APPENDIX C - CHECKLIST - IS THE SUBMISSION COMPLETE? 

Instructions. The application must include a completed checklist placed on top of the 

application. This will help ensure that the application is complete. Answer each question 

in the checklist by circling Y for yes, N for no or N/A for not applicable, as appropriate, 

in the blank next to the item. Also insert in the appropriate blank next to each item the 

page number or numbers where the item appears in the application. 

APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR THE NEW YORK 

STATE TEAMSTERS CONFERENCE PENSION AND RETIREMENT FUND 

Response Item Description of item Page number 

- number in application 

IWoY 1. Does the application include an original signature of the plan sponsor p.40 

or an authorized representative of the plan sponsor? See section 2.01. 

N/A 

I~ 2. Does the application include a description of the proposed benefit p. 2 

suspension - calculated as if no other limitations apply- that includes: 

N/A • the suspension's effective date (and its expiration date, 

if applicable), 

• whether the suspension provides for different treatment 

of participants and beneficiaries, 

• a description of the different categories or groups of 

individuals affected, and 

• how the suspension affects these individuals 

differently? See section 2.02 . 

..-.... 

~ 3. Does the application include a penalties-of-perjury statement signed by an p.3 

authorized trustee on behalf of the board of trustees? See Section 2.03. Exhibit 1 

N/A 

.:;::;,.... 

~ 4. Does the application include a statement, signed by an authorized trustee p.3 

on behalf of the board of trustees, acknowledging that the application and Exhibit 2 

N/A the application's supporting material will be publicly disclosed on the 

Treasury Department's website? See section 2.04. 

~ 5. Does the application include the plan actuary's certification of critical p.4 

and declining status and the supporting illustrations, including: Exhibit 3 

N/A • the plan-year-by-plan-year projections demonstrating 

projected insolvency during the relevant period, and 

• separately identifying the available resources (and the market 

value of assets and changes in cash flow) during each of 

those years? 

See section 3.01. 

--""' 

I~ 6. Does the application describe the assumptions used, including the p.4 

new entrant profile, the total contribution base units, and the average Exhibit 3 

N/A contribution rates? See section 3.01. 
-

I~ 7. Does the application include the plan actuary's certification that the plan p.4 

is projected to avoid insolvency if the suspension takes effect and the Exhibit 4 

N/A supporting illustrations, including: 

• the plan-year -by-plan-year projections demonstrating 

projected solvency during the relevant period, 

• a description of the assumptions used, including the new 

entrant profile, the total contribution base units, and the average 

contribution rates, and 

• separately identifying the available resources (and the market 

value of assets and changes in cash flow) during each of 

those years? 

See section 3.02. 

_..-.... 

IWoY 8. Does the application include the plan sponsor's determination of p. 5 

projected insolvency that includes the documentation set forth in section 5 Exhibit 5 

N/A of the revenue procedure? See section 3.03. 

~ 

I~ 9. Does the application include a demonstration that the limitations on p.6 

individual suspensions are satisfied, including calculations regarding: Exhibit 6 

N/A • the guarantee-based limitation, 

• the disability-based limitation, and 

• the age-based limitation? 

See section 4.01. 

-

I~ 10. Does the application include a demonstration that the proposed p.6 

suspension is reasonably estimated to achieve the level necessary to Exhibit 7 

N/A avoid insolvency for the extended period, including illustrations regarding 

the plan's solvency ratio and available resources? See section 4.02(1). 

-

~ 11. Does the application include the required illustration utilizing stochastic p. 7 

projections? (This illustration is not required if the plan is not required to Exhibit 7 

N/A appoint a retiree representative under§ 432(e)(9)(B)(v)(l) and stochastic 

projections were not used in making the required determination.) See 

section 4.02(2). 

-

~ 12. Does the application include a demonstration that the proposed p. 7 

suspension is not projected to materially exceed the level necessary to Exhibit 8 

N/A avoid insolvency, including illustrations regarding the plan's solvency 

ratio and available resources? See section 4.03 . 

..;::...... 

~ 13. Does the application include a demonstration that the pp. 8-12 

No proposed suspension is equitably distributed, including: Exhibit 9 

N/A • information on the effect of the suspension on the plan in the 

aggregate, 

• information on the effect of the suspension for different 

categories or groups, 

• a list of the factors taken into account, 

• an explanation of why none of the factors listed in § 

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

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

listed in § 432(e)(9)(D)(vi), an explanation why the factor is 

relevant, and 

• how any difference in treatment among categories or groups of 

individuals results from a reasonable application of the relevant 

factors? 

See section 4.04. 
-

~ 14. Does the application include a copy of the notices (excluding personally pp. 12-13 

identifiable information) that meet the requirements under§ Appendix A 

N/A 432(e)(9)(F)? See section 4.05(1 ). 

- (~ 15. Does the application include a description of the efforts that are being p. 13 

taken to contact participants, beneficiaries in pay status, and 

N/A alternate payees? See section 4.05(2). 

Yes 16. Does the application describe the steps the plan sponsor has taken to NA 

I~ ensure that notices delivered electronically are reasonably accessible 

to the recipients? See section 4.05(3) 

I~ 17. Does the application include a list of each employer who has an p. 14 

obligation to contribute under the Plan and each employee organization Exhibit 10 

N/A representing participants under the Plan? See section 4.05(4). 

~ 

- 18. Does the application include information on past and current measures pp. 15-19 

No taken to avoid insolvency? See section 5.01. 

N/A 

....... 

~ 19. Does the application include the plan information required by section pp. 19-24 

5.02? 

N/A 

~ 

~ 20. Does the application describe how the plan sponsor took into account- pp. 24-33 

or did not take into account- the factors listed in section 5.02 in the 

N/A determination that all reasonable measures were taken to avoid 

insolvency? See section 5.03. 

-... 

I~ 21. Does the application describe how the plan sponsor took into account- pp. 24-33 

or did not take into account - in the determination that all reasonable 

N/A measures have been taken to avoid insolvency the impact of: 

• benefit and contribution levels on retaining active participants 

and bargaining groups under the plan, and 

• past and anticipated contribution increases under the plan on 

employer attrition and retention levels? 

See section 5.03. 

-

~ 22. Does the application include a discussion of any other factors the plan pp. 33-34 

sponsor took into account including how and why those factors were 

N/A taken into account? See section 5.04. 

