Local #82 Pension Fund 

Board of Trustees of the Plasterers Local #82 Pension Fund 

EIN/PN: 93-6075453 / 001 

j:\ppp\letters\170706.docx 

 Early Retirement Reduction Factors 

Reduction factors for each of the tiers are shown below. Factors will be interpolated by 

at retirement for ages not shown based on age in completed months. 

Percentage of Normal Retirement (Age 62) Benefit

Retirement Age Tier 1 Tier 2 Tier 3

62 100.0% 100.0% 100.0%

61 97.0% 95.0% 90.7%

60 94.0% 90.0% 82.3%

59 91.0% 85.0% 74.9%

58 88.0% 80.0% 68.2%

57 85.0% 75.0% 62.2%

56 77.5% N/A N/A

55 70.0% N/A N/A

 Disability benefit 

For Participants whose retirement commencement dates are on or after August 1, 2010, 

the disability benefit is eliminated for participants who do not become disabled within 

24 months of active employment. The maximum number of retroactive benefit payments 

for a disability claim is 12 months. 

For Participants whose retirement commencement dates are on or after August 1, 2010 

but before August 1, 2013, the disability benefit is 100% of the benefit earned under the 

Plan’s formula, commencing on their disability date and payable for their lifetime until 

they reach the Plan’s Normal Retirement Date.

For Participants whose retirement commencement dates are on or after August 1, 2013, 

the disability benefit is 50% of the benefit earned under the Plan’s formula, commencing 

on their disability date and payable for their lifetime until they reach the Plan’s Normal 

Retirement Date. 

 Pre-retirement death benefits 

Beneficiaries of single participants who had at least 5 years of Credited Service and 

whose death occurred within 12 months of active employment may receive the total 

amount of the contributions paid to the Trust on the participant’s behalf up to a maximum 

of $15,000. While in critical status, this benefit may not be paid as a lump sum. 

Surviving spouses of participants may receive the Plan’s qualified pre-retirement 

survivor annuity or 60 monthly benefit payments of the participant’s accrued benefit as of 

the date of death. 

These changes apply for Participants whose deaths are on or after August 1, 2010. 

 Employer Contributions 

Additional contributions of $0.30 per hour beginning with July 2010 hours, additional 

contributions of $1.00 per hour beginning with November 2012 hours, additional 

Exhibit 15 Application Page 238
Schedule R, Summary of Rehabilitation Plan 

Plasterers Local #82 Pension Fund 

Board of Trustees of the Plasterers Local #82 Pension Fund 

EIN/PN: 93-6075453 / 001 

j:\ppp\letters\170706.docx 

contributions of $2.20 per hour beginning with August 2013 hours, and additional 

contributions of $1.40 per hour beginning with July 2014 hours are required under the 

rehabilitation plan, resulting in hourly pension contribution rates of $10.65 for 

Journeymen and $8.35 for Apprentices beginning with July 2014 hours. 

These additional contributions are intended to improve the Plan’s funding status. No 

future benefits will accrue on these additional employer contributions. The Trustees 

expect to review and possibly update the contribution schedule each year. 

Expected Annual Progress 

The Trustees determined that they were unable to adopt a rehabilitation plan that would enable 

the Plan to emerge from critical status using reasonable assumptions. As a result, the 

Rehabilitation Plan reflects reasonable measures to forestall insolvency. In developing the 

Rehabilitation Plan, the Trustees desired to maintain both employer participation in the Plan and 

some level of ongoing benefit accruals for active participants. The schedule described above 

was developed as the best option to meet these goals. 

A rehabilitation plan must provide annual standards for meeting the requirements of the plan; 

namely, that the plan emerge from critical status by the end of the Rehabilitation Period. 

However, because the Plan is not projected to emerge from critical status by the end of the 

Rehabilitation Period under the schedule, there are no standards available to confirm that the 

Plan will emerge. The Trustees will amend the rehabilitation plan as appropriate to incorporate 

standards, if and when these standards become better defined under the PPA, particularly when 

the plan is not projected to emerge from critical status, and the rehabilitation plan is based on all 

reasonable actions to forestall insolvency. 

The Trustees will review the rehabilitation plan annually, and modify it as appropriate, in order to 

meet the objective of the Plan’s long-term survival, consistent with requirements under the PPA 

to forestall insolvency and possibly emerge from critical status at a later date. The annual 

review will include a review of the funding percentage and the projection of the IRS minimum 

contribution credit balance. Included in the annual review will be consideration of employer 

contribution requirements, and the potential to increase these contributions to a higher level.

Exhibit 15 Application Page 239
Exhibit 15 Application Page 240
Exhibit 15 Application Page 241
Exhibit 15 Application Page 242
Exhibit 15 Application Page 243

Exhibit 15 Application Page 245
Exhibit 15 Application Page 246
Exhibit 15 Application Page 247
Exhibit 15 Application Page 248
Exhibit 15 Application Page 249
Exhibit 15 Application Page 250
Exhibit 15 Application Page 251
Exhibit 15 Application Page 252
Exhibit 15 Application Page 253
Exhibit 15 Application Page 254
Exhibit 15 Application Page 255
Exhibit 15 Application Page 256
Exhibit 15 Application Page 257
Exhibit 15 Application Page 258
Exhibit 15 Application Page 259
Exhibit 15 Application Page 260
Exhibit 15 Application Page 261
Exhibit 15 Application Page 262
Exhibit 15 Application Page 263
Exhibit 15 Application Page 264
Exhibit 15 Application Page 265
Exhibit 15 Application Page 266
Exhibit 15 Application Page 267
Exhibit 15 Application Page 268
Exhibit 15 Application Page 269
Exhibit 15 Application Page 270
Exhibit 15 Application Page 271
Exhibit 15 Application Page 272
Exhibit 15 Application Page 273
Exhibit 15 Application Page 274
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

REHABILITATION PLAN FOR THE 

PLASTERERS LOCAL #82 PENSION FUND 

Introduction 

The Pension Protection Act of 2006 (“PPA”) requires an annual actuarial status determination 

for multiemployer pension plans like the Plasterers Local #82 Pension Fund (the “Plan”). A 

certification of endangered status or critical status requires specific action from the plan 

trustees. On March 30, 2010 the Plan actuary certified to the U.S. Department of the Treasury 

and the Trustees that the Plan is in critical status for the plan year beginning January 1, 2010. 

This was communicated in April 2010 to all plan participants, participating unions and 

participating employers. 

A plan in critical status must develop and maintain a rehabilitation plan. In general, a 

rehabilitation plan is comprised of one or more schedules made up of benefit adjustments 

and/or contribution increases intended to return the Plan to actuarial balance over the 

Rehabilitation Period. This schedule(s) is presented to the collective bargaining parties for 

adoption. The Rehabilitation Period is a ten-year period ending no later than 12 years after the 

date the Plan is certified as critical. 

However, due to a unique convergence of circumstances, the Trustees have determined that 

they are unable to adopt a rehabilitation plan that will enable the Plan to emerge from critical 

status using reasonable assumptions. This determination is based on returns in the investment 

markets and their impact on the Plan’s assets, the unstable state of the economy, and the state 

of the construction industry. In making this determination, the Trustees have reviewed all 

reasonable options (i.e., reducing the adjustable benefits and requiring employer contribution 

rate increases). Based on that review, the Trustees developed the rehabilitation plan, described 

herein, as the best long term option for the Plan. The Trustees believe an alternative 

rehabilitation plan with contributions sufficient to bring the Plan out of critical status would result 

in the withdrawal of most or all of its participating employers, and/or prompt an increase in 

employer bankruptcy filings. Neither outcome is judged to be acceptable to the Trustees. 

Therefore, the Trustees have adopted a rehabilitation plan that reflects reasonable measures to 

forestall insolvency. In creating such a rehabilitation plan under the current circumstances, the 

Trustees have employed all reasonable measures to avoid insolvency that are available to date. 

In forestalling insolvency, the rehabilitation plan also provides time for a potential recovery in the 

economy and the investment market. 

Summary of Rehabilitation Plan Schedule 

The rehabilitation plan is effective August 1, 2010 and consists of a single schedule that sets 

forth the benefit and contribution requirements under the Plan. The collective bargaining parties 

are responsible for adopting the schedule. Adoption is required no later than six months (180 

days) after the termination of their collective bargaining agreement in effect on the date the Plan 

entered critical status. 

The details of the schedule are listed below in a separate exhibit. The following is a brief 

summary of the schedule: 

Application Page 275
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

 The schedule requires reductions in adjustable benefits, as outlined in the detailed 

descriptions. These reductions include changes in early retirement benefits, disability 

benefits, and death benefits. 

 The schedule reduces benefit accruals earned in the future. 

 The schedule requires additional employer contributions. The additional contributions 

required under the schedule will not translate into additional benefit accruals. These 

contributions are directed solely toward improving the Plan’s funding status. 

In general, the changes in adjustable benefits apply for Participants whose benefit 

commencement date is after August 1, 2010. 

Additional Plan Changes Adopted in 2009 

The separate exhibit included below also includes plan changes already adopted by the 

Trustees. These changes are not part of the rehabilitation plan, because they have already 

been adopted. However, we have included them in the exhibit for completeness, to show all 

benefit changes made by the Trustees in response to the poor investment returns of 2008 and 

pending critical status certification. These plan changes are as follows: 

 The benefit formula was modified to reduce the percentage applied to employer 

contributions from 2.0% to 1.0% for Future Accrual Service on or after January 1, 2009. 

 Hourly contribution rates were increased 15% effective June 1, 2009 from $5.00 to $5.75 

for Journeymen and from $3.00 to $3.45 for Apprentices. 

 For hours worked on or after June 1, 2009, a portion of the hourly contribution rate is 

excluded from the benefit formula (i.e. no benefit accruals result from a portion of the 

contributions). For Journeymen, $4.25 per hour is included in the formula and for 

Apprentices, $2.55 is included in the formula. 

Basis for Schedule, and other Alternatives Considered 

The Trustees looked at all options for benefit adjustments and contribution increases in 

developing the rehabilitation plan. Throughout the process, the goal of the Trustees was the 

future survival of the Plan. Given this goal, the Trustees desired to maintain both employer 

participation in the Plan and some level of ongoing benefit accruals for active participants. The 

schedule was developed as the best option to meet these goals. Additional considerations for 

benefits and contributions were as follows: 

Benefits 

Future accruals under the schedule were reduced to 1% of contributions, which is the 

accrual rate specified under the default schedule defined by the PPA. The contributions that 

are currently specified as funding-only contributions (i.e. do not result in benefit accruals) 

remain outside the formula, as opposed to moving them inside the formula as the default 

schedule may require. As part of the discussion on the rehabilitation plan, the Trustees 

considered reducing the accrual rate to a lower percentage, or even freezing accruals, but 

this was viewed as inconsistent with a viable plan with ongoing value for active participants. 

In particular, freezing accruals could lead to increased employer withdrawals, as the 

collective bargaining parties see no benefit in ongoing participation. 

Application Page 276
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

The Plan’s early retirement benefits have been restructured so that, in general, long service 

participants retiring directly from active employment receive Plan’s most valuable early 

retirement provisions. Other participants will be subject to later eligibility and steeper 

reductions in benefits. The Trustees considered eliminating all early retirement subsidies 

offered by the Plan, but felt that the Plan should continue to include incentives for 

Participants to work in covered employment until retirement. As a result, the rehabilitation 

plan is structured to make the Plan’s early retirement subsidies harder to realize, but still 

reward career employees who work to retirement. Further reductions were considered to be 

counter to the business needs of the interested parties, and resulted in minimal financial 

improvement. 

The eligibility requirement for disability retirement was revised to include a requirement that 

the disability date must be within 24 months of active employment. Other requirements 

already included in the Plan include at least 15 years of Credited Service and eligibility for 

Social Security disability benefits. The Trustees considered eliminating disability benefits 

entirely, but this resulted in minimum financial improvement at a high cost for those affected. 

Contributions 

The contribution levels included in the schedule were selected to maximize contributions to 

the Plan while limiting employer withdrawals and employer bankruptcies. In this process, 

the Trustees considered the following: 

 Increasing employer contributions to a level higher than employer withdrawal liability 

assessments that would otherwise apply if the employers withdrew, would likely 

trigger withdrawals from many employers. 

 Increasing employer contributions to levels above what they could reasonably expect 

to pay could also trigger withdrawals from many employers, and could result in 

bankruptcy for some participating employers. 

 Increasing employer contribution levels to a point where employers could no longer 

competitively bid on plastering work would lead to a significant decline in active 

hours, which would be detrimental to the Trustees’ goal of ensuring the future 

survival of the Plan. 

The Trustees considered the contribution increase levels that would be required, in 

combination with the benefit adjustments, for the Plan to emerge from critical status by the 

end of the Rehabilitation Period. However, the Trustees concluded that contributions at 

these levels would result in withdrawals or bankruptcy for many or most employers. 

Therefore, the Trustees determined that this would not represent a reasonable rehabilitation 

plan where the Plan can reasonably be expected to emerge from critical status. 

The Trustees also reviewed the default plan, as defined by the PPA. The default plan would 

require slightly more onerous benefit reductions than the adjustments included in this plan 

that would result in minimal financial improvement, and would also require contribution 

increases at a much higher level. The Trustees concluded that the default plan would not 

be a reasonable or practical plan, since it would likely lead to many employer withdrawals, 

and may put some employers at risk for bankruptcy. 

Application Page 277
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

In future years, the Trustees expect to review the rehabilitation plan annually, and consider 

adjustments to the required employer contributions. 

Given the options available under the PPA, the combination of benefit adjustments and 

contribution increases included in the schedule represents the option that provides the best 

opportunity for the long term survival of the Plan. This schedule reduces or eliminates a 

significant amount of the Plan’s adjustable benefits resulting in a reduction in plan liabilities, 

maximizes the employer contribution level that can reasonably be paid, and provides time for 

potential recovery of the investment market. These actions are intended to forestall possible 

insolvency, and maximize the probability that the Plan will eventually emerge from critical status. 

Other options considered by the Trustees included the following: 

 Sufficient contribution increases so that the Plan is projected to emerge from critical 

status at a later date, after the Rehabilitation period. Contributions at this level were still 

determined to be unreasonably high. 

 Amending the plan to increase the normal retirement age to an age later than 62. 

However, it is our understanding that the IRS does not consider this an allowable option. 

 Extending the amortization periods. This option would still require employer 

contributions at a level determined to be unreasonably high. 

Rehabilitation Plan Standards and Annual Review 

A rehabilitation plan must provide annual standards for meeting the requirements of the plan; 

namely, that the plan emerge from critical status by the end of the Rehabilitation Period. 

However, because the Plan is not projected to emerge from critical status by the end of the 

Rehabilitation Period under the schedule, there are no standards available to confirm that the 

Plan will emerge. The Trustees will amend the rehabilitation plan as appropriate to incorporate 

standards, if and when these standards become better defined under the PPA, particularly when 

the plan is not projected to emerge from critical status, and the rehabilitation plan is based on all 

reasonable actions to forestall insolvency. 

The Trustees will review the rehabilitation plan annually, and modify it as appropriate, in order to 

meet the objective of the Plan’s long-term survival, consistent with requirements under the PPA 

to forestall insolvency and possibly emerge from critical status at a later date. The annual 

review will include a review of the funding percentage and the projection of the IRS minimum 

contribution credit balance. Included in the annual review will be consideration of employer 

contribution requirements, and the potential to increase these contributions to a higher level. 

Notwithstanding any subsequent change in benefit and contribution schedules, a schedule of 

contribution rates provided by the Trustees and relied upon by the bargaining parties in 

negotiating a collective bargaining agreement shall remain in effect for the duration of that 

collective bargaining agreement. 

Adoption of the Rehabilitation Plan Schedule 

Collective bargaining parties must adopt the following rehabilitation plan schedule by the 

expiration of the collective bargaining agreement (CBA) in effect at the time the Plan entered 

critical status. If the parties cannot come to an agreement on adopting the schedule, the 

schedule is automatically implemented by law six months (180 days) after the expiration of the 

collective bargaining agreement that was in effect on the date the Plan entered critical status 

Application Page 278
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

(even if a new contract or extension has been signed.) An employer’s failure to contribute at the 

rates reflected in the schedule will result in excise taxes (equal to 100% of unpaid contributions) 

as provided under the PPA. Ultimately, this will result in a determination that the employer has 

withdrawn from the Plan, and the employer will be subject to withdrawal liability. 

The Trustees have the authority and the responsibility to adopt a rehabilitation plan schedule for 

participants who are not employees of an employer with employees covered by a CBA. This 

includes participants who have terminated active participation in the Plan but have a vested 

benefit, as well as participants who are employees of a contributing employer which does not 

contribute for any employees covered under a CBA. The Trustees have adopted the schedule 

for these participants effective August 1, 2010. 

Interim Contribution Surcharges 

Effective for contributions due in September 2010 (for August 2010 hours), a 5% automatic 

contribution surcharge as required by the PPA is required for all participating employers. Under 

the PPA, this surcharge will automatically increase to 10% effective for contributions for January 

2011 hours due in February 2011 and all later years. 

The contribution surcharge ends when an employer adopts the rehabilitation schedule. At that 

point, employer contributions are defined by the rehabilitation schedule. 

Restrictions on Plan Changes While Critical 

While the Plan is in critical status there are certain restrictions on changes that can be made to 

the Plan. These include: 

 Collective bargaining agreements cannot be accepted that adversely affect the Plan’s 

funding status. For example, new agreements cannot reduce the contribution rate or 

exclude new employees. 

 Amendments cannot be passed that are inconsistent with the rehabilitation plan. 

 Amendments cannot be passed that increase benefits, unless they are paid for with 

contributions not required for the rehabilitation plan. 

 Amendments cannot be passed that increase the liabilities of the Plan, unless such 

amendments are required by law. 

 The Plan cannot pay benefits such as lump sum or similar benefits and no annuity 

purchases can be made (small lump sum distributions are permitted). 

Potential Changes to Rehabilitation Plan 

The Trustees reserve the right to alter, change and revise the Plasterers Local #82 Pension 

Fund rehabilitation plan, in whole or in part, in accordance with the Pension Protection Act of 

2006 and any accompanying regulations issued thereunder. Any omissions and oversights will 

be interpreted in accordance with the applicable law and regulations. 

Adoption Date 

This rehabilitation plan was adopted in July 2010 by the Board of Trustees. 