-

I~ ~3. Does the application include a copy of the proposed ballot, excluding the p.35 

information regarding the statement in opposition, the individualized Exhibit 11 

N/A estimate, and the voting procedures? See section 6.01. 

~ 

~ 24. Does the application indicate whether the plan sponsor is requesting p.35 

approval from PBGC of a proposed partition under section 4233 of NA 

N/A ERISA? See section 6.02. 

Yes ~5. If the answer to item 24 is yes, does the application specify the effective NA 

~ date of the proposed partition and include a plan-year-by-plan-year 

projection of the amount of the reduction in benefit payments attributable 

to the partition? See section 6.02. 
c:::? 26. Does the application describe the plan's experience with certain critical p. 35 

assumptions, including a disclosure for each of the 10 plan years Exhibit 12 

N/A immediately preceding the application that separately identifies: 

• total contributions, 

• total contribution base units, 

• average contribution rates, 

• withdrawal liability payments, and 

• the rate of return on plan assets? 

See section 6.03. 

~ 

~ 27. Does the application include deterministic projections of the sensitivity of p.35 

the plan's solvency ratio throughout the extended period by taking into Exhibit 13 

N/A account the more conservative assumptions of investment experience 

and future contribution base units than assumed elsewhere in the 

application? See section 6.04. 

~ 

- 28. Does the plan include deterministic projections for each year in p.35 

No the extended period of: Exhibit 14 

N/A • the value of plan assets, 

• the plan's accrued liability, and 

• the plan's funded percentage? 

See section 6.05. 

-- ~ 29. Does the application include the plan sponsor's representation that, if it p. 36 

receives the Treasury Department's final authorization to suspend and Exhibit 15 

N/A then chooses to implement the suspension, it will also amend the plan: 

• to indicate that the suspension will cease upon the plan 

sponsor's failure to determine that both all reasonable measures 

continue to be taken to avoid insolvency and that the plan would 

not be projected to avoid insolvency without a suspension, 

• to require that any future benefit improvements must 

satisfy§ 432(e)(9)(E), and 

• to specify that the plan sponsor will not modify these 

amendments, notwithstanding any other provision of the 

plan document? 

See section 6.06. 

Wcf 30. Does the application indicate whether the plan is a plan described in p.36 

§ 432(e)(9)(D)(vii) and, if so, how is that fact reflected in the NA 

N/A proposed benefit suspension? See section 6.07. 

~v 31. Does the application include the required plan sponsor p. 37 

information, including 

N/A • name 

• address 

• telephone number 

• email address 

• fax number 

• employer identification number (EIN) and 

• 3-digit plan number 

(PN)? See section 7.01. 

_::::-.. 

~ 32. Does the application include the required plan identification p.37 

information? See section 7.02. 

N/A 
Redacted by the U.S. Department of the Treasury
DB1/ 88178397.10

New York State Teamsters Conference

Pension and Retirement Fund’s

Application to the Department of the Treasury

for

Approval of Suspension of Benefits

under the

Multiemployer Pension Reform Act of 2014

Dated: August 31, 2016
1

SECTION 1. BACKGROUND AND PURPOSE

Pursuant to Internal Revenue Service Revenue Procedure 2016-27 (the “Revenue

Procedure”) and the Department of the Treasury’s Final regulations issued under Section

432(e)(9) of the Internal Revenue Code of 1986 (the “Code”) and published in the Federal

Register on April 28, 2016 (collectively, the “Regulations”), the Board of Trustees (“Trustees”)

of the New York State Teamsters Conference Pension and Retirement Fund (the “Plan”) submits

this Application, and the accompanying Exhibits and Appendices, to the Secretary of the

Treasury for approval of a suspension of benefits.

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

approve an application for the approval of suspension of benefits upon finding that the Plan is

eligible for the benefits suspension and has satisfied the criteria set forth in subparagraphs (C),

(D), (E), and (F) of Section 432(e)(9) of the Code. As set forth below, the Plan is eligible to

suspend benefits and has satisfied each of the enumerated criteria under the Regulations.

Therefore, the Plan respectfully requests that the Secretary approve this Application to suspend

benefits accordingly.
2

SECTION 2. APPLICATION PROCEDURES

.01 Plan Sponsor submission. The Trustees, as Plan Sponsor, submit this Application

for approval of a proposed benefit suspension under Section 432(e)(9). This Application

is signed and dated by both a Union and an Employer Co-Chair Trustee, who are both

authorized to sign and current members of the Board of Trustees. The proposed

suspension of benefits is sometimes referred to herein as the “Pension Preservation Plan”

or “PPP.”

.02 Terms of Plan’s proposed benefit suspension.

Effective Date. The effective date of the proposed suspension is July 1, 2017.

Expiration Date. The proposed suspension will not expire by its own terms.

Different Treatment of Participants and Beneficiaries. The Trustees’ proposed

suspension provides for different treatment between only two categories of Plan

Participants: Active Participants and Non-Active Participants. Active

Participant is defined as a Participant who (1) has not retired and entered pay

status as of June 30, 2017 and (2) had at least 500 hours of employer contributions

submitted to the Plan on his behalf in the 2015 Plan Year, in the 2016 Plan Year,

or in the 2017 Plan Year before July 1, 2017. Non-Active Participant is defined

as any Participant who does not meet the definition of Active Participant and

includes retirees, beneficiaries, and terminated vested Participants.1

Active Participants: The proposed benefit suspension for Active

Participants will be a 20% reduction in the accrued monthly benefit as of

June 30, 2017, subject to the limitations described in Sections

432(e)(9)(D)(i), (ii) and (iii). The formula used to determine the amount

of the proposed suspension for Active Participants is based on the 20%

reduction percentage being applied to each Active Participant’s monthly

benefit amount.

Non-Active Participants: The proposed benefit suspension for NonActive Participants will be a 31% reduction in the accrued monthly benefit

as of June 30, 2017, subject to the limitations described in Sections

432(e)(9)(D)(i), (ii) and (iii). The formula used to determine the amount

of the proposed suspension for all Non-Active Participants is based on the

31% reduction percentage being applied to each Non-Active Participant’s

monthly benefit amount.

1 The Plan is a calendar year plan, effective January 1 through December 31.
3

.03 Penalties of perjury statement. See Exhibit 1.

.04 Public disclosure statement. See Exhibit 2.
4

SECTION 3. DEMONSTRATION THAT THE PLAN IS ELIGIBLE FOR

SUSPENSION

.01 Plan actuary’s certification of Critical and Declining status. See Exhibit 3 for a

certification from the Plan’s actuary required under Section 432(b) that the Plan is in

critical and declining status as defined in Section 432(b)(6) for the Plan Year

commencing 2016. Included with this certification is documentation supporting the

actuarial certification of status, including a Plan Year-by-Plan Year projection of the

Plan’s available resources and the benefits under the Plan, demonstrating that the Plan is

projected to become insolvent during the 20272Plan Year. The documentation includes a

description of each of the assumptions used, including the new entrant profile, the total

contribution base units (hours) and average contribution rates. The Plan Year-by-Plan

Year projection separately identifies the market value of assets as of the beginning and

end of the 2015 Plan Year through the 2027 Insolvency Year, and the following cashflow items for those years: (1) contributions; (2) withdrawal liability payments; (3)

benefit payments; separately identifying benefit payments with respect to current retirees

and beneficiaries, terminated vested participants who are not currently receiving benefits,

currently active participants, and future new entrants; (4) administrative expenses; and (5)

investment returns.

.02 Plan actuary’s certification that the plan is projected to avoid insolvency. See

Exhibit 4 for a certification from the Plan’s actuary under Section 432(e)(9)(C)(i) that

the Plan is projected to avoid insolvency within the meaning of Section 418E taking into

account the proposed benefit suspension, and assuming that the proposed suspension

continues indefinitely. Included with this certification is documentation supporting the

certification, including a Plan Year-by-Plan Year projection of the available resources of

the Plan within the meaning of Section 418E(b)(3) and the benefits under the Plan

demonstrating the avoidance of insolvency of the Plan through the extended period of 32

Plan Years, which would be the 2048 Plan Year. The documentation includes a

description of each of the assumptions used, including the new entrant profile, the total

contribution base units (hours) and average contribution rates. Also included with this

certification is the Plan’s Plan Year-by-Plan Year projection that separately identifies the

market value of assets as of the beginning and end of the initial period and each

subsequent Plan Year in the extended period and the following cash-flow items for the

initial period and each of those years: (1) contributions; (2) withdrawal liability

payments; (3) benefit payments, separately identifying benefit payments with respect to

current retirees and beneficiaries, terminated vested participants who are not currently

receiving benefits, current active participants, and future new entrants; (4) administrative

expenses; and (5) investment returns.3

2 The actuary subsequently determined that the Plan would become insolvent in 2026. See Exhibit 5.

3

For this purpose, the initial period begins on the first day of the calendar quarter in which the

Application is submitted (July 1, 2016) and ends with the last day of the Plan Year that includes that first

day (December 31, 2016).
5

.03 Plan sponsor’s determination of projected insolvency. The Trustees determined

under Section 432(e)(9)(C)(ii), after a review of all available information and possible

Plan changes, that the Plan is not projected to avoid insolvency if benefits are not

suspended, even though the Trustees have taken all reasonable measures to avoid

insolvency. The Trustees made this formal determination at their May 19 - 20, 2016

meeting. See Exhibit 5 for information which supports the Trustees’ determination of

projected insolvency. See also Exhibit 3, Appendix C for additional actuarial

information in support of the Trustees’ determination.

The Trustees have included additional documentation and information in Section 5 of this

Application illustrating their determination of projected insolvency and the reasonable

measures taken into account in making the determination that the proposed suspensions

are necessary to avoid insolvency.
6

SECTION 4. DEMONSTRATION THAT THE PLAN’S PROPOSED

SUSPENSION SATISFIES THE STATUTORY REQUIREMENTS

.01 Demonstration that limitations on individual suspensions are satisfied. See

Exhibit 6 for a demonstration of how the proposed suspension satisfies the limitations

described in Sections 432(e)(9)(D)(i), (ii) and (iii) as required under the Revenue

Procedure. Exhibit 6 includes:

(1) A sample calculation applying the guarantee-based limitation under

§432(e)(9)(D)(i) for an individual in each category or group identified in

accordance with the Revenue Procedure.

(2) A sample calculation applying the disability-based limitation under

§432(e)(9)(D)(iii) for an individual in each category or group identified in

accordance with the Revenue Procedure. Additionally, see Exhibit 16, at page

40 for a description of each benefit based on disability under the Plan that is paid

to an individual under the Plan (including disability benefits that are not available

to newly disabled participants).

(3) A sample calculation applying the age-based limitation under

§432(e)(9)(D)(ii) for an individual in each category or group identified in

accordance with the Revenue Procedure.

.02 Demonstration that the proposed suspension is reasonably estimated to enable the

plan to avoid insolvency. See Exhibit 7 for a demonstration that, in accordance with

Section 432(e)(9)(D)(iv), the proposed benefit suspension is reasonably estimated to

enable the Plan to avoid insolvency. Exhibit 7 includes:

(1) An illustration, prepared on a deterministic basis, showing that:

(a) For each Plan Year during the extended period described in

§1.432(e)(9)-1(d)(5)(ii)(C), the plan’s solvency ratio – the ratio of the

Plan’s available resources (as defined in § 418(E)(b)(3)) to the scheduled

benefit payments under the Plan for the Plan Year – is projected on a

deterministic basis to be at least 1.0.

(b) The Plan’s projected funding percentage at the end of the extended

period is less than or equal to 100 percent, and neither the Plan’s solvency

ratio nor its available resources are projected to decrease in any of the last

five Plan Years of the extended period.
7

(2) An illustration, using stochastic projections that reflect variance in investment

return, that the probability the Plan will avoid insolvency throughout the extended

period as result of the proposed suspension is greater than 50 percent.

(3) A description of each assumption used, including:

(a) An explanation of the information and analysis that led to the selection

of the actuarial assumption used for the deterministic projections under

Section 4.02(1) of the Revenue Procedure as it differs from that used

under Section 3.01 of the Revenue Procedure.

(b) With respect to stochastic projections described in Section 4.02(2) of

the Revenue Procedure, the assumed mix of assets (and how it compares

with the current mix of assets), the distribution of returns for each asset

class, and the correlation among those rates of returns and any other

economic variables in the projections.

(c) An explanation of the information and analysis that led to the selection

of the actuarial assumption used for stochastic projections described in

Section 4.02(2) of the Revenue Procedure as it differs from that used for

deterministic projections described in Section 4.02(1) of the Revenue

Procedure.