Application Page 279
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

Plasterers Local #82 Pension Fund 

2010 Rehabilitation Plan 

Plan Benefit Changes 

The following benefit changes were adopted by the Trustees as plan amendments in advance of 

the rehabilitation plan: 

 Future benefit accrual 

The benefit formula was modified to reduce the percentage applied to employer 

contributions from 2.0% to 1.0% for Future Accrual Service on or after January 1, 2009. 

 Contribution increases 

Hourly contribution rates were increased 15% effective June 1, 2009 from $5.00 to $5.75 

for Journeymen and from $3.00 to $3.45 for Apprentices. 

 Contributions outside the benefit formula 

For hours worked on or after June 1, 2009, a portion of the hourly contribution rate is 

excluded from the benefit formula (i.e. no benefit accruals result from a portion of the 

contributions). For Journeymen, $4.25 per hour is included in the formula and for 

Apprentices, $2.55 is included in the formula. 

The following benefit changes will be reflected as part of the rehabilitation plan 

 Future benefit accrual 

Future benefit accruals will not include $5.00 times Accrual Service or $2.50 times 

Future Accrual Service. The effect of this change is to base future accruals solely on 

1.0% of employer contributions (excluding contributions outside the formula). 

 Early retirement eligibility 

There will be three tiers of early retirement available to participants: 

Tier 1 eligibility 

o Age 55 and at least 25 years of Credited Service, or 

o Age 55 and at least 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 55 at least 15 years of Credited Service and at least 600 hours in two of the 

three years prior to the year of retirement 

Tier 2 eligibility 

o Age 57 and at least 15 years of Credited Service and not eligible for Tier 1, or 

o Age 57 and less than 15 years of Credited Service and at least 400 hours in the 

year of retirement or the year prior to retirement, or 

o Age 57 and less than 15 years of Credited Service and at least 600 hours in two 

of the three years prior to the year of retirement 

Tier 3 eligibility 

o Age 57 and not eligible for Tier 1 or Tier 2 

Application Page 280
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

 Early Retirement Reduction Factors 

Reduction factors for each of the tiers are shown below. Factors will be interpolated by 

at retirement for ages not shown based on age in completed months. 

Percentage of Normal Retirement (Age 62) Benefit 

Retirement Age Tier 1 Tier 2 Tier 3 

62 100.0% 100.0% 100.0% 

61 97.0% 95.0% 90.7% 

60 94.0% 90.0% 82.3% 

59 91.0% 85.0% 74.9% 

58 88.0% 80.0% 68.2% 

57 85.0% 75.0% 62.2% 

56 77.5% N/A N/A 

55 70.0% N/A N/A 

This change applies for Participants whose retirement commencement dates are on or 

after August 1, 2010. 

 Disability benefit 

The disability benefit is eliminated for participants who do not become disabled within 24 

months of active employment. The maximum number of retroactive benefit payments for 

a disability claim is 12 months. 

These changes apply for Participants whose retirement commencement dates are on or 

after August 1, 2010. 

 Pre-retirement death benefits 

Beneficiaries of single participants who had at least 5 years of Credited Service and 

whose death occurred within 12 months of active employees may receive the total 

amount of the contributions paid to the Trust on the participant’s behalf up to a maximum 

of $15,000. While in critical status, this benefit may not be paid as a lump sum. 

Surviving spouses of participants may receive the Plan’s qualified pre-retirement 

survivor annuity or 60 monthly benefit payments of the participant’s accrued benefit as of 

the date of death. 

These changes apply for Participants whose deaths are on or after August 1, 2010. 

Employer Contributions

Additional contributions of $0.30 per hour beginning with July 2010 hours are required under the 

rehabilitation plan, resulting in hourly pension contribution rates of $6.05 for Journeymen and 

$3.75 for Apprentices beginning with July 2010 hours. 

These additional contributions are intended to improve the Plan’s funding status. No future 

benefits will accrue on the additional percentage increase of employer contributions. The 

Trustees expect to review and possibly update the contribution schedule each year. 

Application Page 281
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

2012 UPDATE TO THE REHABILITATION PLAN FOR THE 

PLASTERERS LOCAL #82 PENSION FUND 

In November 2012, the bargaining parties increased the Plan’s contribution rate by $1.00 per 

hour, and this increase has been incorporated into the rehabilitation plan contribution schedule 

as part of the 2012 annual review process. 

Application Page 282
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

2013 UPDATE TO THE REHABILITATION PLAN FOR THE 

PLASTERERS LOCAL #82 PENSION FUND 

Plan Benefit Changes 

The following benefit changes will be reflected as part of the 2013 rehabilitation plan update 

 Early Retirement 

There will be two tiers of early retirement available to participants. 

Tier 1 

Eligibility: Age 57 and either (1) at least 25 years of Accrual Service or (2) at 

least 15 years of Accrual Service and at least 400 hours in this 

Plan in the year of retirement or the year prior to retirement 

Benefit: Accrued Benefit reduced 3% per year for each year early 

retirement precedes age 62 

Others 

Eligibility: Vested, age 57, and not eligible for Tier 1 

Benefit: Actuarial equivalent benefit equal to Accrued Benefit multiplied by 

the appropriate factor from the following table (factors will be prorated for non-integer ages): 

Retirement Age % of Accrued Benefit 

62 100.0% 

61 90.7% 

60 82.3% 

59 74.9% 

58 68.2% 

57 62.2% 

This change applies for Participants whose retirement commencement dates are on or 

after August 1, 2013. 

 Disability Benefit 

The disability benefit is reduced from 100% to 50% of the Accrued Benefit for 

Participants whose disability commencement dates are on or after August 1, 2013. 

Employer Contributions

Additional contributions of $2.20 per hour beginning with August 2013 hours, and an additional 

$1.40 per hour beginning with July 2014 hours, are required for all Participants. These 

additional contributions are intended to improve the Plan’s funding status. No future benefits 

will accrue on the additional increase of employer contributions. 

Application Page 283
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

Other Changes

 Effective with hours on or after April 1, 2013, all “off-benefit” amounts for which there 

are no accruals for an employee shall not be subject to reciprocity transfers pursuant 

to a reciprocity agreement. These amounts are not made on behalf of any specific 

employee, but are instead made solely to improve the funded status of the Plan, and 

therefore these amounts will be retained by the Plan. 

 Effective April 1, 2013, the Trustees have clarified that Plan will not purchase any 

annuity for any participant, regardless of the Plan’s zone status. 

 

Application Page 284
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

2017 UPDATE TO THE REHABILITATION PLAN FOR THE 

PLASTERERS LOCAL #82 PENSION FUND 

Plan Benefit Changes 

The following benefit changes will be reflected as part of the 2017 rehabilitation plan update 

 Early Retirement 

Tier 1 early retirement is eliminated. Participants are still eligible for early retirement 

upon attaining age 57, but all early retirement benefits will now use the actuarial 

equivalent reductions previously applied to those not eligible for Tier 1 benefits. 

This change applies for Participants whose retirement commencement dates are on or 

after May 1, 2018. 

 Suspension of Benefit Rules 

Participants receiving a retirement benefit who have not yet reach the Plan’s normal 

retirement age will have their benefit suspended for any month in which they work 1 or 

more hours in the construction industry, except in the case of covered employment 

during a manpower shortage. 

Participants receiving a retirement benefit who have reached the Plan’s normal 

retirement age will have their benefit suspended for any calendar month in which they 

work 40 or more hours under covered employment within the industry and in the 

geographical region, except in the case of covered employment during a manpower 

shortage. 

 Death Benefits 

The Plan’s 60-Month Survivor Annuity and Single Sum Death Benefit options are 

eliminated. 

 Forms of Benefit 

Effective for benefits commencing on or after May 1, 2018, the Plan will only offer the 

following benefit options: 

 Single Life Annuity (normal form) 

 50% Joint-and-Survivor Annuity 

 75% Joint-and-Survivor Annuity 

 100% Joint-and-Survivor Annuity 

Furthermore, the Joint-and-Survivor Annuity options will no longer be available with a 

non-spouse beneficiary. 

Contribution Rate changes 

Effective for hours worked on or after January 1, 2018 (or such later date as determined by 

collective bargaining and the Trustees), the journeyman pension plan contribution rate may be 

reduced from $10.75 to $8.75 per hour (with $4.35 “inside the formula”) and the apprentice 

pension plan contribution rate may be reduced from $8.45 to $6.45 per hour (with $2.65 “inside 

the formula”). 

Application Page 285
Exhibit 16 

G:\DBUSER\PPP\MPRA Suspensions\Application Documents\Exh bit 16 _ Rehabilitation Plan.docx 

If total annual hours do not increase to anticipated levels, contribution rates will be adjusted 

based on the following table: 

Determination Date 

For Hours 

Worked 

Beginning 

Average 

Hours 

Level 

Journeyman 

Rate 

Apprentice 

Rate 

December 31, 2018 July 1, 2019 

< 125,000 $9.75 $7.45 

> 125,000 $8.75 $6.45 

Each December 31 

Beginning in 2019 

Subsequent 

July 1 

Less than 

125,000 

$10.75 $8.45 

125,000 – 

135,000 

$9.75 $7.45 

135,000 or 

More 

$8.75 $6.45 

For purposes of the above table, “Average Hours Level” shall be the average hours reported 

during the 2-year period ending on the Determination Date. Regardless of the hours level and 

contributions in effect, the portion of the contribution “inside the formula” will remain at $4.35 and 

$2.65 for journeyman and apprentices, respectively. 

Application Page 286
Milliman Actuarial Valuation 

December 2017 

PLASTERERS LOCAL #82 PENSION FUND 

January 1, 2017 Actuarial Valuation 

Prepared by: 

Milliman, Inc. 

Ladd E. Preppernau, FSA, EA, MAAA 

Principal and Consulting Actuary 

Casey B. Baldwin, FSA, EA, MAAA 

Consulting Actuary 

John Q. Rowland, ASA, MAAA 

Associate Actuary 

Milliman, Inc. 

111 SW Fifth Avenue, Suite 3700 

Portland OR 97204-3654 

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

Exhibit 17 Application Page 287
\\millimanpdx.milliman.com\jdrive\ppp\reports\v17.docx 

Offices in Principal Cities Worldwide 

111 SW Fifth Avenue 

Suite 3700 

Portland, OR 97204 

USA 

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

December 1, 2017 

Trustees 

Plasterers Local #82 Pension Fund 

Dear Trustees: 

As requested, we performed an actuarial valuation of the Plasterers Local #82 Pension 

Fund as of January 1, 2017, for the plan year ending December 31, 2017. Our findings are 

set forth in this actuary’s report. 

In preparing this report, we relied, without audit, on information supplied by the 

administrative office and the financial statements prepared by the Plan’s independent 

accountant. This information includes, but is not limited to, Plan documents and provisions, 

employee data, and financial information. The financial information includes certain 

adjustments to the initial audited financial statements, as instructed by the Plan’s auditor. 

In our examination of these data, we have found them reasonably consistent and 

comparable with data used for other purposes. The valuation results depend on the 

integrity of this information. If any of this information is inaccurate or incomplete our results 

may be different and our calculations may need to be revised. 

For actuarial requirements under ERISA, all costs, liabilities, rates of interest, and other 

factors under the Plan (except when mandated directly by the Internal Revenue Code and 

its regulations) have been determined on the basis of actuarial assumptions and methods 

which are individually reasonable (taking into account the experience of the Plan and 

reasonable expectations) and which, in combination, offer our best estimate of anticipated 

experience under the Plan. We completed this actuarial valuation in accordance with our 

understanding of IRS minimum funding requirements as amended by subsequent 

legislation, and reflecting all proposed regulations and guidance issued to date. 

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to many factors, including: 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 our assignment, we did not perform an analysis of the potential range of future 

measurements. 

Actuarial computations under ERISA are to determine the minimum required and maximum 

allowable funding amounts for an ongoing plan. The calculations in the enclosed report 

have been made on a basis consistent with our understanding of ERISA. For actuarial 

requirements under FASB ASC Topic 960, all liabilities, rates of interest, and other factors 

under the Plan have been determined on the basis of actuarial assumptions and methods 

Exhibit 17 Application Page 288

Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

TABLE OF CONTENTS 

 Page

1. Summary of Valuation Results ................................................................................................... 1 

2. Introduction .................................................................................................................................. 8 

3. Trust Fund Activity ...................................................................................................................... 9 

 Exhibit 3.1 – Market Value of Assets ........................................................................................ 10 

 Exhibit 3.2 – Receipts and Disbursements ............................................................................... 11 

 Exhibit 3.3 – Development of the Actuarial Value of Assets ..................................................... 12 

 Exhibit 3.4 – Historical Investment Return ................................................................................ 13 

4. Contribution Requirements ...................................................................................................... 14 

 Exhibit 4.1 – Unfunded Actuarial Liability ................................................................................. 15 

 Exhibit 4.2 – Actuarial Balance Sheet ....................................................................................... 16 

 Exhibit 4.3 – Development of Normal Cost ............................................................................... 17 

 Exhibit 4.4 – Development of Minimum Funding Standard Account ........................................ 18 

 Exhibit 4.5 – Maximum Tax-Deductible Contribution ................................................................ 21 

5. Funded Status ............................................................................................................................ 23 

 Exhibit 5.1 – Statement of Actuarial Present Value of Accumulated Plan Benefits .................. 24 

 Exhibit 5.2 – Statement of Changes in Actuarial Present Value of Accumulated 

Plan Benefits ........................................................................................................ 25 

 Exhibit 5.3 – Withdrawal Liability .............................................................................................. 26 

6. History and Projections ............................................................................................................. 27 

 Exhibit 6.1 – Historical Funding Progress ................................................................................. 28 

 Exhibit 6.2 – Historical Participant Statistics ............................................................................. 29 

 Exhibit 6.3 – Projected Benefit Payouts .................................................................................... 30 

APPENDICES

 A – Summary of Principal Plan Provisions ............................................................................... 31 

 B – Summary of Employee Data ............................................................................................... 36 

 Exhibit B.1 – Distribution of Active Participants ................................................................. 37 

 Exhibit B.2 – Distribution of Vested Inactive Participants ................................................... 38 

 Exhibit B.3 – Summary of Retirees and Beneficiaries ........................................................ 39 

 C – Actuarial Assumptions and Methods .................................................................................. 40 

Exhibit 17 Application Page 290
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Summary of Valuation Results 

Exhibit 17 Application Page 291
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 1 

Plasterers Local #82 Pension Fund 

A. Overview of Results 

Actuarial Valuation 

for Plan Year Beginning 

January 1, 2016 January 1, 2017 

Assets 

Market Value of Assets $18,523,954 $18,471,135 

Actuarial Value of Assets $20,904,943 $19,993,589 

Investment Return for Prior Plan Year 

 Market Value of Assets 1.1% 6.7% 

 Actuarial Value of Assets 2.7% 1.7% 

Funded Status 

Present Value of Accrued Benefits $ 33,712,393 $39,185,840 

Market Value Funded Percentage 55% 47% 

Actuarial Value (PPA) Funded Percentage 62% 51% 

Withdrawal Liability 

Present Value of Vested Benefits $33,617,237 $38,426,590 

Unamortized Balance of Reduced Adjustable Benefits $153,654 $143,975 

Market Value of Assets $18,523,954 $18,471,135 

Total Withdrawal Liability $15,246,937 $20,099,429 

Credit Balance and Contribution Requirements 

Present Value of Accrued Benefits $33,712,393 $39,185,840 

Actuarial Value of Assets $20,904,943 $19,993,589 

Unfunded Actuarial Liability $12,807,450 $19,192,251 

Normal Cost $362,812 $451,344 

Credit Balance at End of Prior Year $872,488 $80,976 

Contribution Required to Preserve Credit Balance $1,878,808 $2,573,106 

Anticipated Contribution $1,037,790 $1,263,548 

Participant Data 

Active Participants 70 88 

 Average Age 45.4 42.6 

 Average Credited Service 14.9 11.5 

 Average Hours Worked 1,366 1,168 

Vested Inactive Participants 107 101 

 Average Accrued Monthly Benefit $943 $990 

Floored Retired Participants and Beneficiaries 36 31 

 Average Age 84 84 

 Average Monthly Pension $808 $831 

Non-Floored Retired Participants and Beneficiaries 89 97 

 Average Age 65 66 

 Average Monthly Pension $1,661 $1,640 

Total Participants in Valuation 302 317 

Certification Status Critical Critical and Declining

Exhibit 17 Application Page 292
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 2 

Plasterers Local #82 Pension Fund 

B. Purpose of This Report 

This report has been prepared for the Plasterers Local #82 Pension Fund (Plan) as of January 1, 2017 to: 

 Review the Plan’s funded status as of January 1, 2017. 

 Review the experience for the plan year ending December 31, 2016, including the impact of the 

Plan’s investment performance during the year and changes in plan participant demographics that 

impact liabilities. 

 Calculate the Plan’s funding requirements under ERISA for the plan year beginning January 1, 2017. 

 Determine the Plan’s unfunded vested benefit liability for withdrawal liability purposes as of 

December 31, 2016 in accordance with the Multiemployer Pension Plan Amendments Act of 1980. 

 Determine the actuarial present value of accumulated plan benefits as of December 31, 2016 for 

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

C. Plan Provisions 

The valuation reflects the plan provisions in effect on January 1, 2017. Since the last valuation, the 

bargaining parties adopted a collective bargaining agreement that included additional inside the formula 

contributions of $0.10 per hour in July 2016. 

D. Actuarial Methods and Assumptions 

Other than the assumptions mandated by the IRS, the following change was made to the methods and 

assumptions for this valuation: 

 The investment return assumption was lowered from 7.00% to 6.25% to better reflect expectations for 

future investment returns. 

 The mortality assumption for healthy participants was updated to the RP-2014 Blue Collar mortality 

tables, projected generationally using the MP-2016 projection scale, to reflect mortality improvements 

through the valuation date and to anticipate further improvements in life expectancy in the future.

 Withdrawal and retirement rates were updated based on a study of recent plan experience.

 The administrative expense assumption was increased from $175,000 to $200,000, payable midyear, to reflect anticipated plan experience. 

 Apprentices are now assumed to become Journeyman after three years of service. Previously 

apprentices were assumed to remain apprentices throughout their employment. 

These assumption changes increased the Plan’s present value of accrued benefits by about $5 million. 