.03 Demonstration that the proposed suspension is reasonably estimated to not

materially exceed the level necessary to avoid insolvency. See Exhibit 8 for a

demonstration that, in accordance with Section 432(e)(9)(D)(iv), the proposed benefit

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

the Plan to avoid insolvency. The demonstration includes an illustration, prepared on a

deterministic basis, of the Plan’s available resources and solvency ratio as described in

Section 4.02(1) of the Revenue Procedure (and also an illustration of the probability that

the Plan will avoid insolvency prepared using stochastic projections, as described in

Section 4.02(2) of the Revenue Procedure) showing the proposed suspension would not

reasonably be estimated to avoid insolvency if the dollar amount of the proposed

suspension for each participant and beneficiary were reduced (but not below zero) by the

greater of:

(1) Five percent of the reduction in the periodic payment proposed for that

participant or beneficiary; or

(2) Two percent of the participant’s or beneficiary’s periodic payment

determined without regard to the reduction proposed in the application.
8

.04 Demonstration that the proposed benefit suspension is distributed equitably. In

accordance with Section 432(e)(9)(D)(vi), the proposed benefit suspension is distributed

in an equitable manner across the Plan’s participant and beneficiary population.

(1) See Exhibit 9 for a demonstration of the following:

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

average monthly benefit before the suspension; the average monthly

benefit after the suspension (determined taking into account the individual

limitations); and the aggregate present value of the reduction in benefits for

all individuals.

(b) The distribution of the benefit suspension for the requested

demonstrations under this section. The demonstration shows a count of

individuals whose benefits are not reduced, and whose benefits are

reduced by a percentage that falls within a series of ranges that do not

exceed 10%. This information is shown on an aggregate basis and as

between the Active and Non-Active Participant groups.

(2) Since the proposed suspension will be implemented differently between two

different groups, Active Participants and all Non-Active Participants, the

Application includes the following information:

(a) The information described in Sections 4.04(1)(a) and (b) above for

each such category or group, which is in Exhibit 9.

(b) The factors the Trustees considered in designing the proposed benefit

suspensions to be distributed in an equitable manner across the

Participant and beneficiary population, which include:

 Accelerating employer withdrawals from the Plan, increasing the

risk of additional benefit reductions for participants in and out of

pay status;

 Negative reaction by Active Participants that would further

prompt withdrawals of Active Participant groups and contributing

employers, and Active Participants reasonably likely to withdraw

support;

 History of benefit reductions for Active Participants;

 Amount of benefit;

 Discrepancies/relative benefits as between Active Participants and

Non-Active Participants, including subsidized benefits; and

 Differences in historical employer contribution rates/increases as

between Active Participants and Non-Active Participants.

(c) Factors listed in Section 432(e)(9)(D)(I) through (XII) were taken into

account in designing the proposed suspensions.
9

(d) After thorough consideration of the above factors, the Plan proposes a

different suspension in benefits for two different groups: Active

Participants and Non-Active Participants. The Trustees have proposed

different suspensions for these two groups and designed them equitably

based on a reasonable application of relevant factors.

First, the Plan will not survive unless it retains its Active Participant

population and the corresponding employer contributions in the Plan. As

discussed in more detail later in this Application, employers and

bargaining unit groups have left the Plan at an alarming rate over the last

decade as contribution rates have steadily increased and the Plan has

repeatedly reduced benefits for Active Participants. To stop this trend,

the Plan must demonstrate to employers and Active Participants that there

is an end in sight for continued benefit reductions and contribution

increases, and that the Plan will offer competitive retirement benefit

options in exchange for the rates at which employers currently are

contributing. Failing to provide a competitive pension benefit, the

Trustees fear – and history has demonstrated – will result in more

employers and bargaining groups withdrawing from the Plan leading to a

decreased Active membership and less employer contributions.

The proposed suspensions in this Application (together with the Trustees’

communications to, and informational meetings with, Active Participants)

demonstrate to Active Participants that a final 20% reduction in their

benefits, together with a 31% reduction to Non-Active Participants are

not only projected to save the Plan, but will allow Active Participants to

continue accruing benefits at the same rate they have since 2011. The

Active Participants have never previously been provided with such a

projection – no such projection was available - because the law prohibited

reductions to participants in pay status. The Active Participants can now

see there is a reason to remain in the Plan. The Trustees determined that

reducing Active Participants’ benefits by 20% and continuing benefit

accruals will make the Plan more attractive to Active Participant groups

and will result in their voting in favor of the proposed suspensions and

against any potential employer-negotiated withdrawal.

Likewise, the benefit suspensions and contribution increases provide

employers with more specific information about their future economic

obligations to the Plan. Contributing employers will know that future

contribution increases will not only be less than what are currently

required under the Plan’s Rehabilitation Plan, but will cease all together

in 15 years. As is discussed later in the Application, the contribution rate

increases required under the Rehabilitation Plan are not sustainable; the

contribution rate increases set forth in this Application are sustainable,

realistic, and will provide an incentive for employers not to withdraw.
10

Additionally, in considering the different suspension percentages, the

Trustees considered relative benefit levels and previous benefit reductions

for Active Participants. As outlined in detail in Section 5, the Active

Participant population has already incurred several significant benefit

reductions since 2004. The Trustees cut accruals by 50% in 2004. The

Trustees eliminated most adjustable benefits and early retirement

subsidies for Active Participants under the Rehabilitation Plan, and

participants working under certain alternative schedules have been forced

to divert wages to pay for remaining early retirement subsidies.

Prior to the passage of the Multiemployer Pension Reform Act (MPRA),

federal law prohibited the Plan from reducing or modifying vested

accrued benefits. This meant that all pension reductions to meet Pension

Protection Act (PPA) requirements and to address the Plan’s funding

issues were made to Active Participants’ benefits. Accordingly, the

Trustees believe the prior reductions for Active Participants must be

given great weight when considering the equitable distribution of the

proposed suspensions between the Active and Non-Active Participants.

The proposed suspension reduction percentages for each group – 20% for

Actives and 31% for Non-Actives – were also designed and tested to

ensure the difference amounted to an equitable distribution when

considered against the relevant factors. Specifically, the Trustees

considered the comparative aggregate savings to the Plan from the benefit

suspensions between the two groups, and determined that the chosen

percentages amounted to similar total savings in liability to the Plan after

considering the previous benefit reductions to Active Participants under

the Rehabilitation Plan and the pre-PPA benefit reductions. Additionally,

the Trustees considered the practical effect on the benefit calculation for

each group, and concluded that the selected percentages yielded a

reasonably comparable benefit. These considerations are discussed

below.

Considering the relative aggregate liability reduction between the two

groups, the decrease in the Plan’s actuarial liability as a result of the

benefit suspensions for retirees and beneficiaries is approximately $497

million. The corresponding decrease in liability to the Plan for Active

Participant benefit suspensions is approximately $130 million. See

Exhibit 9.

In addition to the reduction in liability for Active Participants associated

with the proposed benefit suspensions, the Trustees also considered the

previous subsidy reductions for Actives under the Rehabilitation Plan.

The decrease in liability as of January 1, 2011 due to the adjustable

benefits reduced as part of the Rehabilitation Plan resulted in a decrease

in Plan liabilities of approximately $190 million. See Exhibit 21,

Actuarial Valuation as of January 1, 2015 at page 17. With interest to
11

the date of suspension, the value of the reduction in adjustable benefits

would be greater than $190 million. Additionally, as a result of the

Rehabilitation Plan benefit reductions, the value of annual benefit

accruals was reduced by approximately $20 million per year. Since the

Trustees adopted the Rehabilitation Plan in 2011, the loss of benefits

earned by Active Participants is approximately $125 million (estimated to

be over $160 million with interest). Lastly, the value of annual benefit

accruals was significantly decreased in 2004 from 2.6% of contributions

to 1.3% of contributions. This change in future accruals reduced the value

of annual benefit accruals by approximately $25-$30 million dollars per

year. See Exhibit 21, Actuarial Valuation as of January 1, 2015,

Appendix C for benefit accrual information. Combining the reduction

in liability associated with the proposed suspensions, the elimination of

subsidies under the Rehabilitation Plan, and the prior reductions in benefit

accruals, the total reduction in liability for Active Participants is

consistent with, or possibly greater than the reduction in liability

associated with Non-Active Participants under the proposed suspensions.

The Trustees believe the close comparison in liability savings

demonstrates that the different benefit suspension percentages are an

equitable distribution between Actives and Non-Actives.

In determining whether the proposed suspensions are equitable among the

two groups, the Trustees also reviewed how the relative suspensions

affect participant benefits in each group. Specifically, they compared

Non-Active Participants who retired with 30 years of service to Active

Participants with varying credit to date, but who will retire in the future

with 30 years of service. Specifically, a retiree with over 30 years of

service is estimated to have a monthly benefit of $5,000 before any

reduction for form of payment as of July 1, 2017. Under the proposed

suspension, this retiree’s benefit would be reduced to $3,450 after a 31%

reduction.

By comparison, an Active Participant who currently has 20 years of

service will retire after 30 years of service with an estimated monthly

benefit of $4,100. With a 20% benefit suspension (on the portion of the

accrued benefit earned prior to July 1, 2017), this Active Participant

would have a reduced benefit of $3,490. Using another comparison, an

Active Participant with 10 years of service and 20 years of future service

will have a total estimated monthly benefit of $3,500. After a 20%

benefit suspension (on the portion of the accrued benefit earned prior to

July 1, 2017), this Active Participant would have a reduced benefit

amount of $3,240. Lastly, a newly hired Active Participant (not subject to

suspension) with 30 years of future service will have a total estimated

monthly benefit of $3,350. These examples are shown in the table below.
12

Status

Service

at 2017

Benefit at

2017

Proposed

Suspension

Benefit at

2017 After

Suspension

Future

Service

Future

Accruals

Total Benefit

After

Suspension

Retired 30+

Years

$5,000 31% $3,450 0 Years $0 $3,450

Active 20 Years $3,050 20% $2,440 10 Years $1,050 $3,490

Active 10 Years $1,300 20% $1,040 20 Years $2,200 $3,240

Active 0 Years $0 20% $0 30 Years $3,350 $3,350

Although this example is based on the accruals of a UPS full-time

employee, there would be a similar comparative result using participants

working for employers with lower contribution rates. Because the Plan’s

benefits are based to a large extent on the employer’s contribution rate,

the dollar amount of the benefits would be similarly lower for both the

retired and active examples.

The analysis of relative benefits strongly supports the Trustees’

determination that the proposed benefit suspensions are equitably

distributed across the participant and beneficiary population. Although

the 31% reduction for Non-Active Participants, such as retirees, is larger

than the 20% for Active Participants, the percentages produce a

reasonably comparable benefit between the two groups.

.05 Notices.

The following describes the Trustees’ method for satisfying the notice

requirements of Section 432(e)(9)(F).

(1) Individual Notices.

See Appendix A for each type of actual notice that will be given to each

participant, beneficiary, and alternate payee under the Plan. The Plan has

included the following eight (8) sample actual notices:

1. Participant, beneficiary, alternate payee in pay status subject to

suspensions.

2. Participant, beneficiary, alternate payee in pay status with Social

Security benefit leveling subject to suspensions.
13

3. Participant, beneficiary, alternate payee below Normal Retirement

Date, not in pay status, and subject to suspensions.

4. Participant, beneficiary, alternate payee over Normal Retirement Date,

not in pay status, and subject to suspensions.

5. Participant, beneficiary, alternate payee under age 80 and protected

from suspensions by the PBGC guarantee-based limitation.

6. Participant, beneficiary, alternate payee over age 80 and protected

from suspensions by the age-based limitation.

7. Participant, beneficiary, alternate payee protected by the disabilitybased limitation.

8. Participant, beneficiary, alternate payee partially protected by the

PBGC guarantee-based limitation.

(2) Efforts made to contact Participants, Beneficiaries and Alternate Payees.

The Trustees will make all reasonable efforts to contact all participants,

beneficiaries of deceased participants, and alternate payees of the Plan

(regardless of whether their benefits are proposed to be suspended)

pursuant to the Treasury’s Final Regulations and in satisfaction of their

fiduciary duties under ERISA. Specifically, the Trustees will provide

notice to the last known address of the participant, beneficiary or alternate

payee on file with the Plan, using the same address the Trustees used to

distribute the Plan’s most recent annual funding notice. If that notice is

returned as undeliverable, the Trustees will contact the Teamster local

unions representing Participants in the Plan in an attempt to locate those

missing individuals for whom the notice was returned as undeliverable.