Exhibit 17 Application Page 293





Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Introduction 

Exhibit 17 Application Page 299
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 8 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

INTRODUCTION 

The purpose of this actuarial valuation is to measure the funded status of the Plan as of January 1, 2017, to 

calculate the contribution requirements under ERISA for the 2017 Plan Year, and to determine the Plan’s 

unfunded vested benefits for withdrawal liability purposes as of December 31, 2016. 

In Section 3, we summarize the Plan’s market value of assets and trust fund activity and determine the 

actuarial value of assets. 

In Section 4, we determine the appropriate charges and credits to the ERISA Minimum Funding Standard 

Account for the Plan Year ending December 31, 2017, and calculate the minimum required contribution at the 

end of 2017. We also calculate the maximum tax-deductible contribution for the Plan Year ending 

December 31, 2017. 

In Section 5, we test the Plan’s Funded Status by comparing the Plan’s assets to the actuarial present value 

of accumulated plan benefits, computed in accordance with FASB ASC Topic 960. We also summarize the 

Plan’s present value of vested benefits and calculate the Plan’s unfunded vested benefits used for withdrawal 

liability. 

In Section 6, we present a summary of the Plan’s historical valuation results and project the benefit payments 

expected to be made to the Plan’s current participants. 

The appendices present a summary of the Plan, participant statistics (active, vested inactive, and retired), a 

description of the actuarial cost method used to value the Plan’s liabilities, and a summary of our actuarial 

assumptions. 

Exhibit 17 Application Page 300
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Trust Fund Activity 

Exhibit 17 Application Page 301
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 9 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

TRUST FUND ACTIVITY 

In this section, we show the present status of the Plan’s trust fund, trust activity over the past year, and the 

determination of the Plan’s actuarial value of assets. 

Exhibit 3.1 lists the type of assets held and their market value. 

Exhibit 3.2 summarizes the Fund’s activity during the past year. 

Exhibit 3.3 develops the actuarial value of Plan assets as of December 31, 2016. 

Exhibit 3.4 shows the historical investment return for the Trust since 2004. 

Exhibit 17 Application Page 302
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 10 

Plasterers Local #82 Pension Fund 

Exhibit 3.1 

PLASTERERS LOCAL #82 PENSION FUND 

MARKET VALUE OF ASSETS 

(As of December 31, 2016) 

CASH $ 557,208 

INVESTMENTS 

Investment Contract with Insurance Company $ 2,745,391 

Investment Contracts for “Floored” Retirees 2,490,902 

Common Stocks 2,075,374 

Washington Capital Joint Master Trust 4,285,796 

Registered Investment Funds 6,225,932 

 17,823,395 

RECEIVABLES AND LIABILITIES 

Accounts Payable $ (48,060) 

Accrued Interest Receivable 2,232 

Contributions Receivable 133,704 

Prepaid Expenses 2,656 

 90,532 

 

MARKET VALUE OF ASSETS $ 18,471,135 

Exhibit 17 Application Page 303
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 11 

Plasterers Local #82 Pension Fund 

Exhibit 3.2 

PLASTERERS LOCAL #82 PENSION FUND 

RECEIPTS AND DISBURSEMENTS 

(Year Ended December 31, 2016) 

RECEIPTS 

 Net Employer Contributions $ 1,125,460 

 Interest 555 

 Dividends 223,509 

 Net Appreciation in Fair Value of Investments 766,126 

 Change in Value of Assets Held for “Floored” Retirees (187,265) 

 Income from Investment with Insurance Company 514,072 

 Miscellaneous 820 

 Total Receipts $ 2,443,277 

 

DISBURSEMENTS 

 Benefit Payments $ 2,178,929 

 Operating Expenses 204,458 

 Investment Expenses 112,709 

 Total Disbursements $ 2,496,096 

CHANGE IN NET ASSETS 

 Receipts Minus Disbursements $ (52,819) 

 Market Value of Net Assets December 31, 2015 18,523,954 

 Market Value of Net Assets December 31, 2016 $ 18,471,135 

Exhibit 17 Application Page 304
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 12 

Plasterers Local #82 Pension Fund 

Exhibit 3.3 

PLASTERERS LOCAL #82 PENSION FUND 

DEVELOPMENT OF THE ACTUARIAL VALUE OF ASSETS 

(As of January 1, 2017) 

Asset Reconciliation 

 (1) (2) (3) (4) (5) (6) (7) 

Year 

Market Value 

of Assets 

beginning 

of year Contributions 

Benefit 

Payments 

Operating 

Expenses 

Cash Flow 

(2)–(3)–(4) 

Actual 

Investment 

Income 

Market Value of 

Assets End of 

Year 

(1)+(5)+(6) 

2016 $ 18,523,954 $1,125,460 $2,178,929 $204,458 $(1,257,927) $1,205,108 $18,471,135 

2015 19,611,319 1,006,855 2,067,499 237,993 (1,298,637) 211,272 18,523,954 

2014 19,627,986 1,220,364 2,076,047 166,495 (1,022,178) 1,005,511 19,611,319 

2008 25,840,460 810,789 1,456,891 100,756 (746,858) (6,440,225) 18,653,377 

 

Actuarial Value of Assets 

Year 

Actual Investment 

Rate of Return 

Actual 

Investment Return 

Expected 

Investment Return 

Difference between 

Actual and Expected 

2016 6.7% $ 1,205,108 $ 1,240,852 $ (35,744) 

2015 1.1% 211,272 1,321,811 (1,110,539) 

2014 5.3% 1,005,511 1,428,303 (422,792) 

2008 (25.3)% (6,440,225) 1,906,552 (8,346,777) 

 

Market Value of Assets on January 1, 2017 $ 18,471,135 

 Add 75% of 2016 loss 26,808 

 Add 50% of 2015 loss 555,270 

 Add 25% of 2014 loss 105,698 

 Add 10% of 2008 loss* 834,678 

Preliminary Actuarial Value of Assets on January 1, 2017 $ 19,993,589 

Preliminary Actuarial Value as a Percentage of Market Value 108% 

Actuarial Value of Assets (limited to 80-120% of Market Value) $ 19,993,589 

* Investment loss for 2008 is recognized over 10 years as elected under the Pension Relief Act of 2010. 

 

Exhibit 17 Application Page 305

Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Contribution Requirements 

Exhibit 17 Application Page 307
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 14 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

CONTRIBUTION REQUIREMENTS 

In this section we determine the appropriate charges and credits to the ERISA Minimum Funding Standard 

Account and calculate the minimum required contribution under the Internal Revenue Code for the upcoming 

plan year. We also determine the maximum tax-deductible limit under the Internal Revenue Code for the 

upcoming plan year. Under the law, an Enrolled Actuary must calculate costs using an approved actuarial 

cost method and actuarial assumptions which are individually reasonable and, in combination, are his best 

estimate of future Plan experience. Our actuarial cost method and assumptions are fully explained in 

Appendix C. 

Exhibit 4.1 shows the changes in the Plan’s Unfunded Actuarial Liability from January 1, 2016 to January 1, 

2017. 

Exhibit 4.2 balances the ongoing Plan requirements with its resources. The Plan’s requirements consist of 

the Actuarial Present Value of Accrued Plan benefits. Plan resources consist of plan assets and expected 

future contributions to pay off the Plan’s Unfunded Actuarial Liability. 

Exhibit 4.3 calculates the normal cost for the year. The Plan’s normal cost consists of the cost of benefits 

expected to be earned in the next year, plus an allowance for administrative expenses. 

Exhibit 4.4 develops the Plan’s Funding Standard Account and the minimum contribution for 2017. 

Exhibit 4.5 develops the maximum tax-deductible contribution for the 2017 plan year. 

Exhibit 17 Application Page 308
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 15 

Plasterers Local #82 Pension Fund 

Exhibit 4.1 

PLASTERERS LOCAL #82 PENSION FUND 

UNFUNDED ACTUARIAL LIABILITY 

(As of January 1, 2017) 

 (1) Unfunded Actuarial Liability 1/1/16 $ 12,807,450 

 (2) Normal Cost for the 2016 Plan Year $ 362,812 

 (3) Interest at 7.0% on (1) and (2) to 1/1/17 $ 921,918 

 (4) Employer Contributions with Interest at 7.0% from dates paid to 1/1/17 $ 1,153,054 

 (5) Expected Unfunded Actuarial Liability 1/1/17 

(1) + (2) + (3) - (4) $ 12,939,126 

 (6) Experience (Gain)/Loss 

 Investment (Gain)/Loss $ 1,091,541 

 Demographic (Gain)/Loss 134,509 1,226,050 

 (7) Plan Change 0 

 (8) Assumption Change 5,027,075 

 (9) Unfunded Actuarial Liability 1/1/17 

(5) + (6) + (7) + (8) $ 19,192,251 

Exhibit 17 Application Page 309
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 16 

Plasterers Local #82 Pension Fund 

Exhibit 4.2 

PLASTERERS LOCAL #82 PENSION FUND 

ACTUARIAL BALANCE SHEET 

(As of January 1, 2017) 

REQUIREMENTS 

Present Value of Accrued Benefits 

Retirees and Beneficiaries $ 23,173,715 

Vested Inactive Participants 7,614,995 

Active Participants: 

Retirement $ 6,551,155 

Death 58,353 

Vested Termination 1,787,622 

Total Active Participants 8,397,130 

TOTAL REQUIREMENTS $ 39,185,840 

RESOURCES

Actuarial Value of Assets $ 19,993,589 

Unfunded Actuarial Liability 19,192,251 

TOTAL RESOURCES $ 39,185,840 

Exhibit 17 Application Page 310
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 17 

Plasterers Local #82 Pension Fund 

Exhibit 4.3 

PLASTERERS LOCAL #82 PENSION FUND 

DEVELOPMENT OF NORMAL COST 

(As of January 1, 2017) 

(1) Unit Credit Normal Cost 

 Retirement $ 182,484 

 Death 1,644 

 Vested Termination 73,187 

 Total $ 257,315 

(2) Estimated Administrative Expenses 

$200,000 ÷ 1.0625 0.5 

 

 194,029 

(3) Total Normal Cost (1) + (2) $ 451,344 

 

Exhibit 17 Application Page 311
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 18 

Plasterers Local #82 Pension Fund 

Exhibit 4.4 

PLASTERERS LOCAL #82 PENSION FUND 

DEVELOPMENT OF MINIMUM FUNDING STANDARD ACCOUNT 

Funding Standard Account for the Plan Year Ending December 31, 2016 

(1) Credits 

 (a) Previous Year Credit Balance January 1, 2016 $ 872,488 

 (b) Amortization Credits 503,607 

 (c) Employer Contributions 1,125,460 

 (d) Interest at 7.0% on (a), (b) and (c) 123,921 

 (e) Total Credits $ 2,625,476 

(2) Charges 

 (a) Normal Cost (including expenses) $ 362,812 

 (b) Amortization Charges 2,015,225 

 (c) Interest at 7.0% on (a) and (b) 166,463 

 (d) Total Charges $ 2,544,500 

(3) Credit Balance (Accumulated Funding Deficiency) 

December 31, 2016 (1e) – (2d) $ 80,976 

Minimum Required Contribution for Plan Year Ending December 31, 2017 

(1) Normal Cost (including expenses) $ 451,344 

(2) Amortization Charges Less Amortization Credits 2,050,846 

(3) Total Charges (1)+(2) $ 2,502,190 

(4) Credit Balance January 1, 2017 $ 80,976 

(5) Full Funding Credit $ 0 

(6) Minimum Required Contribution, December 31, 2017 

[ (3) – (4) ] x 1.0625  (5) $ 2,572,540 

(7) Minimum Contribution to Maintain Credit Balance, Middle of Year 

[(4) + (6)] ÷ 1.03125 $ 2,573,106 

Exhibit 17 Application Page 312
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 19 

Plasterers Local #82 Pension Fund 

Exhibit 4.4 

(Continued) 

AMORTIZATION CHARGES AND CREDITS 

Amortization Charges 

 

Date 

Established Type

Remaining 

Period

Remaining 

Base

Minimum 

Payment

1/1/78 Benefit Change 1 29,630 $ 29,630 $ 

1/1/89 Benefit Change 2 5,335 2,748 

1/1/90 Benefit Change 3 164,205 58,085 

1/1/91 Benefit Change 4 138,255 37,767 

1/1/94 Benefit Change 7 15,520 2,640 

1/1/96 Benefit Change 9 300,334 42,012 

1/1/96 Benefit Change 9 1,913 268 

1/1/97 Assumption Change 10 11,343 1,468 

1/1/99 Benefit Change 12 401,531 45,696 

1/1/01 Benefit Change 14 169,436 17,423 

1/1/02 Benefit Change 15 6,777 668 

1/1/04 Benefit Change 17 152,098 13,910 

1/1/06 Assumption Change 19 674,689 58,027 

1/1/06 Plan Change 19 1,386,627 119,257 

1/1/09 Assumption Change 7 71,450 12,154 

1/1/09 Experience Loss 7 2,780,522 472,963 

1/1/11 Experience Loss 9 1,751,341 244,983 

1/1/12 Assumption Change 10 87,310 11,297 

1/1/12 Experience Loss 10 2,149,978 278,196 

1/1/13 Assumption Change 11 50,931 6,156 

1/1/13 Experience Loss 11 75,852 9,168 

1/1/14 Assumption Change 12 54,374 6,188 

1/1/15 Experience Loss 13 1,232,775 132,984 

1/1/15 Assumption Change 13 1,546,284 166,803 

1/1/16 Experience Loss 14 1,352,571 139,084 

1/1/16 Assumption Change 14 230,689 23,722 

1/1/17 Experience Loss 15 1,226,050 120,760 

1/1/17 Assumption Change 15 5,027,075 495,143

$ 2,549,200 21,094,895 $ 

As of January 1, 2017

Exhibit 17 Application Page 313
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 20 

Plasterers Local #82 Pension Fund 

Exhibit 4.4 

(Continued) 

AMORTIZATION CHARGES AND CREDITS 

Amortization Credits 

Date 

Established Type

Remaining 

Period

Remaining 

Base

Minimum 

Payment

1/1/88 Cost Method Change 1 26,888 $ 26,888 $ 

1/1/92 Reestablish Liabilities 5 241,517 54,330 

1/1/93 Assumption Change 6 40,539 7,820 

1/1/08 Experience Gain 6 236,391 45,601 

1/1/09 Asset Method Change 2 485,840 250,281 

1/1/10 Experience Gain 8 535,424 81,955 

8/1/10 Plan Change 8.583 78,564 11,392 

1/1/14 Experience Gain 12 68,876 7,838 

1/1/14 Plan Change 12 107,629 12,249

$ 498,354 1,821,668 $ 

As of January 1, 2017

Exhibit 17 Application Page 314
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 21 

Plasterers Local #82 Pension Fund 

Exhibit 4.5 

PLASTERERS LOCAL #82 PENSION FUND 

MAXIMUM TAX–DEDUCTIBLE CONTRIBUTION 

(Plan Year Ending December 31, 2017) 

Maximum Tax-Deductible Contribution 

(Lesser of I and II below, but not less than III) $ 63,832,538 

I. 10-Year Amortization Limitation 

 (1) Normal Cost as of January 1, 2017 $ 451,344 

 (2) Fresh Start Amortization of Unfunded Actuarial Liability 2,483,374 

 (3) Interest on (1) and (2) to December 31, 2017 183,420 

 (4) Maximum Contribution for the 2017 Plan Year 

 (1) + (2) + (3) $ 3,118,138 

II. Full Funding Limitation 

 A. Full Funding Limitation before Floor 

 (1) Unit Credit Actuarial Liability as of January 1, 2017 $ 39,185,840 

 (2) Unit Credit Normal Cost as of January 1, 2017 451,344 

 (3) Test Value of Assets 18,471,135 

 (4) Full Funding Limitation before Floor 

 [(1) + (2)  (3)] × 1.0625, but not less than zero $ 22,488,927 

 B. Full Funding Limitation Floor 

 (1) Current Liability as of December 31, 2017 

 (calculated using 3.05% interest rate assumption) $ 58,732,251 

 (2) 90% of Current Liability 52,859,026 

 (3) Expected Actuarial Value of Assets at Year End 18,392,613 

 (4) Full Funding Limitation Floor 

 (2)  (3), but not less than zero $ 34,466,413 

C. Full Funding Limitation 

 Greater of A and B $ 34,466,413 

III. Unfunded 140% of Current Liability 

 (1) Current Liability as of December 31, 2017 

 (calculated using a 3.05% interest rate assumption) $ 58,732,251 

 (2) 140% of Current Liability 82,225,151 

 (3) Expected Actuarial Value of Assets at Year End 18,392,613 

 (4) Unfunded 140% of Current Liability 

 (2)  (3), but not less than zero $ 63,832,538 

Exhibit 17 Application Page 315
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 22 

Plasterers Local #82 Pension Fund 

Exhibit 4.5 

(Continued) 

The Plan’s current liability is developed in the following table. Note that current liability is determined using a 

3.05% interest assumption for all liabilities. As required, the 3.05% interest assumption is within the required 

corridor of the corporate bond rate published by the IRS. 

Current Liability 

Current Liability, Beginning of Year

Retirees and Beneficiaries $ 31,020,736 

Vested Inactive Participants 13,345,954 

Active Participants – Vested Benefits 13,373,162 

Active Participants – Nonvested Benefits 1,291,707 

Total $ 59,031,559 

Changes Expected During 2017 Plan Year

Accrual of Benefits $ 491,314 

Expected Release of Liability (2,566,924) 

Interest 1,776,302 

Total $ (299,308) 

Current Liability, End of Year $ 58,732,251 

 

Exhibit 17 Application Page 316
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Funded Status 

Exhibit 17 Application Page 317
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 23 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

FUNDED STATUS 

In this section, we test the Plan’s funded status by comparing the Fund’s assets to the actuarial present value 

of accumulated plan benefits and actuarial present value of vested benefits. 

Exhibit 5.1 compares the Plan’s assets to the actuarial present value of accumulated plan benefits as of 

December 31, 2016. 

Exhibit 5.2 details the change in the actuarial present value of accumulated plan benefits from December 31, 

2015 to December 31, 2016. 

Exhibit 5.3 shows the Plan’s liability for withdrawal liability purposes. Employers withdrawing from the Plan 

during the 2017 plan year will be assessed a portion of this liability. 

Exhibit 17 Application Page 318
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 24 

Plasterers Local #82 Pension Fund 

Exhibit 5.1 

PLASTERERS LOCAL #82 PENSION FUND 

STATEMENT OF ACTUARIAL PRESENT VALUE OF 

ACCUMULATED PLAN BENEFITS 

FASB ASC Topic 960 

December 31, 2015 December 31, 2016 

VESTED BENEFITS 

Participants Currently Receiving Payments $ 19,849,376 $ 23,173,715 

Vested Inactive Participants 6,594,139 7,614,995 

Active Participants 7,173,722 7,637,880 

Total $ 33,617,237 $ 38,426,590 

NONVESTED BENEFITS 

Vested Inactive Participants $ 0 $ 0 

Active Participants 95,156 759,250 

Total $ 95,156 $ 759,250 

ACTUARIAL PRESENT VALUE OF 

ACCUMULATED PLAN BENEFITS $ 33,712,393 $ 39,185,840 

ASSETS 

Actuarial Value of Assets (AVA) $ 20,904,943 $ 19,993,589 

Market Value of Assets (MVA) $ 18,523,954 $ 18,471,135 

FUNDING RATIOS 

Ratio of AVA to Vested Benefits 62% 52% 

Ratio of MVA to Vested Benefits 55% 48% 

Ratio of AVA to Accumulated Plan Benefits 62% 51% 

Ratio of MVA to Accumulated Plan Benefits 55% 47% 

 

Exhibit 17 Application Page 319
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 25 

Plasterers Local #82 Pension Fund 

Exhibit 5.2 

PLASTERERS LOCAL #82 PENSION FUND 

STATEMENT OF CHANGES IN ACTUARIAL PRESENT VALUE OF 

ACCUMULATED PLAN BENEFITS 

Actuarial Present Value of Accumulated Plan Benefits at 

December 31, 2015 

 

 $ 33,712,393 

Increase (Decrease) during the year attributable to: 

 Benefits Accumulated $ 341,696 

 Increase for Interest due to the Decrease in the 

 Discount Period 2,283,605 

 Benefits Paid (2,178,929) 

 Assumption Changes 5,027,075 

 Plan Amendments 0 

 Net Increase 5,473,447 

Actuarial Present Value of Accumulated Plan Benefits at 

December 31, 2016 

 

 $ 39,185,840 

Exhibit 17 Application Page 320
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 26 

Plasterers Local #82 Pension Fund 

Exhibit 5.3 

PLASTERERS LOCAL #82 PENSION FUND 

WITHDRAWAL LIABILITY 

(December 31, 2016) 

(1) Present Value of Vested Benefits 

Retirees $ 23,173,715 

Vested Inactive Participants 7,614,995 

Active Participants 

Retirement $ 2,068,106 

Death 56,968 

Vested Withdrawal 5,512,806 7,637,880 

 Total Present Value of Vested Benefits $ 38,426,590 

(2) Market Value of Assets 18,471,135 

(3) Unfunded Vested Benefit Liability (1) – (2) $ 19,955,455 

(4) Unamortized Balance of the Value of Reduced Nonforfeitable Benefits* 143,975 

(5) Total Liability for Withdrawal Liability Purposes (3) + (4), but not less than zero $ 20,099,429 

* By law, certain benefit reductions under the Rehabilitation Plan must be disregarded in determining 

withdrawal liability. Under PBGC Technical Update 10-3, the value of these benefit reductions as of 

December 31, 2010 ($130,431) and December 31, 2013 ($56,737) were set up as separate pools to be 

written down over 15 years. Withdrawing employers will be assessed a portion of the unamortized 

balance in addition to a portion of the Plan’s unfunded vested benefits. 

Exhibit 17 Application Page 321
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

History and Projections 

Exhibit 17 Application Page 322
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 27 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

HISTORY AND PROJECTIONS 

Exhibit 6.1 shows the Plan’s historical progress in funding accrued benefits. 

Exhibit 6.2 shows some information on the participants included in the last several valuations. 

Exhibit 6.3 shows the projected benefit payments expected to be made based on the actuarial assumptions 

detailed in this report. This information can be useful for the investment manager in planning future liquidity 

requirements. 

 

Exhibit 17 Application Page 323



Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Appendix A 

Summary of Principal Plan Provisions 

Exhibit 17 Application Page 327
Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2017 Actuarial Valuation 31 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

SUMMARY OF PRINCIPAL PLAN PROVISIONS 

(January 1, 2017)

Plan Identification 

Employer Identification Number (EIN): 93-6075453 

Plan Number (PN): 001 

Effective Date 

The effective date of the original Trust was January 1, 1962. The plan was last restated effective January 1, 

2014. 

Eligibility 

An employee becomes an Active Participant on the earliest date on which he is an eligible employee. For 

these purposes, an eligible employee is any employee of an employer whose employment is represented for 

collective bargaining by the Operative Plasterers and Cement Masons International Association, Local Union 

No. 82. 

Accrual Service 

(a) Future Accrual Service. For service on or after January 1, 1962 and before January 1, 1976, one year 

of Future Accrual Service is earned for each Plan Year in which an Active Participant has at least 400 

Hours of Service. 

For service on or after January 1, 1976, one year of Future Accrual Service is earned for each Plan 

Year in which an Active Participant has at least 400 Hours of Service. However, during the Plan Year 

in which the Participant’s Normal Retirement Date occurs, the Participant will earn a year of Future 

Accrual Service if they are credited with at least one Hour of Service. 

(b) Past Accrual Service. Service prior to January 1, 1962 is credited only for a Participant who became 

an Active Participant under the Prior Plan on January 1, 1962 or the date the Participant’s local union 

entered the Prior Plan, if later, equal to the number of years (not to exceed 10) of service in jobs 

covered by the collective bargaining agreement with the Union or membership in a participating local 

Union before January 1, 1962, or the date the Participant’s local Union entered the Prior Plan, if later. 

An employee’s Past Accrual Service shall not exceed their Future Accrual Service. 

Normal Retirement Benefits 

(a) Eligibility 

Participants are eligible for normal retirement at the later of age 62 or two years after the date of active 

participation. 

(b) Benefit Amount 

The monthly normal retirement benefit is equal to the Participant’s vested percentage times the sum of 

(1), (2), (3), (4), (5), (6), (7) and (8) as follows: 

 

Exhibit 17 Application Page 328

Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2017 Actuarial Valuation 33 

Plasterers Local #82 Pension Fund 

Retirement 

Age 

% of 

Accrued Benefit 

62 100% 

61 97% 

60 94% 

59 91% 

58 88% 

57 85% 

(2) If a Participant does not meet the Tier 1 criteria, the Participant's normal retirement benefit will be 

multiplied by the appropriate factor from the table below. 

Retirement 

Age 

% of 

Accrued Benefit 

62 100.0% 

61 90.7% 

60 82.3% 

59 74.9% 

58 68.2% 

57 62.2% 

(c) Recency Test 

The Recency Test is satisfied if the Participant completes at least 400 hours of service under the Trust 

in the calendar year of retirement or the calendar year prior to retirement, or if the Participant 

completes at least 600 hours of service in two of the last three calendar years prior to retirement. 

(d) Form of Benefit 

The form of benefit is the same as that payable on normal retirement. 

Optional Forms of Payment 

Retirement benefits may be paid in one of the following forms of payment: 

a) A monthly income for the life of the Participant. No benefits are paid after the Participant’s death. 

b) A monthly income for the life of the Participant. Upon the Participant’s death, 50%, 66 2/3%, 75% or 

100% of the original benefit will be paid monthly to the Participant’s surviving beneficiary for their life. 

c) A monthly income for the life of the Participant with 60, 120 or 180 payments guaranteed. 

Disability Retirement 

(a) Eligibility 

Active Participants are eligible for disability retirement after completion of 15 years of vesting service if 

they become totally and permanently disabled within 24 months of active employment under the Plan. 

Participants are deemed to be disabled if they meet the following requirements: 

i) The Participant is disabled as a result of sickness or injury to the extent that they are completely 

prevented from performing any work, engaging in any occupation for wage or profit, 

ii) The Participant has been continuously disabled for 6 months, as determined by the Trustees, and 

iii) The Participant is eligible for a disability benefit under Title II of the Federal Social Security Act. 

Exhibit 17 Application Page 330
Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2017 Actuarial Valuation 34 

Plasterers Local #82 Pension Fund 

(b) Benefit Amount 

The monthly benefit is equal to 50% of the Participant’s retirement benefit accrued on his date of 

disability. The maximum number of retroactive benefit payments for a disability claim is 12 months. 

(c) Form of Benefit 

Benefits are payable to the Participant prior to normal retirement age as long as the participant remains 

disabled. Once a disabled retiree reaches normal retirement age, the Participant will retire and receive 

a normal retirement benefit. 

Vested Benefits 

A Participant who earns an Hour of Service after January 1, 1999 becomes 100% vested upon completion of 

five years of vesting service. 

An active Participant also becomes 100% vested when he reaches his Normal Retirement Age. 

Death Benefits 

The benefits described below are payable prior to a Participant’s annuity starting date. After the Participant’s 

annuity starting date, death benefits will be based on the Participant’s form of payment. 

Qualified Preretirement Survivor Annuity 

A Qualified Preretirement Survivor Annuity is payable if the following requirements are met: 

1) The Participant is survived by a spouse to whom they were continuously married throughout the oneyear period ending on the Participant’s date of death. 

2) The Participant’s Vesting Percentage at their date of death was greater than zero. 

3) The Participant has not elected to waive this benefit in favor of the single sum death benefit described 

below. 

The Qualified Preretirement Survivor Annuity benefit is a straight life annuity payable to the Participant’s 

surviving spouse, payable at the Participant’s earliest retirement age. The amount of this benefit will be 

determined as if the Participant terminated employment on the date of death and survived to retirement age, 

retired under a 50% Joint and Survivor Annuity and then died the next day. 

60-Month Survivor Annuity 

In lieu of the Qualified Preretirement Survivor Annuity, a Participant’s surviving spouse may choose to receive 

60 monthly benefit payments of the Participant’s accrued normal retirement benefit as of the date of death. 

When in critical status, this benefit is converted into an actuarially equivalent life annuity. 

Single Sum Death Benefit 

If the requirements for the Qualified Preretirement Survivor Annuity have not been met and the Participant 

was under active employment within the last 12 months under the plan, a single sum death benefit equal to 

the lesser of $15,000 or the aggregate amount of employer contributions made on the Participant’s behalf is 

payable to the Participant’s designated beneficiary. 

While the Plan is in critical status, the benefit may not be paid as a lump sum. 

Exhibit 17 Application Page 331
Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2017 Actuarial Valuation 35 

Plasterers Local #82 Pension Fund 

Changes from Prior Valuation 

The bargaining parties adopted a collective bargaining agreement that included additional inside the formula 

contributions of $0.10 per hour in July 2016. 

Exhibit 17 Application Page 332
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Appendix B 

Summary of Employee Data 

Exhibit 17 Application Page 333
Milliman Actuarial Valuation Appendix B - Summary of Employee Data 

January 1, 2017 Actuarial Valuation 36 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

SUMMARY OF EMPLOYEE DATA 

The valuation was based on participant data provided by the plan administrator. 

This data is an integral part of the actuarial valuation of a pension plan. All of the calculations made in the 

valuation are based upon this data. This section outlines the data for active, vested inactive and retired 

participants. 

Exhibit 1 is a distribution of active participants as of January 1, 2017 by age and service. For valuation 

purposes, active participants are those employees who worked at least 400 hours during 2016. Also included 

are new hires whose annualized hours meet or exceed 400. 

Exhibit 2 is a distribution of vested inactive participants. 

Exhibit 3 is a distribution of retirees and beneficiaries currently receiving benefits from the Trust. 

Exhibit 17 Application Page 334
Milliman Actuarial Valuation Appendix B - Su

January 1, 2017 Actuarial Valuation Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

DISTRIBUTION OF ACTIVE PARTICIPANTS 

(January 1, 2017) 

Years of Vesting Service

Under 1 1 to 4 5 to 9 10 to 14 15 to 19 

Age Group Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg. 

Under 25 0 0 11 493 0 0 0 0 0 

25 to 29 0 0 2 853 1 1,771 0 0 0 

30 to 34 0 0 3 535 0 0 1 1,653 0 

35 to 39 0 0 6 751 4 1,397 4 1,653 3 1

40 to 44 0 0 5 432 3 1,131 2 1,419 2 1

45 to 49 0 0 3 909 0 0 1 1,742 2 1

50 to 54 0 0 2 1,100 1 1,326 2 1,059 3 155 to 59 0 0 1 1,079 0 0 1 1,872 1 

60 to 64 0 0 0 0 0 0 3 971 0 

65 to 69 0 0 0 0 0 0 1 1,128 0 

70 & Over 0 0 0 0 0 0 0 0 0 

Totals 0 0 33 648 9 1,341 15 1,392 11 1

25 to 29 30 to 34 35 to 39 40 & Up All Year

Age Group Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg

Under 25 0 0 0 0 0 0 0 0 11 

25 to 29 0 0 0 0 0 0 0 0 3 130 to 34 0 0 0 0 0 0 0 0 4 

35 to 39 0 0 0 0 0 0 0 0 17 140 to 44 0 0 0 0 0 0 0 0 13 

45 to 49 3 1,752 0 0 0 0 0 0 11 150 to 54 2 1,664 3 1,780 0 0 0 0 16 155 to 59 0 0 0 0 1 1,979 0 0 7 1

60 to 64 0 0 0 0 2 1,474 0 0 5 1

65 to 69 0 0 0 0 0 0 0 0 1 1

70 & Over 0 0 0 0 0 0 0 0 0 

Totals 5 1,717 3 1,780 3 1,642 0 0 88 1
Milliman Actuarial Valuation Appendix B - Summary of Employee Data 

January 1, 2017 Actuarial Valuation 38 

Plasterers Local #82 Pension Fund 

Appendix B-2 

PLASTERERS LOCAL #82 PENSION FUND 

DISTRIBUTION OF VESTED INACTIVE PARTICIPANTS 

(As of January 1, 2017) 

Age 

Group Number 

Total 

Estimated 

Monthly Normal 

Retirement Benefit 

Under 25 0 $ 0 

25 – 29 1 163 

30 – 34 3 1,374 

35 – 39 5 4,532 

40 – 44 11 12,520 

45 – 49 23 22,584 

50 – 54 21 25,127 

55 – 59 20 20,236 

60 – 64 12 11,901 

65 – 69 2 556 

70 & Over 3 1,041 

Total 101 $ 100,034 

Average $ 990 

Exhibit 17 Application Page 336
Milliman Actuarial Valuation Appendix B - Summary of Employee Data 

January 1, 2017 Actuarial Valuation 39 

Plasterers Local #82 Pension Fund 

Appendix B-3 

PLASTERERS LOCAL #82 PENSION FUND 

SUMMARY OF RETIREES AND BENEFICIARIES 

(As of January 1, 2017) 

Age 

Group Number 

Total 

Monthly Benefit 

Under 50 3 $ 2,732 

50 – 54 0 0 

55 – 59 12 17,696 

60 – 64 30 42,250 

65 – 69 27 51,372 

70 – 74 12 23,262 

75 – 79 17 24,963 

80 – 84 10 9,801 

85 – 89 9 7,499 

90 – 94 8 5,308 

95 & Over 0 0 

Total 128 $ 184,883 

Average $ 1,444 

Exhibit 17 Application Page 337
Milliman Actuarial Valuation 

January 1, 2017 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Appendix C 

Actuarial Assumptions and Methods 

Exhibit 17 Application Page 338



Milliman Actuarial Valuation 

November 2016 

PLASTERERS LOCAL #82 PENSION FUND 

January 1, 2016 Actuarial Valuation 

Prepared by: 

Milliman, Inc. 

Ladd E. Preppernau, FSA, EA, MAAA 

Principal and Consulting Actuary 

Casey B. Baldwin, ASA, EA, MAAA 

Consulting Actuary 

John Q. Rowland 

Actuarial Analyst 

Milliman, Inc. 

111 SW Fifth Avenue, Suite 3700 

Portland OR 97204-3654 

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

Exhibit 17 Application Page 342
j:\ppp\reports\v16.docx 

Offices in Principal Cities Worldwide 

111 SW Fifth Avenue 

Suite 3700 

Portland, OR 97204 

USA 

Tel +1 503 227 0634 

Fax +1 503 227 7956 

milliman.com 

November 3, 2016 

Trustees 

Plasterers Local #82 Pension Fund 

Dear Trustees: 

As requested, we performed an actuarial valuation of the Plasterers Local #82 Pension 

Fund as of January 1, 2016, for the plan year ending December 31, 2016. Our findings are 

set forth in this actuary’s report. 

In preparing this report, we relied, without audit, on information supplied by the 

administrative office and the financial statements prepared by the Plan’s independent 

accountant. This information includes, but is not limited to, Plan documents and provisions, 

employee data, and financial information. The financial information includes certain 

adjustments to the initial audited financial statements, as instructed by the Plan’s auditor. 

In our examination of these data, we have found them reasonably consistent and 

comparable with data used for other purposes. The valuation results depend on the 

integrity of this information. If any of this information is inaccurate or incomplete our results 

may be different and our calculations may need to be revised. 

For actuarial requirements under ERISA, all costs, liabilities, rates of interest, and other 

factors under the Plan (except when mandated directly by the Internal Revenue Code and 

its regulations) have been determined on the basis of actuarial assumptions and methods 

which are individually reasonable (taking into account the experience of the Plan and 

reasonable expectations) and which, in combination, offer our best estimate of anticipated 

experience under the Plan. We completed this actuarial valuation in accordance with our 

understanding of IRS minimum funding requirements as amended by subsequent 

legislation, and reflecting all proposed regulations and guidance issued to date. 

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to many factors, including: 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 our assignment, we did not perform an analysis of the potential range of future 

measurements. 