Further, if still necessary to locate missing individuals, the Trustees will

request contact information from the plan administrators of any other

employee benefit plans that the Trustees reasonably believe may have

information useful for locating the missing individuals. Lastly, the

Trustees will then use an internet search tool, a credit reporting agency

and a commercial service to search for those remaining individuals for

whom they were not able to obtain updated information from the local

unions. The Trustees will mail notices to individuals within five (5) days

of locating them.

(3) Notices will not be delivered electronically.
14

(4) List of contributing employers.

See Exhibit 10 for a list of the contributing employers as of the date of

this Application that have an obligation to contribute to the Plan within the

meaning of Section 4212(a) of ERISA.

(5) Employee organization representing participants under the Plan.

The employee organizations representing participants under the Plan are:

Teamster Local Union Nos. 118, 264, 294, 317, 449, 529, 560, 687, and

812.
15

SECTION 5. PLAN SPONSOR’S DETERMINATION RELATING TO

REASONABLE MEASURES TAKEN TO AVOID INSOLVENCY

.01 Measures taken to avoid insolvency

Although only required to describe ten years of their efforts to avoid insolvency,

the Trustees have been proactively taking steps to address funding issues for

longer than ten years.

Plan Design

Even before the passage of the PPA, which required multiemployer plans to take

certain actions to improve funding, the Trustees addressed the funding issue in the

hope that taking action early would avoid a longer-term solvency crisis.

Following the dot-com bubble bust and after three consecutive years of

investment returns below the assumed rate of return erased millions of dollars in

Plan assets and hundreds of millions of dollars in expected earnings, the Trustees

cut future benefit accruals in half, from 2.6% to 1.3% of contributions, effective

January 1, 2004. The Trustees took this difficult action when the Plan’s funded

ratio was 74.4%, well above the 37.6% as of January 1, 2016. Although these

benefit cuts were difficult and unpopular, it is hard to imagine what the state of

the Plan would be today if the Trustees had not taken this early action. To the

contrary, the combination of those benefit reductions and several years of positive

investment returns helped stabilize the Plan, and in 2007 the funded ratio had

improved to 75.7%.

Following passage of the PPA, the Plan’s actuary certified the Plan as being in

Endangered Status on March 27, 2008. As required, the Trustees adopted a

Funding Improvement Plan (FIP), which went into effect on January 1, 2009. The

FIP provided for annual contribution increases of 5% in exchange for participants

being able to retain the 1.3% accrual rate, and offered two other schedules with

lower benefit accruals for a lower contribution increase requirement. See Exhibit

16.

As was the case for most other pension funds, the unprecedented global financial

crisis of 2008 had a devastating effect on the Plan. That year alone, the Plan

suffered $822 million net asset losses, or almost 36% of the Plan’s total assets.

The Plan’s funding ratio at January 1, 2009 was down to 56.6% (based on the

actuarial value of assets). The Plan took advantage of the Worker, Retiree &

Employer Recovery Act of 2008 and remained in Endangered Status in 2009, but

was certified in Critical Status for 2010, with a funding ratio of 61.6%.

The Trustees adopted a Rehabilitation Plan in 2010 as required by the PPA. See

Exhibit 19. The Rehabilitation Plan’s Default Schedule eliminated all adjustable

benefits effective January 1, 2011, and eliminated all lump sum payments above

$5,000, effective April 30, 2010, as legally required. The following adjustable
16

benefits were eliminated: the Regular Pension (age 60); all disability benefits; all

death benefits (other than the qualified pre-retirement survivor’s annuity); and, all

Reciprocal Pensions to the extent such pension was tied to one of the foregoing

eliminated adjustable benefits. In addition, the Trustees froze the Supplemental

Social Security Benefit.

The Rehabilitation Plan established several other “alternative” schedules

providing for lesser reductions in early retirement subsidies. In each case,

however, the alternative schedule is designed to offset the actuarial cost of the

additional subsidies through higher annual contribution increases. For example,

an employer participating in the Plan under Schedule E is required to make annual

contribution rate increases of 8.25% (as opposed to 6% under the Default Plan) in

order to pay for the cost of the early retirement subsidies offered under that

schedule, including retirement at age 55 with 30 years of service. See Exhibit 19

for additional information on the subsidies provided in the alternative

schedules of the Rehabilitation Plan. 4

In addition to adopting the Rehabilitation Plan, in 2010 the Trustees attempted to

address the serious funding issue caused by the shrinking number of contributing

employers and, in particular, the Plan’s inability to attract new employers. The

Trustees requested and were granted in November of 2010, approval by the

Pension Benefit Guaranty Corporation (PBGC), to implement an alternative

withdrawal liability method for allocating unfunded vested benefits. Effective for

withdrawals that occurred on or after January 1, 2011, the Plan effectively created

two pools of unfunded vested benefits – one for “Old Employers” and one for

“New Employers.” The Trustees determined to manage the “New Employer”

pool in a manner to avoid creating unfunded vested liability. This was to be

accomplished through conservative benefit accruals and careful monitoring of the

“New Employer” pool. The Plan marketed this approach to several new

employers and the union, although in the end, no significant employers were

interested in entering the Plan under the “New Employer” pool approach.

On June 1, 2012, the Trustees again tried to address the funding threat caused by

the steady decline in employer contributions, this time focusing on retaining

employers and bargaining groups in the Plan. In connection with updating the

Rehabilitation Plan, the Trustees added one additional alternative schedule,

Schedule F, designed to retain more financially- stable employers that could

continue to contribute to the Plan for the long-term. In recognition that the Plan’s

mounting contingent withdrawal liability and contribution increases were a

significant factor in employers’ decisions to withdraw from the Plan, Schedule F

provided for existing contributing employers to pay 80% of the present value of

their withdrawal liability in a lump sum (or in periodic installments not to exceed