Actuarial computations under ERISA are to determine the minimum required and maximum 

allowable funding amounts for an ongoing plan. The calculations in the enclosed report 

have been made on a basis consistent with our understanding of ERISA. For actuarial 

requirements under FASB ASC Topic 960, all liabilities, rates of interest, and other factors 

under the Plan have been determined on the basis of actuarial assumptions and methods 

Exhibit 17 Application Page 343

Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

TABLE OF CONTENTS 

 Page

1. Summary of Valuation Results ................................................................................................... 1 

2. Introduction .................................................................................................................................. 8 

3. Trust Fund Activity ...................................................................................................................... 9 

 Exhibit 3.1 – Market Value of Assets ........................................................................................ 10 

 Exhibit 3.2 – Receipts and Disbursements ............................................................................... 11 

 Exhibit 3.3 – Development of the Actuarial Value of Assets ..................................................... 12 

 Exhibit 3.4 – Historical Investment Return ................................................................................ 13

4. Contribution Requirements ...................................................................................................... 14 

 Exhibit 4.1 – Unfunded Actuarial Liability ................................................................................. 15 

 Exhibit 4.2 – Actuarial Balance Sheet ....................................................................................... 16 

 Exhibit 4.3 – Development of Normal Cost ............................................................................... 17 

 Exhibit 4.4 – Development of Minimum Funding Standard Account ........................................ 18 

 Exhibit 4.5 – Maximum Tax-Deductible Contribution ................................................................ 21 

5. Funded Status ............................................................................................................................ 23 

 Exhibit 5.1 – Statement of Actuarial Present Value of Accumulated Plan Benefits .................. 24 

 Exhibit 5.2 – Statement of Changes in Actuarial Present Value of Accumulated 

Plan Benefits ........................................................................................................ 25 

 Exhibit 5.3 – Withdrawal Liability .............................................................................................. 26 

6. History and Projections ............................................................................................................. 27 

 Exhibit 6.1 – Historical Funding Progress ................................................................................. 28

 Exhibit 6.2 – Historical Participant Statistics ............................................................................. 29 

 Exhibit 6.3 – Projected Benefit Payouts .................................................................................... 30 

APPENDICES

 A – Summary of Principal Plan Provisions ............................................................................... 31 

 B – Summary of Employee Data ............................................................................................... 36 

 Exhibit B.1 – Distribution of Active Participants ................................................................. 37 

 Exhibit B.2 – Distribution of Vested Inactive Participants ................................................... 38 

 Exhibit B.3 – Summary of Retirees and Beneficiaries ........................................................ 39 

 C – Actuarial Assumptions and Methods .................................................................................. 40 

Exhibit 17 Application Page 345
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Summary of Valuation Results 

Exhibit 17 Application Page 346
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 1 

Plasterers Local #82 Pension Fund 

A. Overview of Results 

Actuarial Valuation 

for Plan Year Beginning 

January 1, 2015 January 1, 2016 

Assets 

Market Value of Assets $19,611,319 $ 18,523,954 

Actuarial Value of Assets $21,636,836 $ 20,904,943 

Investment Return for Prior Plan Year 

 Market Value of Assets 5.3% 1.1% 

 Actuarial Value of Assets 2.5% 2.7% 

Funded Status 

Present Value of Accrued Benefits $32,656,692 $ 33,712,393 

Market Value Funded Percentage 60% 55% 

Actuarial Value (PPA) Funded Percentage 66% 62% 

Withdrawal Liability 

Present Value of Vested Benefits $32,564,359 $33,617,237 

Unamortized Balance of Reduced Adjustable Benefits $162,659 $153,654 

Market Value of Assets $19,611,319 $18,523,954 

Total Withdrawal Liability $13,115,699 $15,246,937 

Credit Balance and Contribution Requirements 

Present Value of Accrued Benefits $32,656,692 $33,712,393 

Actuarial Value of Assets $21,636,836 $20,904,943 

Unfunded Actuarial Liability $11,019,856 $12,807,450 

Normal Cost $377,471 $362,812 

Credit Balance at End of Prior Year $986,818 $872,488 

Contribution Required to Preserve Credit Balance $1,111,977 $1,878,808 

Anticipated Contribution $1,184,610 $1,037,790 

Participant Data 

Active Participants 83 70 

 Average Age 43.8 45.4 

 Average Credited Service 13.1 14.9 

 Average Hours Worked 1,421 1,366 

Vested Inactive Participants 107 107 

 Average Accrued Monthly Benefit $970 $943 

Floored Retired Participants and Beneficiaries 39 36 

 Average Age 84 84 

 Average Monthly Pension $855 $808 

Non-Floored Retired Participants and Beneficiaries 83 89 

 Average Age 65 65 

 Average Monthly Pension $1,638 $1,661 

Total Participants in Valuation 312 302 

Certification Status Critical Critical

Exhibit 17 Application Page 347
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 2 

Plasterers Local #82 Pension Fund 

B. Purpose of This Report 

This report has been prepared for the Plasterers Local #82 Pension Fund (Plan) as of January 1, 2016 to: 

 Review the Plan’s funded status as of January 1, 2016. 

 Review the experience for the plan year ending December 31, 2015, including the impact of the 

Plan’s investment performance during the year and changes in plan participant demographics that 

impact liabilities. 

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

 Determine the Plan’s unfunded vested benefit liability for withdrawal liability purposes as of 

December 31, 2015 in accordance with the Multiemployer Pension Plan Amendments Act of 1980. 

 Determine the actuarial present value of accumulated plan benefits as of December 31, 2015 for 

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

C. Plan Provisions 

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

adopted during 2015 that impacted the Plan’s liabilities. 

D. Actuarial Methods and Assumptions 

Other than the assumptions mandated by the IRS, the following change was made to the methods and 

assumptions for this valuation: 

 The mortality assumption for healthy participants was updated to the RP-2014 Blue Collar mortality 

tables, set forward 2 years, and projected generationally using 50% of the ultimate rates specified in 

the MP-2014 projection scale. 

 The mortality assumption for disabled participants was updated to the RP-2014 Disabled Mortality 

Tables. 

These assumption changes increased the Plan’s present value of accrued benefits by about $240,000. 

Exhibit 17 Application Page 348





Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Introduction 

Exhibit 17 Application Page 354
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 8 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

INTRODUCTION 

The purpose of this actuarial valuation is to measure the funded status of the Plan as of January 1, 2016, to 

calculate the contribution requirements under ERISA for the 2016 Plan Year, and to determine the Plan’s 

unfunded vested benefits for withdrawal liability purposes as of December 31, 2015. 

In Section 3, we summarize the Plan’s market value of assets and trust fund activity and determine the 

actuarial value of assets. 

In Section 4, we determine the appropriate charges and credits to the ERISA Minimum Funding Standard 

Account for the Plan Year ending December 31, 2016, and calculate the minimum required contribution at the 

end of 2016. We also calculate the maximum tax-deductible contribution for the Plan Year ending 

December 31, 2016. 

In Section 5, we test the Plan’s Funded Status by comparing the Plan’s assets to the actuarial present value 

of accumulated plan benefits, computed in accordance with FASB ASC Topic 960. We also summarize the 

Plan’s present value of vested benefits and calculate the Plan’s unfunded vested benefits used for withdrawal 

liability. 

In Section 6, we present a summary of the Plan’s historical valuation results and project the benefit payments 

expected to be made to the Plan’s current participants. 

The appendices present a summary of the Plan, participant statistics (active, vested inactive, and retired), a 

description of the actuarial cost method used to value the Plan’s liabilities, and a summary of our actuarial 

assumptions. 

Exhibit 17 Application Page 355
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Trust Fund Activity 

Exhibit 17 Application Page 356
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 9 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

TRUST FUND ACTIVITY 

In this section, we show the present status of the Plan’s trust fund, trust activity over the past year, and the 

determination of the Plan’s actuarial value of assets. 

Exhibit 3.1 lists the type of assets held and their market value. 

Exhibit 3.2 summarizes the Fund’s activity during the past year. 

Exhibit 3.3 develops the actuarial value of Plan assets as of December 31, 2015. 

Exhibit 3.4 shows the historical investment return for the Trust since 2004. 

Exhibit 17 Application Page 357
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 10 

Plasterers Local #82 Pension Fund 

Exhibit 3.1 

PLASTERERS LOCAL #82 PENSION FUND 

MARKET VALUE OF ASSETS 

(As of December 31, 2015) 

CASH $ 468,688 

INVESTMENTS 

Investment Contract with Insurance Company $ 2,097,982 

Investment Contracts for “Floored” Retirees 2,678,167 

Common Stocks 1,964,186 

Washington Capital Joint Master Trust 4,680,890 

Registered Investment Funds 6,650,460 

 18,071,685 

RECEIVABLES AND LIABILITIES 

Accounts Payable $ (105,658) 

Accounts Receivable 0 

Contributions Receivable 86,607 

Prepaid Expenses 2,632 

 (16,419) 

 

MARKET VALUE OF ASSETS $ 18,523,954 

Exhibit 17 Application Page 358
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 11 

Plasterers Local #82 Pension Fund 

Exhibit 3.2 

PLASTERERS LOCAL #82 PENSION FUND 

RECEIPTS AND DISBURSEMENTS 

(Year Ended December 31, 2015) 

RECEIPTS 

 Net Employer Contributions $ 1,006,855 

 Interest 1,392 

 Dividends 170,073 

 Net Appreciation in Fair Value of Investments 655,783 

 Change in Value of Assets Held for “Floored” Retirees (448,669) 

 Income from Investment with Insurance Company (59,917) 

 Miscellaneous 19 

 Total Receipts $ 1,325,536 

 

DISBURSEMENTS 

 Benefit Payments $ 2,067,499 

 Operating Expenses 237,993 

 Investment Expenses 107,409 

 Total Disbursements $ 2,412,901 

CHANGE IN NET ASSETS 

 Receipts Minus Disbursements $ (1,087,365) 

 Market Value of Net Assets December 31, 2014 19,611,319 

 Market Value of Net Assets December 31, 2015 $ 18,523,954 

Exhibit 17 Application Page 359
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 12 

Plasterers Local #82 Pension Fund 

Exhibit 3.3 

PLASTERERS LOCAL #82 PENSION FUND 

DEVELOPMENT OF THE ACTUARIAL VALUE OF ASSETS 

(As of January 1, 2016) 

Asset Reconciliation 

 (1) (2) (3) (4) (5) (6) (7) 

Year 

Market Value 

of Assets 

beginning 

of year Contributions 

Benefit 

Payments 

Operating 

Expenses 

Cash Flow 

(2)–(3)–(4) 

Actual 

Investment 

Income 

Market Value of 

Assets End of 

Year 

(1)+(5)+(6) 

2015 $19,611,319 $1,006,855 $2,067,499 $237,993 $(1,298,637) $211,272 $18,523,954 

2014 19,627,986 1,220,364 2,076,047 166,495 (1,022,178) 1,005,511 19,611,319 

2013 18,663,903 588,385 2,105,078 178,102 (1,694,795) 2,658,878 19,627,986 

2008 25,840,460 810,789 1,456,891 100,756 (746,858) (6,440,225) 18,653,377 

 

Actuarial Value of Assets 

Year 

Actual Investment 

Rate of Return 

Actual 

Investment Return 

Expected 

Investment Return 

Difference between 

Actual and Expected 

2015 1.1% $ 211,272 $ 1,321,811 $ (1,110,539) 

2014 5.3% 1,005,511 1,428,303 (422,792) 

2013 14.9% 2,658,878 1,328,214 1,330,664 

2008 (25.3)% (6,440,225) 1,906,552 (8,346,777) 

 

Market Value of Assets on January 1, 2016 $ 18,523,954 

 Add 75% of 2015 loss 832,904 

 Add 50% of 2014 loss 211,396 

 Subtract 25% of 2013 gain (332,666) 

 Add 20% of 2008 loss* 1,669,355 

Preliminary Actuarial Value of Assets on January 1, 2016 $ 20,904,943 

Preliminary Actuarial Value as a Percentage of Market Value 113% 

Actuarial Value of Assets (limited to 80-120% of Market Value) $ 20,904,943 

* Investment loss for 2008 is recognized over 10 years as elected under the Pension Relief Act of 2010. 

 

Exhibit 17 Application Page 360

Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Contribution Requirements 

Exhibit 17 Application Page 362
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 14 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

CONTRIBUTION REQUIREMENTS 

In this section we determine the appropriate charges and credits to the ERISA Minimum Funding Standard 

Account and calculate the minimum required contribution under the Internal Revenue Code for the upcoming 

plan year. We also determine the maximum tax-deductible limit under the Internal Revenue Code for the 

upcoming plan year. Under the law, an Enrolled Actuary must calculate costs using an approved actuarial 

cost method and actuarial assumptions which are individually reasonable and, in combination, are his best 

estimate of future Plan experience. Our actuarial cost method and assumptions are fully explained in 

Appendix C. 

Exhibit 4.1 shows the changes in the Plan’s Unfunded Actuarial Liability from January 1, 2015 to January 1, 

2016. 

Exhibit 4.2 balances the ongoing Plan requirements with its resources. The Plan’s requirements consist of 

the Actuarial Present Value of Accrued Plan benefits. Plan resources consist of plan assets and expected 

future contributions to pay off the Plan’s Unfunded Actuarial Liability. 

Exhibit 4.3 calculates the normal cost for the year. The Plan’s normal cost consists of the cost of benefits 

expected to be earned in the next year, plus an allowance for administrative expenses. 

Exhibit 4.4 develops the Plan’s Funding Standard Account and the minimum contribution for 2016. 

Exhibit 4.5 develops the maximum tax-deductible contribution for the 2016 plan year. 

Exhibit 17 Application Page 363
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 15 

Plasterers Local #82 Pension Fund 

Exhibit 4.1 

PLASTERERS LOCAL #82 PENSION FUND 

UNFUNDED ACTUARIAL LIABILITY 

(As of January 1, 2016) 

 (1) Unfunded Actuarial Liability 1/1/15 $ 11,019,856 

 (2) Normal Cost for the 2015 Plan Year $ 377,471 

 (3) Interest at 7.0% on (1) and (2) to 1/1/16 $ 797,813 

 (4) Employer Contributions with Interest at 7.0% from dates paid to 1/1/16 $ 1,036,566 

 (5) Expected Unfunded Actuarial Liability 1/1/16 

(1) + (2) + (3) - (4) $ 11,158,574 

 (6) Experience (Gain)/Loss 

 Investment (Gain)/Loss $ 962,576 

 Demographic (Gain)/Loss* 446,051 1,408,627 

 (7) Plan Change 0 

 (8) Assumption Change 240,249 

 (9) Unfunded Actuarial Liability 1/1/16 

(5) + (6) + (7) + (8) $ 12,807,450 

* The healthy mortality assumption during 2015 included projected mortality improvement through the 

valuation date. Amount shown reflects additional year of projected improvement included in this 

valuation. 

Exhibit 17 Application Page 364
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 16 

Plasterers Local #82 Pension Fund 

Exhibit 4.2 

PLASTERERS LOCAL #82 PENSION FUND 

ACTUARIAL BALANCE SHEET 

(As of January 1, 2016) 

REQUIREMENTS 

Present Value of Accrued Benefits 

Retirees and Beneficiaries $ 19,849,376 

Vested Inactive Participants 6,594,139 

Active Participants: 

Retirement $ 5,642,211 

Death 96,141 

Vested Termination 1,530,526 

Total Active Participants 7,268,878 

TOTAL REQUIREMENTS $ 33,712,393 

RESOURCES

Actuarial Value of Assets $ 20,904,943 

Unfunded Actuarial Liability 12,807,450 

TOTAL RESOURCES $ 33,712,393 

Exhibit 17 Application Page 365
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 17 

Plasterers Local #82 Pension Fund 

Exhibit 4.3 

PLASTERERS LOCAL #82 PENSION FUND 

DEVELOPMENT OF NORMAL COST 

(As of January 1, 2016) 

(1) Unit Credit Normal Cost 

 Retirement $ 135,416 

 Death 2,586 

 Vested Termination 55,631 

 Total $ 193,633 

(2) Estimated Administrative Expenses 

$175,000 ÷ 1.07 0.5 

 

 169,179 

(3) Total Normal Cost (1) + (2) $ 362,812 

 

Exhibit 17 Application Page 366
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 18 

Plasterers Local #82 Pension Fund 

Exhibit 4.4 

PLASTERERS LOCAL #82 PENSION FUND 

DEVELOPMENT OF MINIMUM FUNDING STANDARD ACCOUNT 

Funding Standard Account for the Plan Year Ending December 31, 2015 

(1) Credits 

 (a) Previous Year Credit Balance January 1, 2015 $ 986,818 

 (b) Amortization Credits 1,138,280 

 (c) Employer Contributions 1,006,855 

 (d) Interest at 7.0% on (a), (b) and (c) 178,468 

 (e) Total Credits $ 3,310,421 

(2) Charges 

 (a) Normal Cost (including expenses) $ 377,471 

 (b) Amortization Charges 1,900,971 

 (c) Interest at 7.0% on (a) and (b) 159,491 

 (d) Total Charges $ 2,437,933 

(3) Credit Balance (Accumulated Funding Deficiency) 

December 31, 2015 (1e) – (2d) $ 872,488 

Minimum Required Contribution for Plan Year Ending December 31, 2016 

(1) Normal Cost (including expenses) $ 362,812 

(2) Amortization Charges Less Amortization Credits 1,511,618 

(3) Total Charges (1)+(2) $ 1,874,430 

(4) Credit Balance January 1, 2016 $ 872,488 

(5) Full Funding Credit $ 0 

(6) Minimum Required Contribution, December 31, 2016 

[ (3) – (4) ] x 1.07  (5) $ 1,072,078 

(7) Minimum Contribution to Maintain Credit Balance, Middle of Year 

[(4) + (6)] ÷ 1.035 $ 1,878,808 

Exhibit 17 Application Page 367
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 19 

Plasterers Local #82 Pension Fund 

Exhibit 4.4 

(Continued) 

AMORTIZATION CHARGES AND CREDITS 

Amortization Charges 

 

Date 

Established Type

Remaining 

Period

Remaining 

Base

Minimum 

Payment

1/1/78 Benefit Change 2 57,322 $ 29,630 $ 

1/1/87 Benefit Change 1 3,038 3,038 

1/1/87 Benefit Change 1 22,968 22,968 

1/1/89 Benefit Change 3 7,743 2,757 

1/1/90 Benefit Change 4 211,941 58,478 

1/1/91 Benefit Change 5 167,357 38,147 

1/1/94 Benefit Change 8 17,196 2,691 

1/1/96 Benefit Change 10 323,767 43,081 

1/1/96 Benefit Change 10 2,062 274 

1/1/97 Assumption Change 11 12,110 1,509 

1/1/99 Benefit Change 13 422,509 47,246 

1/1/01 Benefit Change 15 176,458 18,107 

1/1/02 Benefit Change 16 7,029 695 

1/1/04 Benefit Change 18 156,708 14,560 

1/1/06 Assumption Change 20 691,558 61,008 

1/1/06 Plan Change 20 1,421,297 125,384 

1/1/09 Assumption Change 8 79,166 12,390 

1/1/09 Experience Loss 8 3,080,801 482,182 

1/1/11 Experience Loss 10 1,887,989 251,222 

1/1/12 Assumption Change 11 93,216 11,618 

1/1/12 Experience Loss 11 2,295,408 286,083 

1/1/13 Assumption Change 12 53,947 6,348 

1/1/13 Experience Loss 12 80,344 9,454 

1/1/14 Assumption Change 13 57,215 6,398 

1/1/15 Experience Loss 14 1,289,979 137,853 

1/1/15 Assumption Change 14 1,618,035 172,910 

1/1/16 Experience Loss 15 1,408,627 144,542 

1/1/16 Assumption Change 15 240,249 24,652

$ 2,015,225 15,886,039 $ 

As of January 1, 2016

Exhibit 17 Application Page 368
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 20 

Plasterers Local #82 Pension Fund 

Exhibit 4.4 

(Continued) 

AMORTIZATION CHARGES AND CREDITS 

Amortization Credits 

Date 

Established Type

Remaining 

Period

Remaining 

Base

Minimum 

Payment

1/1/88 Cost Method Change 2 52,018 $ 26,889 $ 

1/1/92 Reestablish Liabilities 6 280,767 55,050 

1/1/93 Assumption Change 7 45,836 7,949 

1/1/08 Experience Gain 7 267,275 46,349 

1/1/09 Asset Method Change 3 705,190 251,134 

1/1/10 Experience Gain 9 584,196 83,800 

8/1/10 Plan Change 9.583 85,092 11,668 

1/1/14 Experience Gain 13 72,474 8,104 

1/1/14 Plan Change 13 113,252 12,664

$ 503,607 2,206,100 $ 

As of January 1, 2016

Exhibit 17 Application Page 369
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 21 

Plasterers Local #82 Pension Fund 

Exhibit 4.5 

PLASTERERS LOCAL #82 PENSION FUND 

MAXIMUM TAX–DEDUCTIBLE CONTRIBUTION 

(Plan Year Ending December 31, 2016) 

Maximum Tax-Deductible Contribution 

(Lesser of I and II below, but not less than III) $ 59,234,744 

I. 10-Year Amortization Limitation 

 (1) Normal Cost as of January 1, 2016 $ 362,812 

 (2) Fresh Start Amortization of Unfunded Actuarial Liability 1,704,199 

 (3) Interest on (1) and (2) to December 31, 2016 144,691 

 (4) Maximum Contribution for the 2016 Plan Year 

 (1) + (2) + (3) $ 2,211,702 

II. Full Funding Limitation 

 A. Full Funding Limitation before Floor 

 (1) Unit Credit Actuarial Liability as of January 1, 2016 $ 33,712,393 

 (2) Unit Credit Normal Cost as of January 1, 2016 362,812 

 (3) Test Value of Assets 18,523,954 

 (4) Full Funding Limitation before Floor 

 [(1) + (2)  (3)] × 1.07, but not less than zero $ 16,639,839 

 B. Full Funding Limitation Floor 

 (1) Current Liability as of December 31, 2016 

 (calculated using 3.28% interest rate assumption) $ 56,366,574 

 (2) 90% of Current Liability 50,729,917 

 (3) Expected Actuarial Value of Assets at Year End 19,678,460 

 (4) Full Funding Limitation Floor 

 (2)  (3), but not less than zero $ 31,051,457 

C. Full Funding Limitation 

 Greater of A and B $ 31,051,457 

III. Unfunded 140% of Current Liability 

 (1) Current Liability as of December 31, 2016 

 (calculated using a 3.28% interest rate assumption) $ 56,366,574 

 (2) 140% of Current Liability 78,913,204 

 (3) Expected Actuarial Value of Assets at Year End 19,678,460 

 (4) Unfunded 140% of Current Liability 

 (2)  (3), but not less than zero $ 59,234,744 

Exhibit 17 Application Page 370
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 22 

Plasterers Local #82 Pension Fund 

Exhibit 4.5 

(Continued) 

The Plan’s current liability is developed in the following table. Note that current liability is determined using a 

3.28% interest assumption for all liabilities. As required, the 3.28% interest assumption is within the required 

corridor of the corporate bond rate published by the IRS. 

Current Liability 

Current Liability, Beginning of Year

Retirees and Beneficiaries $ 28,647,539 

Vested Inactive Participants 12,996,568 

Active Participants – Vested Benefits 14,682,275 

Active Participants – Nonvested Benefits 206,163 

Total $ 56,532,545 

Changes Expected During 2016 Plan Year

Accrual of Benefits $ 434,038 

Expected Release of Liability (2,428,683) 

Interest 1,828,674 

Total $ (165,971) 

Current Liability, End of Year $ 56,366,574 

 

Exhibit 17 Application Page 371
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Funded Status 

Exhibit 17 Application Page 372
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 23 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

FUNDED STATUS 

In this section, we test the Plan’s funded status by comparing the Fund’s assets to the actuarial present value 

of accumulated plan benefits and actuarial present value of vested benefits. 

Exhibit 5.1 compares the Plan’s assets to the actuarial present value of accumulated plan benefits as of 

December 31, 2015. 

Exhibit 5.2 details the change in the actuarial present value of accumulated plan benefits from December 31, 

2014 to December 31, 2015. 

Exhibit 5.3 shows the Plan’s liability for withdrawal liability purposes. Employers withdrawing from the Plan 

during the 2016 plan year will be assessed a portion of this liability. 

Exhibit 17 Application Page 373
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 24 

Plasterers Local #82 Pension Fund 

Exhibit 5.1 

PLASTERERS LOCAL #82 PENSION FUND 

STATEMENT OF ACTUARIAL PRESENT VALUE OF 

ACCUMULATED PLAN BENEFITS 

FASB ASC Topic 960 

December 31, 2014 December 31, 2015 

VESTED BENEFITS 

Participants Currently Receiving Payments $ 18,539,611 $ 19,849,376 

Vested Inactive Participants 6,484,617 6,594,139 

Active Participants 7,540,131 7,173,722 

Total $ 32,564,359 $ 33,617,237 

NONVESTED BENEFITS 

Vested Inactive Participants $ 0 $ 0 

Active Participants 92,333 95,156 

Total $ 92,333 $ 95,156 

ACTUARIAL PRESENT VALUE OF 

ACCUMULATED PLAN BENEFITS $ 32,656,692 $ 33,712,393 

ASSETS 

Actuarial Value of Assets (AVA) $ 21,636,836 $ 20,904,943 

Market Value of Assets (MVA) $ 19,611,319 $ 18,523,954 

FUNDING RATIOS 

Ratio of AVA to Vested Benefits 66% 62% 

Ratio of MVA to Vested Benefits 60% 55% 

Ratio of AVA to Accumulated Plan Benefits 66% 62% 

Ratio of MVA to Accumulated Plan Benefits 60% 55% 

 

Exhibit 17 Application Page 374
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 25 

Plasterers Local #82 Pension Fund 

Exhibit 5.2 

PLASTERERS LOCAL #82 PENSION FUND 

STATEMENT OF CHANGES IN ACTUARIAL PRESENT VALUE OF 

ACCUMULATED PLAN BENEFITS 

Actuarial Present Value of Accumulated Plan Benefits at 

December 31, 2014 

 

 $ 32,656,692 

Increase (Decrease) during the year attributable to: 

 Benefits Accumulated* $ 669,345 

 Increase for Interest due to the Decrease in the 

 Discount Period 

2,213,606 

 Benefits Paid (2,067,499) 

 Assumption Changes 240,249 

 Plan Amendments 0 

 Net Increase 1,055,701 

Actuarial Present Value of Accumulated Plan Benefits at 

December 31, 2015 

 

 $ 33,712,393 

* The healthy mortality assumption during 2015 included projected mortality improvement through the 

valuation date. Amount shown reflects additional year of projected improvement included in this 

valuation. 

Exhibit 17 Application Page 375
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 26 

Plasterers Local #82 Pension Fund 

Exhibit 5.3 

PLASTERERS LOCAL #82 PENSION FUND 

WITHDRAWAL LIABILITY 

(December 31, 2015) 

(1) Present Value of Vested Benefits 

Retirees $ 19,849,376 

Vested Inactive Participants 6,594,139 

Active Participants 

Retirement $ 5,573,717 

Death 94,846 

Vested Withdrawal 1,505,159 7,173,722 

 Total Present Value of Vested Benefits $ 33,617,237 

(2) Market Value of Assets 18,523,954 

(3) Unfunded Vested Benefit Liability (1) – (2) $ 15,093,283 

(4) Unamortized Balance of the Value of Reduced Nonforfeitable Benefits* 153,654 

(5) Total Liability for Withdrawal Liability Purposes (3) + (4), but not less than zero $ 15,246,937 

* By law, certain benefit reductions under the Rehabilitation Plan must be disregarded in determining 

withdrawal liability. Under PBGC Technical Update 10-3, the value of these benefit reductions as of 

December 31, 2010 ($130,431) and December 31, 2013 ($56,737) were set up as separate pools to be 

written down over 15 years. Withdrawing employers will be assessed a portion of the unamortized 

balance in addition to a portion of the Plan’s unfunded vested benefits. 

Exhibit 17 Application Page 376
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

History and Projections 

Exhibit 17 Application Page 377
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 27 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

HISTORY AND PROJECTIONS 

Exhibit 6.1 shows the Plan’s historical progress in funding accrued benefits. 

Exhibit 6.2 shows some information on the participants included in the last several valuations. 

Exhibit 6.3 shows the projected benefit payments expected to be made based on the actuarial assumptions 

detailed in this report. This information can be useful for the investment manager in planning future liquidity 

requirements. 

 

Exhibit 17 Application Page 378



Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Appendix A 

Summary of Principal Plan Provisions 

Exhibit 17 Application Page 382
Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2016 Actuarial Valuation 31 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

SUMMARY OF PRINCIPAL PLAN PROVISIONS 

(January 1, 2016)

Plan Identification 

Employer Identification Number (EIN): 93-6075453 

Plan Number (PN): 001 

Effective Date 

The effective date of the original Trust was January 1, 1962. The plan was last restated effective January 1, 

2014. 

Eligibility 

An employee becomes an Active Participant on the earliest date on which he is an eligible employee. For 

these purposes, an eligible employee is any employee of an employer whose employment is represented for 

collective bargaining by the Operative Plasterers and Cement Masons International Association, Local Union 

No. 82. 

Accrual Service 

(a) Future Accrual Service. For service on or after January 1, 1962 and before January 1, 1976, one year 

of Future Accrual Service is earned for each Plan Year in which an Active Participant has at least 400 

Hours of Service. 

For service on or after January 1, 1976, one year of Future Accrual Service is earned for each Plan 

Year in which an Active Participant has at least 400 Hours of Service. However, during the Plan Year 

in which the Participant’s Normal Retirement Date occurs, the Participant will earn a year of Future 

Accrual Service if they are credited with at least one Hour of Service. 

(b) Past Accrual Service. Service prior to January 1, 1962 is credited only for a Participant who became 

an Active Participant under the Prior Plan on January 1, 1962 or the date the Participant’s local union 

entered the Prior Plan, if later, equal to the number of years (not to exceed 10) of service in jobs 

covered by the collective bargaining agreement with the Union or membership in a participating local 

Union before January 1, 1962, or the date the Participant’s local Union entered the Prior Plan, if later. 

An employee’s Past Accrual Service shall not exceed their Future Accrual Service. 

Normal Retirement Benefits 

(a) Eligibility 

Participants are eligible for normal retirement at the later of age 62 or two years after the date of active 

participation. 

(b) Benefit Amount 

The monthly normal retirement benefit is equal to the Participant’s vested percentage times the sum of 

(1), (2), (3), (4), (5), (6), (7) and (8) as follows: 

 

Exhibit 17 Application Page 383

Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2016 Actuarial Valuation 33 

Plasterers Local #82 Pension Fund 

Retirement 

Age 

% of 

Accrued Benefit 

62 100% 

61 97% 

60 94% 

59 91% 

58 88% 

57 85% 

(2) If a Participant does not meet the Tier 1 criteria, the Participant's normal retirement benefit will be 

multiplied by the appropriate factor from the table below. 

Retirement 

Age 

% of 

Accrued Benefit 

62 100.0% 

61 90.7% 

60 82.3% 

59 74.9% 

58 68.2% 

57 62.2% 

(c) Recency Test 

The Recency Test is satisfied if the Participant completes at least 400 hours of service under the Trust 

in the calendar year of retirement or the calendar year prior to retirement, or if the Participant 

completes at least 600 hours of service in two of the last three calendar years prior to retirement. 

(d) Form of Benefit 

The form of benefit is the same as that payable on normal retirement. 

Optional Forms of Payment 

Retirement benefits may be paid in one of the following forms of payment: 

a) A monthly income for the life of the Participant. No benefits are paid after the Participant’s death. 

b) A monthly income for the life of the Participant. Upon the Participant’s death, 50%, 66 2/3%, 75% or 

100% of the original benefit will be paid monthly to the Participant’s surviving beneficiary for their life. 

c) A monthly income for the life of the Participant with 60, 120 or 180 payments guaranteed. 

Disability Retirement 

(a) Eligibility 

Active Participants are eligible for disability retirement after completion of 15 years of vesting service if 

they become totally and permanently disabled within 24 months of active employment under the Plan. 

Participants are deemed to be disabled if they meet the following requirements: 

i) The Participant is disabled as a result of sickness or injury to the extent that they are completely 

prevented from performing any work, engaging in any occupation for wage or profit, 

ii) The Participant has been continuously disabled for 6 months, as determined by the Trustees, and 

iii) The Participant is eligible for a disability benefit under Title II of the Federal Social Security Act. 

Exhibit 17 Application Page 385
Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2016 Actuarial Valuation 34 

Plasterers Local #82 Pension Fund 

(b) Benefit Amount 

The monthly benefit is equal to 50% of the Participant’s retirement benefit accrued on his date of 

disability. The maximum number of retroactive benefit payments for a disability claim is 12 months. 

(c) Form of Benefit 

Benefits are payable to the Participant prior to normal retirement age as long as the participant remains 

disabled. Once a disabled retiree reaches normal retirement age, the Participant will retire and receive 

a normal retirement benefit. 

Vested Benefits 

A Participant who earns an Hour of Service after January 1, 1999 becomes 100% vested upon completion of 

five years of vesting service. 

An active Participant also becomes 100% vested when he reaches his Normal Retirement Age. 

Death Benefits 

The benefits described below are payable prior to a Participant’s annuity starting date. After the Participant’s 

annuity starting date, death benefits will be based on the Participant’s form of payment. 

Qualified Preretirement Survivor Annuity 

A Qualified Preretirement Survivor Annuity is payable if the following requirements are met: 

1) The Participant is survived by a spouse to whom they were continuously married throughout the oneyear period ending on the Participant’s date of death. 

2) The Participant’s Vesting Percentage at their date of death was greater than zero. 

3) The Participant has not elected to waive this benefit in favor of the single sum death benefit described 

below. 

The Qualified Preretirement Survivor Annuity benefit is a straight life annuity payable to the Participant’s 

surviving spouse, payable at the Participant’s earliest retirement age. The amount of this benefit will be 

determined as if the Participant terminated employment on the date of death and survived to retirement age, 

retired under a 50% Joint and Survivor Annuity and then died the next day. 

60-Month Survivor Annuity 

In lieu of the Qualified Preretirement Survivor Annuity, a Participant’s surviving spouse may choose to receive 

60 monthly benefit payments of the Participant’s accrued normal retirement benefit as of the date of death. 

When in critical status, this benefit is converted into an actuarially equivalent life annuity. 

Single Sum Death Benefit 

If the requirements for the Qualified Preretirement Survivor Annuity have not been met and the Participant 

was under active employment within the last 12 months under the plan, a single sum death benefit equal to 

the lesser of $15,000 or the aggregate amount of employer contributions made on the Participant’s behalf is 

payable to the Participant’s designated beneficiary. 

While the Plan is in critical status, the benefit may not be paid as a lump sum. 

Exhibit 17 Application Page 386
Milliman Actuarial Valuation Appendix A - Summary of Principal Plan Provisions 

January 1, 2016 Actuarial Valuation 35 

Plasterers Local #82 Pension Fund 

Changes from Prior Valuation 

There were no plan changes reflected for the first time in the January 1, 2016 actuarial valuation. 

Exhibit 17 Application Page 387
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Appendix B 

Summary of Employee Data 

Exhibit 17 Application Page 388
Milliman Actuarial Valuation Appendix B - Summary of Employee Data 

January 1, 2016 Actuarial Valuation 36 

Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

SUMMARY OF EMPLOYEE DATA 

The valuation was based on participant data provided by the plan administrator. 

This data is an integral part of the actuarial valuation of a pension plan. All of the calculations made in the 

valuation are based upon this data. This section outlines the data for active, vested inactive and retired 

participants. 

Exhibit 1 is a distribution of active participants as of January 1, 2016 by age and service. For valuation 

purposes, active participants are those employees who worked at least 400 hours during 2015. Also included 

are new hires whose annualized hours meet or exceed 400. 

Exhibit 2 is a distribution of vested inactive participants. 

Exhibit 3 is a distribution of retirees and beneficiaries currently receiving benefits from the Trust. 

Exhibit 17 Application Page 389
Milliman Actuarial Valuation Appendix B - Su

January 1, 2016 Actuarial Valuation Plasterers Local #82 Pension Fund 

PLASTERERS LOCAL #82 PENSION FUND 

DISTRIBUTION OF ACTIVE PARTICIPANTS 

(January 1, 2016) 

Years of Vesting Service

Under 1 1 to 4 5 to 9 10 to 14 15 to 19 

Age Group Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg. 