4 The Rehabilitation Plan’s alternative schedules provided for a transition benefit, which offered a lesser

reduction to the Thirty-Year Pension benefit for participants with at least 25 years of credited service as

of January 1, 2011, and who retire after earning at least 30 years of credited service but prior to attaining

the applicable unreduced age. (See Exhibit 19).
17

five years), and then participate in the “New Employer” pool for purposes of

withdrawal liability. Now being offered to existing employers, the “New

Employer” pool was the same one created and approved by the PBGC in 2010,

and was to be managed to avoid future unfunded liability for employers in that

pool. This concept had advantages for both the Plan and employers. There were

significant funding advantages to the Plan to have additional employer monies

immediately paid, while employers got the benefit of eliminating their existing

contingent withdrawal liability and avoiding, to the extent legally permissible, any

additional future contingent liability.5Schedule F also offered employers relief

in the short term with respect to contribution increases, generally a 15% reduction

in the contribution rate for five years. Participants of “New Employers” received

a benefit accrual rate of 1% of contributions, with future contribution rate

increases resulting in increased benefit accruals. Most of the other schedules

under the Rehabilitation Plan provide for non-benefit bearing annual contribution

increases. Although the Plan met with a number of existing contributing

employers about the advantages of Schedule F, no employer has adopted this

specific alternative schedule. See Exhibit 19.6

Investments

Recognizing that the Plan would require increasingly greater investment income

to cover the increasing benefit expenses, the Trustees adopted and implemented

an asset allocation utilizing best practices for risk control, diversification, and

return enhancement. In consultation with their professional investment

consultants, they also realized that this increased reliance on investment income

meant the Plan needed to protect itself from extreme market fluctuations, and

required an investment portfolio and asset allocation that could increase

investment return without adding imprudent, additional risk. With these goals and

objectives, the Trustees implemented an alternative and diversified investment

strategy, which is not usually available to smaller multiemployer pension plans.

Based on the Plan’s asset allocation and alternative investment strategy, the Plan

has been able to maintain an 8.5% investment return assumption, well above the

return assumption for a traditional 60/40 global stock to global bond portfolio.

The Plan’s current asset allocation is well-diversified and has a higher expected

return compared to a traditional 60% global stock and 40% global bond portfolio.

5 To offer further assurances against potential withdrawal liability for employers adopting Schedule F, the

Trustees amended the Plan so the “New Employer” pool would use the direct attribution method of

withdrawal liability, subject to the approval of the PBGC. The Plan submitted the amendment to the

PBGC for approval on January 28, 2013. To date, the PBGC has not acted on the request to approve the

amendment.

6 On January 1, 2013, the Trustees updated the Rehabilitation Plan to add Schedule G, which was adopted

to help retain YRC and its affiliated companies after it negotiated a series of amendments to its collective

bargaining agreement that, among other things, provided for a temporary cessation of pension

contributions and a reduced contribution rate.
18

See Exhibit 4, at Appendix B. Further, the Plan’s asset allocation is not overly

reliant on any one asset class. No more than 20% of the portfolio is allocated to

any one asset class, which reduces the risk of negative experience from excessive

exposure to any single asset class.

The Plan’s largest allocation is 18% to U.S. equities, making it significantly less

reliant on U.S. equities than a traditional 60/40 global equity and global bond

portfolio. Including international and emerging market equities along with U.S.

equities, the Pension Fund has a 42% allocation to publicly-traded equities, still

well below traditional 60/40 portfolios.

To enhance returns and improve diversification, the Plan’s asset allocation

includes private equity (15%), real estate (7%), natural resources (7%), and

infrastructure (5%).

Over the past seven years, the Plan returned 9.1%, net of fees, outperforming a

60/40 global equity and global bond portfolio by 1.8% per year, or greater than

20% cumulatively.

Over the past seven years, the Plan’s investments in private equity returned 14.9%

per year, real estate returned 10.8% per year, and infrastructure returned 11.2%

per year, all exceeding publicly-traded equities by 1.5% to 5.5% per year, and

exceeding global bond returns by 6.4% to 10.4% per year. The Plan’s natural

resources investments do not yet have a seven-year return history, but have

returned 3.2% per year over the past five years.

Employer Withdrawals

The Trustees recognize that employer withdrawals from the Plan are a serious

threat to the Plan’s solvency, particularly withdrawals by employers that do not

pay the full assessed withdrawal liability due to company closures, bankruptcies,

liquidations, de minimis reductions and 20 year cap limitations imposed by

ERISA. Although the Trustees cannot generally control whether an employer

withdraws, the Trustees have taken a number of measures to protect the Plan’s

solvency with respect to these withdrawals. First, the Plan is diligent and

aggressive in attempting to collect withdrawal liability from all withdrawing

employers and members of their controlled group who are responsible for paying

the liability. Of the more than 600 employer withdrawals, the Plan has collected,

or is collecting, more than $450 million in withdrawal liability. Second, the

Trustees have been diligent in reviewing any employer transaction seeking safe

harbor protection under Sections 4204 or 4218 of ERISA to ensure the Plan’s

financial integrity is not disadvantaged, including whether a principal purpose of

any transaction is to evade or avoid withdrawal liability under Section 4212(c).

Additionally, to better reflect the Plan’s severely underfunded status, the

assumptions used for calculating withdrawal liability were changed for
19

withdrawals occurring on or after January 1, 2010. The actuaries now use PBGC

assumptions, which require withdrawing employers to pay an amount consistent

with the amount needed to settle the unfunded vested liability they are leaving

behind. This change was made because the Plan is no longer attracting new and

financially stable employers to replace employers that withdraw. While the Plan

has always been aggressive in assessing and collecting withdrawal liability, since

changing assumptions the Plan has collected millions of dollars more of

withdrawal liability than what it would have collected using the prior

assumptions.

Finally, withdrawing employers that participated in one of the Rehabilitation

Plan’s alternative schedules can leave behind greater unfunded vested liability

because the actuarial cost of the subsidized benefits are paid for by increased

employer contributions over time. To ensure the solvency of the Plan is not

jeopardized by such withdrawals, the current Rehabilitation Plan requires that

the withdrawing employer be deemed to have participated under the Default

Schedule. Participants working for that employer at the time of the withdrawal

receive only the Default Schedule benefits, which include no early retirement

subsidy or adjustable benefits, regardless of the alternative schedule in which

those participants previously participated.

.02 Plan Factors

(1) For the past ten Plan Years immediately preceding the Plan Year in which

the Application is submitted:

(a) Contribution levels.

The information concerning contribution levels for the past 10 years is

included in Exhibit 12.

(b) Level of benefit accruals, including any prior reductions in the rate of

benefit accruals.

The current rate of benefit accruals varies from 1% of contributions to

0.25% of contributions depending on the applicable schedule adopted by

the contributing employer under the Plan’s Rehabilitation Plan. See

Actuarial Valuation as of January 1, 2015, attached as part of Exhibit

21 at Appendix C for a history of the Plan’s benefit accruals.