Under 25 0 0 3 781 0 0 0 0 0 

25 to 29 0 0 1 670 3 1,489 1 1,024 0 30 to 34 0 0 1 418 0 0 0 0 0 35 to 39 0 0 4 1,323 2 1,167 4 1,649 2 140 to 44 0 0 1 1,863 2 1,645 2 1,715 1 1

45 to 49 0 0 2 1,054 1 568 1 2,401 3 150 to 54 0 0 2 1,385 0 0 3 993 3 155 to 59 0 0 1 608 0 0 2 1,312 0 60 to 64 0 0 0 0 0 0 0 0 0 

65 to 69 0 0 0 0 1 561 0 0 0 

70 & Over 0 0 0 0 0 0 0 0 0 

Totals 0 0 15 1,071 9 1,247 13 1,466 9 1

25 to 29 30 to 34 35 to 39 40 & Up All Year

Age Group Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg. Hours Count Avg

Under 25 0 0 0 0 0 0 0 0 3 

25 to 29 0 0 0 0 0 0 0 0 5 1

30 to 34 0 0 0 0 0 0 0 0 1 35 to 39 0 0 0 0 0 0 0 0 12 1

40 to 44 0 0 0 0 0 0 0 0 7 1

45 to 49 3 1,537 0 0 0 0 0 0 13 150 to 54 4 1,378 2 1,804 0 0 0 0 18 155 to 59 1 1,298 1 1,844 1 2,197 0 0 8 160 to 64 0 0 0 0 2 1,451 0 0 2 165 to 69 0 0 0 0 0 0 0 0 1 

70 & Over 0 0 0 0 0 0 0 0 0 

Totals 8 1,428 3 1,817 3 1,699 0 0 70 1
Milliman Actuarial Valuation Appendix B - Summary of Employee Data 

January 1, 2016 Actuarial Valuation 38 

Plasterers Local #82 Pension Fund 

Appendix B-2 

PLASTERERS LOCAL #82 PENSION FUND 

DISTRIBUTION OF VESTED INACTIVE PARTICIPANTS 

(As of January 1, 2016) 

Age 

Group Number 

Total 

Estimated 

Monthly Normal 

Retirement Benefit 

Under 25 0 $ 0 

25 – 29 1 193 

30 – 34 1 243 

35 – 39 8 9,228 

40 – 44 17 16,752 

45 – 49 16 14,655 

50 – 54 20 20,200 

55 – 59 24 24,975 

60 – 64 13 12,711 

65 – 69 5 1,778 

70 & Over 2 119 

Total 107 $ 100,854 

Average $ 943 

Exhibit 17 Application Page 391
Milliman Actuarial Valuation Appendix B - Summary of Employee Data 

January 1, 2016 Actuarial Valuation 39 

Plasterers Local #82 Pension Fund 

Appendix B-3 

PLASTERERS LOCAL #82 PENSION FUND 

SUMMARY OF RETIREES AND BENEFICIARIES 

(As of January 1, 2016) 

Age 

Group Number 

Total 

Monthly Benefit 

Under 50 3 $ 2,732 

50 – 54 0 0 

55 – 59 13 16,721 

60 – 64 26 36,682 

65 – 69 24 51,430 

70 – 74 16 25,815 

75 – 79 13 19,226 

80 – 84 13 11,670 

85 – 89 7 6,100 

90 – 94 9 5,884 

95 & Over 1 674 

Total 125 $ 176,934 

Average $ 1,415 

Exhibit 17 Application Page 392
Milliman Actuarial Valuation 

January 1, 2016 Actuarial Valuation 

Plasterers Local #82 Pension Fund 

Appendix C 

Actuarial Assumptions and Methods 

Exhibit 17 Application Page 393



PLASTERERS LOCAL #82 PENSION FUND

NOTICE OF A PROPOSED REDUCTION OF YOUR PENSION BENEFITS

On March 28, 2018, the Board of Trustees of the Plasterers Local #82 Pension 

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

approval to reduce benefits under the Plan. This type of benefit reduction is 

allowed by the Federal law called the Multiemployer Pension Reform Act of 

2014.

You are getting this notice because you have a pension benefit under the Plan. 

The enclosed benefit estimate describes the proposed reduction of your 

monthly payments. This notice will also answer the following questions for 

you— 

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

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

3. How did the Board of Trustees decide whose benefits to reduce

and by how much?

4. What are the proposed reductions in benefits?

5. What comes next?

1. Why is the Board of Trustees proposing to reduce

benefits?

The Plan’s actuary estimated that, unless benefits are reduced, the Plan will 

not have enough money to pay benefits in the year 2034. This estimate is 

based on how much money the actuary expects the Plan to receive and to pay 

out each year. The Plan’s actuary estimated that, with the reduction of 

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

of money.

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

If the Plan does not have enough money to pay benefits, then only the amount 

guaranteed by the Pension Benefit Guaranty Corporation (“PBGC”) will be 

paid. The PBGC-guaranteed benefit level would be a greater reduction than 

what is proposed under this proposed reduction.

You can find the amount of your benefit that is guaranteed by PBGC on the 

enclosed benefit estimate.

3. How did the Board of Trustees decide whose benefits

to reduce and by how much?

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

proposed reduction— 

• The total reduction in everybody’s benefits must be estimated to be large

enough to keep the Plan from running out of money but not larger than

needed to do that.

Terms to Know

Actuary — professional hired to 

analyze the data and calculate the 

value of benefits earned under the 

Plan and determine if the Plan is 

well-funded.

PBGC — the Pension Benefit 

Guaranty Corporation is an 

independent agency of the federal 

government. The Plan pays

premiums to the PBGC’s insurance 

program to protect benefits (up to 

the limits set by law) if the Plan 

becomes insolvent. 

Early retirement: if you retire 

between ages 57 and 62 (or before 

August 1, 2010, if you retired 

between ages 52 and 62), your 

benefit is reduced to account for 

the expectation you’ll receive 

benefits over a longer time.

Normal retirement: the “normal” 

retirement age for this Plan is 62 

(or, if later, two years after 

becoming a plan participant). 

Appendix A Application Page 397
• Your monthly benefit and the benefit of your beneficiary cannot be 

reduced below 110% of the amount guaranteed by PBGC.

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

• The benefits of people who are at least 80 years old on February 28, 2019 

and their beneficiaries cannot be reduced.

• The benefits of people who are at least 75 years old on February 28, 2019 

and their beneficiaries are partially protected, and the closer the person is 

to age 80 the less the benefits can be reduced.

• The reduction of benefits must be spread fairly among the people who 

have a pension benefit under the Plan.

In deciding whether the proposed reduction is spread fairly, the Board of 

Trustees took into account the following: 

• Current active members are making significantly higher contributions to 

the Plan and are earning significantly lower benefits than those who came 

before.

• Retirees have already been receiving ― and will continue to receive until 

the reduction goes into effect ― full benefits from the Plan. Active 

members have not yet received any benefits.

• Those who are no longer actively participating in the Plan may not have 

received any benefits yet, but they also have not been contributing to 

solving the funding problem (as active members have been doing).

4. What are the proposed reductions in benefits?

The Board of Trustees proposes the following reduction of benefits effective 

February 1, 2019: 

• 22% reduction for participants who worked at least 400 hours in 2015 or 

2016. 

• 31% reduction for participants who did not work at least 400 hours in 2015 

or 2016. 

Amounts earned on or after January 1, 2017 will not be reduced. That means 

the amount of your benefit earned through December 31, 2016 would be 

multiplied by the percentage above to calculate your reduction. (See the 

enclosed benefit estimate for your estimated reduced benefit amount.)

As required by law, the reductions will differ in the following situations: 

• Participants or beneficiaries with benefits based on disability would have 

no reduction to the disability portion of their benefit. 

• Participants or beneficiaries who are at least age 80 on February 28, 2019 

would have no reduction.

Examples:

These examples assume the 

benefit reduction takes effect 

Feb.1, 2019. 

65-year-old retiree:

Benefit earned through

Dec. 31, 2016:

$2,000

Reduction on Feb. 1, 2019:

$2,000 x 0.31 = $620

Reduced benefit = 

$2,000 - $620 = $1,380

40-year-old active participant:

Benefit earned through

Dec.31, 2016:

$400

Reduction on Feb. 1, 2019

$400 x 0.22 = $88

$400 - $88 = $312

Benefit earned since Jan. 1, 2017:

$125 (reduction does not apply)

Total benefit as of Feb. 1, 2019:

$312 + $125 = $437

Appendix A Application Page 398
• Participants or beneficiaries who are at least age 75 on February 28, 2019 

would have a smaller benefit reduction. Their benefit earned through 

December 31, 2016 would be reduced as follows: 

Monthly benefit — 

Monthly benefit

times

0.22 or 0.31

(benefit reduction if 

younger than 75)

X 

Number of months 

beginning with March

2019 and ending with 

the month the person 

turns 80

divided by

60

(percent that 

represents how close 

the person is to age 80)

The proposed suspension will remain in effect indefinitely. It will end when 

the Plan is no longer projected to run out of money without the reduction in 

place. We expect reduced benefits to be in place for quite a few years. For 

some, that means reduced benefits for the remainder of retirement. For 

others, there’s at least a possibility that their benefit would come back up to 

the unreduced amount at some point in the future.

This benefit reduction is expected to stabilize the Plan and keep it from 

running out of money. This expectation is based on a number of assumptions; 

if reality differs significantly from these assumptions, the reduction might not 

work as intended. However, we have used realistic assumptions to give the 

Plan the best chance of success.

The proposed reduction is not designed to get the Plan back to 100% funded. 

The cuts are only big enough, and will only last long enough, to keep the Plan 

from running out of money.

5. What comes next?

Approval or denial of the application by the Treasury 

Department

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

all of the legal requirements under Federal law. If the application meets all of 

those requirements, the Treasury Department is required to approve the 

application. If the application does not meet the legal requirements, the 

Treasury Department will deny the application. The Treasury Department will 

make a decision in time to implement the proposed reductions by 

November 8, 2018.

Examples cont’d: 

Retiree who is 78 and 4 months on 

Feb. 28, 2019:

Benefit earned through

Dec. 31, 2016:

$2,000

Reduction on Jan. 1, 2017

(if younger than 75):

$2,000 x 0.31 = $620

Number of months beginning with 

March 2019 and ending with the 

month the person turns 80:

20 months

$620 x (20 ÷ 60) = $207

Reduced benefit = $2,000 - $207 = 

$1,793

80-year-old retiree:

Benefit earned through Dec.31, 

2016:

$2,000

No reduction: Benefit on Feb.1, 

2019 remains $2,000

Appendix A Application Page 399
You can get information from the Treasury Department

More information about the proposed benefit reductions and a copy of the 

application is available at www.treasury.gov/mpra.

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

Treasury Department receives it. The application includes more information 

about the proposed reduction, including details about: 

• the Plan actuary’s certification that the Plan will run out of money (that 

is, that the plan is in “critical and declining status”); 

• how the proposed reduction would satisfy the requirement that it be large 

enough so that the Plan is estimated not to run out of money, while not 

being larger than needed; and 

• the sensitivity of these estimates to the assumptions used.

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

keep the Plan from running out of money and why the Board of Trustees 

believes that a benefit reduction is the only remaining option to keep the Plan 

from running out of money. In addition, the application explains why the Board 

of Trustees believes that the proposed reduction is spread fairly among the 

people who have a pension benefit under the Plan.

The Treasury Department website will also provide updated information on the 

application, such as whether the application has been updated or withdrawn.

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

Department at the following address:

Department of the Treasury

Attn: MPRA Office, Room 1204

1500 Pennsylvania Avenue, NW

Washington, DC 20220

You can comment on the application to reduce benefits 

You can submit a comment on the application by going to 

www.treasury.gov/mpra. Comments may also be mailed to the Department of 

the Treasury, at the address listed above. All interested parties can make 

comments, and the comments will be publicly available.

Retiree representative

The Board of Trustees is not required to select a retiree representative, 

because the Plan has fewer than 10,000 participants. The Board of Trustees 

has not chosen to select a retiree representative.

Vote on the proposed benefit reduction 

If the application for the proposed reduction of benefits is approved by the 

Treasury Department, then you will have the opportunity to vote on the 

proposed reduction. Unless a majority of all participants and beneficiaries of 

the Plan vote to reject the reduction, the Treasury Department must allow the 

reduction of benefits to take effect. This means that not voting counts the 

same as a vote to approve the reduction.

Appendix A Application Page 400
Your right to see Plan documents

You may want to review Plan documents to help you understand your rights 

and the proposed reduction to your benefits. The Plan administrator must 

respond to your request for the following documents within 30 days:

• The Plan document (including any amendments adopted to reflect an 

authorized reduction of benefits), trust agreement, and other documents 

governing the Plan (such as collective bargaining agreements).

• The Plan’s most recent summary plan description (SPD or plan brochure) 

and any summary of material modifications.

• The Plan’s Form 5500 annual reports, including the accountant’s report 

and audited financial statements, filed with the U.S. Department of Labor 

during the last six years.

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

• Actuarial reports, including reports prepared in anticipation of the benefit 

reduction, furnished to the Plan within the last six years.

• The Plan’s current rehabilitation plan, including contribution schedules 

and, if the proposed benefit reduction goes into effect, annual plansponsor determinations that all reasonable measures to avoid running out 

of money continue to be taken and that the Plan would run out of money if 

there were no benefit reductions.

• Any quarterly, semi-annual or annual financial reports prepared for the 

Plan by an investment manager, fiduciary or other advisor and furnished to 

the Plan within the last six years.

The Plan administrator may charge you the cost per page to the Plan for the 

cheapest way of copying documents, but cannot charge more than 25 cents 

per page. The Plan’s Form 5500 Annual Return/Report of Employee Benefit 

Plan is also available free of charge at www.dol.gov/ebsa/5500main.html. 

Some of the documents also may be available for examination, without 

charge, at the Plan administrator’s office, your worksite or union hall.

Your right to challenge incorrect calculations

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

have the right to submit a claim to the Plan to have the calculation corrected. 

The Plan’s summary plan description (“SPD”) tells you how to submit a claim 

for appeal. The SPD also describes your right to have an arbitrator review the 

Plan’s final decision on your claim.

If you believe the information used to calculate your estimate (shown on the 

enclosed benefit estimate) is wrong, please contact the Plan Administration 

office:

By phone: 503-232-3257

By email: L82.pension@masonry-trusts.com

By mail: 12812 NE Marx Street

 Portland, OR 97230 

Appendix A Application Page 401

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 22 years of credited service under the Plan.

• You will be age 69 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You did not work at least 400 hours in 2015 or 2016.

Here is how this estimate was calculated:

Current Benefit:

$893.80

Reduction:

$893.80 x 0.10 * = $89.38

Reduced benefit = $893.80 – $89.38 = $804.42

* Because your reduced benefit would have been less than 110% of the PBGC guaranteed benefit, your reduction has 

been limited to 10% instead of 31%.

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $731.06. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 403

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 27 years of credited service under the Plan.

• You will be age 69 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You did not work at least 400 hours in 2015 or 2016.

Here is how this estimate was calculated:

Current Benefit:

$2,619.47

Reduction:

$2,619.47 x 0.31 = $812.04

Reduced benefit = $2,619.47 – $812.04 = $1,807.43

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $965.25. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 405

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 8 years of credited service under the Plan as of December 31, 2016.

• You will be age 41 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You worked at least 400 hours in 2015 or 2016.

The proposed reduction would affect the benefit you earned through December 31, 2016. Benefits earned after that 

date are not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated:

Benefit earned through December 31, 2016:

$210.49

Reduction:

$210.49 x 0.059 * = $12.42

Reduced benefit = $210.49 – $12.42 = $198.07

* Because your reduced benefit would have been less than 110% of the PBGC guaranteed benefit, your reduction has 

been limited to 5.9% instead of 22%.

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $179.92. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 407

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 5 years of credited service under the Plan as of December 31, 2016.

• You will be age 34 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You did not work at least 400 hours in 2015 or 2016.

Here is how this estimate was calculated:

Benefit earned through December 31, 2016:

$243.16

Reduction:

$243.16 x 0.191 * = $46.44

Reduced benefit = $243.16 – $46.44 = $196.72

* Because your reduced benefit would have been less than 110% of the PBGC guaranteed benefit, your reduction has 

been limited to 19.1% instead of 31%.

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $178.75. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 409

How Your Proposed Benefit Reduction Estimate Is Calculated 

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. If the 

benefit reduction starts later, the effect of the proposed reduction on your benefit might be different. Final 

calculations will be made once the reduction is approved. 

This estimate is based on the following information from Plan records: 

 You have 15 years of credited service under the Plan. 

 You will be age 61 as of February 28, 2019. 

 The portion of your benefit that is based on disability is $933.27. 

 You did not work at least 400 hours in 2015 or 2016. 

PBGC Guarantees Your Benefit Up to a Limit 

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $536.25. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less. 

Appendix A Application Page 411

Appendix A Application Page 413

Appendix A Application Page 415
Plasterers Local 82

HOW YOUR MONTHLY PAYMENTS WOULD BE AFFECTED

Example #8 

Disability-Based Limit: Contingent Beneficiary

This personal estimate shows how your benefit would change if the proposed reduction is approved. Nothing is 

happening to your benefit right now.

Estimate of Proposed Benefit for Example 8

Your current monthly disability benefit is $3,619.08. 

If the reduction is NOT approved

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $1,251.25. 

If the reduction is approved

Because you are receiving disability benefits, your benefit would not change under the proposed reduction: 

$3,619.08 per month for your lifetime

However, in the event of your death, you beneficiary’s benefit would be affected by the proposed reduction: 

Current survivor benefit: $3,619.08 x 75% = $2,714.31

Reduction: $2,714.31 X 0.31 = $841.44

Reduced benefit: $2,714.31 − $841.44 = $1,872.87

After your death, your beneficiary would receive $1,872.87 per month

Note: These numbers are estimates. Final calculations will be made when the reduction is approved. In addition, the 

actual amount you receive when you retire will depend on factors such as when you begin receiving payments and 

which payment form you choose. 

The proposed suspension will remain in effect indefinitely. 

TURN OVER

Appendix A Application Page 416
How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. If the 

benefit reduction starts later, the effect of the proposed reduction on your benefit might be different. Final 

calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 35 years of credited service under the Plan.

• You will be age 69 as of February 28, 2019. 

• The portion of your benefit that is based on disability is $3,619.08. 

• Your benefit is being paid as a 75% survivorship annuity. 

• You did not work at least 400 hours in 2015 or 2016. 

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $1,251.25. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 417
Plasterers Local 82

How Your Monthly Payments Would Be Affected

Your monthly benefit would not change under the proposed reduction.

*Due to the Plan’s contract with Principal, your benefit would not change.

Current benefit

$1,486.43

Proposed benefit*

$1,486.43

Age-Based Limitation – No Guarantee-Based Limitation – Retiree over 

age 80 

Estimate of Proposed Benefit for Example 9

Example #9

Appendix A Application Page 418
Appendix A Application Page 419

How Your Proposed Benefit Reduction Estimate Is Calculated

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

final benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. If 

the benefit reduction starts later, the effect of the proposed reduction on your benefit might be different. Final 

calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 40 years of credited service under the Plan.

• You will be age 75 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0.

• You did not work at least 400 hours in 2015 or 2016.

Because you will be 75 on February 28, 2019, your benefit reduction will be smaller than the 31% reduction that 

younger participants will have:

Current benefit —

Current benefit

times 

31%

(reduction if you were 

younger than 75)

x

Number of months beginning 

with March 2019 and ending 

with the month you turn 80 

divided by

60

(percent that represents how 

close you are to age 80)

= Reduced 

benefit

$2,645.67 —

$2,645.67

times

31%

=

$820.16

x

49 months

divided by

60

=

0.82

= $1,975.87

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $1,430.00. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 421

Appendix A Application Page 423

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 38 years of credited service under the Plan as of December 31, 2016.

• You will be age 62 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You worked at least 400 hours in 2015 or 2016.

The proposed reduction would affect the benefit you earned through December 31, 2016. Benefits earned after that 

date are not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated:

Benefit earned through December 31, 2016:

$5,571.60

Reduction:

$5,571.60 x 0.22 = $1,225.75

Reduced benefit = $5,571.60 – $1,225.75 = $4,345.85

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $1,358.50. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 425

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 35 years of credited service under the Plan.

• You will be age 64 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You worked at least 400 hours in 2015 or 2016.

Here is how this estimate was calculated:

Current Benefit:

$3,979.74

Reduction:

$3,979.74 x 0.22 = $875.54

Reduced benefit = $3,979.74 – $875.54 = $3,104.20

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $1,251.25. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 427

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 32 years of credited service under the Plan.

• You will be age 64 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You did not work at least 400 hours in 2015 or 2016.

Here is how this estimate was calculated:

Current Benefit:

$3,782.97

Reduction:

$3,782.97 x 0.31 = $1,172.72

Reduced benefit = $3,782.97 – $1,172.72 = $2,610.25

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $1,144.00. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 429

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 23 years of credited service under the Plan as of December 31, 2016.

• You will be age 50 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You did not work at least 400 hours in 2015 or 2016.

Here is how this estimate was calculated:

Benefit earned through December 31, 2016:

$4,178.37

Reduction:

$4,178.37 x 0.31 = $1,295.29

Reduced benefit = $4,178.37 – $1,295.29 = $2,883.08

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $822.25. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 431

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 12 years of credited service under the Plan as of December 31, 2016.

• You will be age 32 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You worked at least 400 hours in 2015 or 2016.

The proposed reduction would affect the benefit you earned through December 31, 2016. Benefits earned after that 

date are not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated:

Benefit earned through December 31, 2016:

$937.77

Reduction:

$937.77 x 0.22 = $206.31

Reduced benefit = $937.77 – $206.31 = $731.46

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $429.00. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 433

How Your Proposed Benefit Reduction Estimate Is Calculated

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

benefit calculation. This estimate assumes that the proposed benefit reduction starts on February 1, 2019. 

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

Final calculations will be made once the reduction is approved.

This estimate is based on the following information from Plan records:

• You have 14 years of credited service under the Plan as of December 31, 2016.

• You will be age 69 as of February 28, 2019.

• The portion of your benefit that is based on disability is $0. 

• You worked at least 400 hours in 2015 or 2016.

The proposed reduction would affect the benefit you earned through December 31, 2016. Benefits earned after that 

date are not included in the amounts shown on this statement and would not be affected by the reduction.

Here is how this estimate was calculated:

Benefit earned through December 31, 2016:

$371.75

Reduction:

$371.75 x 0.06 * = $22.31

Reduced benefit = $371.75 – $22.31 = $349.44

* Because your reduced benefit would have been less than 110% of the PBGC guaranteed benefit, your reduction has 

been limited to 6% instead of 22%.

PBGC Guarantees Your Benefit Up to a Limit

If the reduction in benefits is rejected, it’s important to note that your current benefit amount is available only until 

the Plan runs out of money (estimated to happen in 2034). 

If the Plan does not have enough money to pay benefits, your monthly benefit would then be paid by the PBGC, up to 

the amount it guarantees. Your current monthly benefit guaranteed by PBGC is estimated to be $317.38. 

However, there is concern about the health of the PBGC’s multiemployer plan program. If the PBGC program itself 

becomes insolvent, your benefit could be significantly less.

Appendix A Application Page 435
Plasterers Local 82 Pension Fund Voter’s Guide

Vote by [deadline]

Cast your vote on the proposed benefit reduction by [deadline]:

Phone: Call X-XXX-XXXX to vote by phone. 

 [any instructions we can provide?]

OR

Online: Go to www.XXXXXXX.com to vote online. 

 [any instructions we can provide?]

The proposed benefit reduction will go into effect February 1, 2019, unless a majority of participants reject it. 

Not voting has the same effect as voting yes. 

The vote is being run by a company selected by the Treasury Department to ensure the integrity of the voting 

process. 

Your Choice

Voting YES means Voting NO means 

• On February 1, 2019 monthly benefits for most 

participants will be lowered to prevent the Plan 

from running out of money.

• The monthly benefits for most participants who 

worked at least 400 hours in 2015 or 2016 will

be lowered by 22%. The benefits for most other 

participants will be lowered by 31%.

• Members who are age 80 or older on February 

28, 2019 will NOT have their monthly benefits 

lowered at all. And the portion of benefits 

related to disability are also protected. 

• Members who are between 75 and 80 on 

February 28, 2019 will have a smaller reduction 

in their benefits.

• NO benefits earned after January 1, 2017 will be 

lowered for any member. 

• Review pages x-x for statements for and 

against.

• There will be no reduction on February 1, 

2019, but the Plan will be on the path to 

running out of money in about 16 years 

(projected to be 2034). 

• When the Plan runs out of money, 

benefits will be paid by the PBGC and will 

be much lower than benefits will be if the 

members vote “yes” on the proposed 

reduction.

• When the Plan runs out of money, 

benefits will drop for everyone, no 

exceptions. 

• Review pages x-x for statements for and 

against. 

See the enclosed personalized benefit estimate for

how your benefit would change under the proposed reduction

or, if the Plan ran out of money and benefits were paid by the PBGC.

Appendix A Application Page 436
This voter’s guide provides information to help you make an informed decision on the proposed benefit reduction 

for the Plasterers Local 82 Pension Fund:

• About the Proposed Reduction

• Statement For the Reduction

• Statement Against the Reduction

• What’s Next

Please read this guide and see the enclosed benefit estimate before you make your decision.

About the Proposed Reduction

Unless rejected, effective February 1, 2019, benefits will be reduced as follows:

• For participants who worked at least 400 hours under the Plan in 2015 or 2016, there will be a 22% reduction 

of benefits earned through December 31, 2016

• For participants who did not work at least 400 hours under the Plan in 2015 or 2016, there will be a 31%

reduction of benefits earned through December 31, 2016. 

That means the amount of your benefit earned through December 31, 2016 will be multiplied by either 0.22 or 0.31

to calculate your reduction. Amounts earned on or after January 1, 2017 will NOT be reduced. (See the enclosed 

benefit estimate for your actual reduced benefit amount.)

As required by law, the following groups are treated differently:

• Participants or beneficiaries with benefits based on disability will have no reduction to the disability 

portion of their benefit. 

• Participants or beneficiaries who are at least age 80 as of February 28, 2019 will have no reduction. 

• Participants or beneficiaries who are at least age 75 as of February 28, 2019 will have a smaller benefit 

reduction. Their reduced benefit earned through December 31, 2016 would be calculated as follows: 

Benefit through

Dec. 31, 2016 — 

Benefit through

Dec. 31, 2016 times 

0.22 or 0.31

(benefit reduction if 

younger than 75)

X 

Number of months 

beginning with 

March 2019 and 

ending with the 

month the person 

turns 80

divided by

60

(percent that 

represents how 

close the person is 

to age 80)

There is no set date when the benefit reductions will end. However, the benefit reductions will be in effect only 

until the Plan is no longer projected to run out of money without the reductions in place. We expect reduced 

benefits to be in place for a long time. For some, that means reduced benefits for the rest of their retirement. For 

others, there’s at least a possibility that their benefit would come back up to the unreduced amount at some point in 

the future.

This proposed benefit reduction has been approved by the Secretary of Treasury, in consultation with the Pension 

Benefit Guaranty Corporation (PBGC) and the Secretary of Labor. 

See the enclosed benefit estimate for information about your benefit and how much 

it would be if reduced.

Appendix A Application Page 437
What if we do nothing?

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

the year 2034. This estimate is based on how much money the Plan is expected to receive and pay out each year. This 

projection, which is based on several assumptions, will change every year based on actual investment returns, plan 

contributions, and other experience. So the actual date could be sooner or later than 2034. 

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

Guaranty Corporation (“PBGC”) will be paid. You can find the amount of your benefit that is guaranteed by the PBGC 

on the enclosed benefit estimate.

If the PBGC runs out of money, benefits will likely be quite a bit lower than the PBGC-guaranteed amount shown.

Effects of the proposed benefit reduction

This reduction would take effect on February 1, 2019 and would apply to benefits earned before January 1, 2017: 

• For most retirees and beneficiaries receiving benefits, your monthly check would be lowered by 31% (or 22% if 

you worked at least 400 hours in 2015 or 2016) beginning February 1, 2019. If you’re between 75 and 80 on 

February 28, 2019, your reduction will be smaller. If you’re 80 or older on February 28, 2019, your monthly 

check will not change. If you are receiving disability benefits, that portion of your benefit will not change.

• For those not active in the Plan, but not yet receiving benefits, your vested benefit would be lowered by 31% 

(or 22% if you worked at least 400 hours in 2015 or 2016) beginning February 1, 2019. When you retire, your 

benefit would be based on that amount.

• For most active participants, on February 1, 2019 the benefit you earned as of December 31, 2016 would be 

lowered by 22%. You’ll continue to accrue new benefits after February 2019, though ― and this benefit 

reduction will not apply to benefits earned after January 1, 2017. 

See the enclosed benefit estimate for information about your benefit and how much it would be if reduced.

The Plan’s actuary certified that, with the reduction of benefits that the Board of Trustees has proposed, the Plan 

should not run out of money. This expectation is based on a number of assumptions; if reality differs significantly 

from these assumptions, the reduction might not work as intended. However, we have used realistic assumptions to 

give the Plan the best chance of success.

Statement in Favor of the Reduction

We, the Trustees of the Plasterers Local 82 Pension Fund, believe the Plan can be saved with this reduction. If we 

thought it was hopeless, we wouldn’t be going through all this. Our goal is to keep paying as much as we can in 

benefits for many years to come.

Our options were to try to save the Plan or let it run out of money. As we looked at both options, it became clear that 

we need to try to save the Plan. The chart below shows why we want to save the Plan and not let it run out of money. 

Try to save the Plan Let it run out of money

Benefits under the proposed reduction are higher 

than what you would receive from the PBGC. 

If we let the Plan run out of money, those receiving benefits 

now would get their full amount ― but only for a little while.

Everyone else would get lower benefits, or maybe nothing.

That hurts the actives the most, and they are already earning 

far lower benefits — and paying much higher contributions — 

than members did in the past.

The most prudent course of action is to do 

everything we can to keep the Plan from running out 

of money and keep paying benefits from this plan — 

even if that means paying them at a lower level.

PBGC benefits would be lower than benefits under this 

proposed reduction. And the PBGC multiemployer program 

itself is in trouble ― if it runs out of money, it is likely 

benefits would be even smaller.

In that case, it’s likely that only a fraction of the PBGC’s 

“guaranteed” benefits would be paid to plans that run out of 

money. 

Appendix A Application Page 438
Statement in Favor of the Reduction cont’d

Try to save the plan Let it run out of money

If we keep the Plan going, we have a better chance 

of maintaining a strong contribution base ― 

increasing our odds of being able to pay benefits for 

the long haul ― and active participants have a better 

chance of earning meaningful benefits in the future.

If the Plan runs out of money and goes to the PBGC, active 

participants may continue to earn benefits, but they wouldn’t 

mean much ― the most they could hope to receive would be 

the PBGC guaranteed level of benefits.

We still have assets at this time. If we lower benefits

now, we don’t run out of investments to earn money. 

The investment earnings pay for more benefits, and 

give us a fighting chance to restore the fund.

When the Plan runs out of money, we will get no investment 

earnings, and we will have no chance of being helped by any 

strong investment markets.

Under this proposal, the reduction applies to 

benefits earned through December 31, 2016, but any 

benefits earned after that won’t be affected by this 

benefit reduction.

The current level of benefits being earned is already 

low (and the contributions are high) compared to the 

benefits and contributions of the past. The benefits 

being earned by current actives are already reduced. 

We owe it to them to do everything we can to make 

sure some of the money they are paying into the 

fund is left to pay their benefits in the future.

If the Plan runs out of money, perhaps the hardest hit group 

would be current active participants, who have already made 

significant sacrifices. 

For example, in the early 2000s, a participant who worked 

1,500 hours at a $5 per hour contribution rate contributed 

$7,500 during the year and earned a monthly benefit of 

$232.50. 

In 2016, a participant who worked 1,500 hours at a $10.65 per 

hour contribution rate contributed almost $16,000 during the 

year and earned a monthly benefit of $63.75. 

The active participants have done what they can to save the 

Plan, but they simply can’t fix it on their own.

The proposed reduction would likely be in place for a 

number of years but would be lifted once the Plan is 

no longer projected to run out of money.

If the Plan goes to the PBGC, not only would benefits be lower 

than under the proposed reduction, but the decrease would 

be permanent.

Under the proposed reduction, the people who are 

least able to bounce back, including disabled 

members and retirees over 80, are protected (by 

law).

If the Plan runs out of money, benefits are cut across the 

board. No population is protected from reductions.

Appendix A Application Page 439
Statement Against the Reduction

[to be completed]

Appendix A Application Page 440
What’s Next

[Deadline]: Last day to vote

[7 days after deadline]: Results of the vote announced

The Trustees will mail an update with the results of the vote

following the announcement

February 1, 2019: Reduction takes effect, unless rejected

Appendix A Application Page 441







Appendix B 

8 

 The rationale for the assumptions for contribution rates is that the rates assumed reflect the current 

rehabilitation plan schedule. The Trustees determined that the recent journeyman contribution rate of 

$10.75 per hour could not be increased without decreasing the number of hours of contributions. As a 

result, the most recent rehabilitation plan update reduced this rate from $10.75 per hour to $8.75 per 

hour to help increase contribution base units. However, the Trustees included language that will 

increase the rate back to $10.75 if hours do not increase enough to offset this reduction (determined 

to be 135,000). 

 The Plan experienced one withdrawal in the last 5 years due to an employer going out of business. 

As a construction industry plan, withdrawal liability is only assessed if the employer continued to do 

work on a non-union basis in the geographic area of the Trust. It is our understanding that the Plan 

has never received any withdrawal liability payments. 

Take-up rate with respect to selection of benefit/contribution schedules

 The rehabilitation plan had a single schedule, the default schedule. All employers are in the same 

rehabilitation schedule. 

Projection methodology

 No approximation techniques aside from the approximations inherent in actuarial assumptions were 

used when developing projections. 

 The projected benefit payments for future service worked by current actives and future new entrants 

were developed assuming a level active population based on the 88 active participants included in 

the January 1, 2017 actuarial valuation. The projections in this application assume 110,000 hours per 

year, which reflects an assumed decreased in active participants in 2018 and beyond. As a result, 

the projected benefit payments for benefits earned on or after January 1, 2018 were adjusted 

proportionately to reflect the assumed reduction in population.

Part 3 – Additional disclosures relating to use of different assumptions 

The following assumptions differed between the projections produced under section 4.02(1) and 3.01, 

and an explanation for why they differed is provided below: 

 Investment return assumption – For the purpose of the projections under 3.01, we used the 

investment return assumption used in the January 1, 2017 valuation of 6.25%. This is a single rate 

long term assumption developed after considering several sources, including Milliman’s Capital 

Market Assumptions. The investment return assumption used to develop the projections described in 

section 4.02(1) was developed using short term and long term assumptions to reflect different return 

expectations over different periods based on the 2017 Horizon Survey of Capital Market 

Assumptions, which is a widely used survey that has been deemed reasonable in similar 

circumstances. 

 Administrative expenses – Projections produced for both sections 3.01 and 4.02(1) use the same 

base administrative expenses assumption of $200,000 for the plan year beginning January 1, 2017 

and an annual increase assumption of 1.5% per year; however, the projections used for 4.02(1) also 

assume a one-time increase in administrative expenses of $150,000 in 2018 to reflect the estimated 

cost of this application. 

 New entrants – For the purpose of the projections included in 3.01, no new entrant assumption was 

used. These projections assumed a level normal cost each year, but did not include additional benefit 

Application Page 449
Appendix B 

9 

payments for new entrants. The projections produced for 4.02(1) use the new entrant assumption 

described above. This is a more robust assumption developed to meet the requirements of MPRA. 

In addition, the following underlying valuation assumptions differed between the 2017 actuarial valuation 

used as the basis for the projections under section 3.01 and the benefit suspension valuation used as the 

basis for projections under section 4.02(1). 

 Forms of benefit – the projections under 3.01 were based on an assumption that all participants 

choose a single life annuity, while the projections under 4.02(1) reflected an assumption that 80% of 

married participants would choose the 100% joint and survivor annuity. This refinement was made to 

improve the cash flow projections used for solvency projections and meet the requirements of MPRA. 

 Retirement age for vested terminated participants – the projections under 3.01 were based on an 

assumption that vested terminated participants retired at the Plan’s normal retirement age, while the 

projections under 4.02(1) reflected an assumption that vested terminated participants would retire 

under the same retirement rates as active participants. This refinement was made to improve the 

cash flow projections used for solvency projections and meet the requirements of MPRA. 

 Assumed hours – the projections under 3.01 were based on a tiered hours assumption that 

anticipated active participants would work 1,200, 1,450, or 1,700 hours based on their years of 

service, while the projections under 4.02(1) reflected an assumption that active participants would 

work 1,450 hours per year regardless of service. This change is immaterial to the results, but was 

made in order to incorporate the new entrant assumption into the projections. 

 Disability decrement - the projections under 3.01 were based on the 2017 actuarial valuation, which 

did not include a disability decrement assumption from active service, while the projections under 

4.02(1) are based on calculations that did include a disability decrement assumption. This refinement 

was made to improve the cash flow projections used for solvency projections and meet the 

requirements of MPRA. 

Application Page 450