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

The Trustees eliminated the following adjustable benefits for all

participants under the January 1, 2011 Rehabilitation Plan:
20

(1) Regular Pension (age 60); (2) All disability benefits; (3) All death

benefits (other than the qualified pre-retirement survivor’s annuity); (4)

All Reciprocal Pensions to the extent such pension was tied to one of the

foregoing eliminated adjustable benefits. The Trustees also froze the

Supplemental Social Security Benefit.

In addition, Participants whose employers adopted the Default Schedule

under the Rehabilitation Plan had the following adjustable benefits

eliminated/reduced effective January 1, 2011:

(1) The Thirty Year Pension; (2) Supplemental Accrual Rate; (3) Five

Year Certain Annuity; (4) Ten Year Certain Annuity; (5) Qualified 100%

Joint and Survivor Annuity; (6) 50%, 75%, and 100% Joint and Survivor

Annuities with Pop-Up; (7) Voluntary lump sum payments equal to

$5,000 or more; (8) Early and Vested Pensions calculated to equal the

actuarial equivalent of the monthly amount of the Normal Pension to

which a participant would have been entitled upon attaining age sixty-five

(65) based upon credited service as of the date of the participant’s early

retirement. See Exhibit 21 at Appendix C (Actuarial Valuation as of

January 1, 2015) for list of subsidies under the Rehabilitation Plan’s

Alternative Schedules.

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

The Plan has had no prior suspension under §432(e)(9).

(e) Measures undertaken by the plan sponsor to attract or maintain

contributing employers.

The Trustees have undertaken a number of measures to attract and

maintain employers.

First, in designing the Rehabilitation Plan, the Trustees recognized that a

one-size-fits-all benefit and contribution approach would provide

employers and participant groups a further incentive to withdraw. The

Plan has many employers and participant groups, and each employer has a

different economic situations and each participant group has different

benefit expectations. Forcing an employer that is struggling financially to

pay the large contribution increases required to fund the benefits

demanded of participant groups with expectations of enhanced benefit

levels could force them out of business or to otherwise withdraw. On the

other hand, forcing a participant group of a financially-sound employer to

accept the lower benefits that a less viable company could afford would

likely prompt the employer, with potentially the backing of the union and

employees, to withdraw from the Plan. For this reason, the Trustees
21

developed several alternative schedules under the Rehabilitation Plan that

took into account these varying financial conditions and expectations. 7

Additionally, as described in more detail above in Section 5.01, the

Trustees attempted a number of other measures to retain and attract

contributing employers. In 2010, the Trustees implemented a two-pool

withdrawal liability methodology, with the new, second pool designed and

managed to avoid withdrawal liability to the maximum extent possible.

Given employers’ great aversion to unchecked withdrawal liability, the

Trustees believed this two-pool approach might be attractive to some

employers and provide the union some ability to negotiate new employers

into the Plan. Focusing on retaining existing contributing employers, the

Trustees also developed new Alternative Schedule F in 2012. Schedule F

allows current employers to avoid or limit their future withdrawal liability

by paying 80% of their withdrawal liability while continuing to contribute

to the Plan as a “New Employer.” See Exhibit 19. Both these efforts were

the Trustees’ attempts to retain and attract contributing employers.

A strong disincentive for employers to withdraw, as well as a deterrent for

participants to favor their employer’s withdrawal, was established when

the actuary changed the calculation assumptions for withdrawal liability.

As discussed above, the changed assumptions generally make it much

more expensive for employers to withdraw, and participants working for a

withdrawing employer can only receive the Default Schedule benefits,

regardless of whether they were previously working under an alternative

schedule. This is a significant deterrent, particularly for participants who

agreed to divert wages to pay for the enhanced benefits.

(2) The impact on Plan solvency of the subsidies and ancillary benefits, if any,

available to Active Participants.

The Plan for many years offered benefits that included various early

retirement subsidies, as well as ancillary benefits like disability pensions.

Effective January 1, 2011, the Trustees eliminated all subsidies and

ancillary benefits under the Rehabilitation Plan Default Schedule. As

discussed previously in this Application, the Trustees did not eliminate all

7

In order to avoid the loss of another major employer, the Plan – like most other Teamsters

pension plans – permitted YRC and its affiliated companies to temporarily cease contributions and

thereafter participate in the Plan at a reduced contribution rate. The Trustee adopted Schedule G of the

Rehabilitation Plan to accommodate YRC’s situation and address the benefits levels provided under

reduced contribution rates. The Trustees determined that accepting YRC’s negotiated concessions and

permitting the Company to remain in the Plan was more beneficial to the solvency of the Plan than

rejecting the concessionary agreement. The Trustees’ determination has proved accurate, as YRC’s

Active Participant base has remained stable since the adoption of Schedule G. Since 2013, the YRC’s

Active Participant population has remained stable, and is projected to remain at the 2016 level throughout

the projection period. See Exhibit 4.
22

subsidized benefits under the Rehabilitation Plan’s alternative schedules.

Eliminating all subsidies under the Rehabilitation Plan would likely have

driven employers and employee groups to withdraw from the Plan. Any

subsidized benefit that remains in the alternative schedules, however, is

paid for through higher contribution rate increases required under those

schedules. To the extent there was any additional liability associated with

retaining the subsidies, the Trustees concluded that the negative effect of

additional withdrawals as a result of eliminating the remaining subsidies

would be greater than the savings in liability associated with eliminating

the remaining subsidies.

(3) Compensation levels of Active Participants relative to the Participants’

industry generally.

As of January 1, 2015, the Plan had 11,678 Active Participants. See

Exhibit 21 (Actuarial Valuation as of January 1, 2015). These

participants are spread among various occupations and industries,

although the Plan historically and today covers primarily transportation

and warehousing employees. Historically, compensation levels of the

Plan’s Active Participants have been greater than non-participants in these

industries. According to the Bureau of Labor & Statistics (“BLS”), the

median weekly earnings of unionized transportation and warehousing

employee is $980, compared to a non-union median of $754 per week.8

A discussion of the participants’ compensation is not complete, however,

without taking into account the differences in retirement plan costs

between unionized and non-unionized employees. A BLS March 2016

News Release reports that in the unionized sector of the “service

producing industries,” which include transportation and warehousing, an

average of $3.28 per hour of total employee compensation (7.4%) goes to

fund retirement plan costs. The non-unionized sector average is only $.88

per hour (3%).9

Although on average unionized employees have traditionally received

higher wages than non-union employees, in recent years non-union

workers’ wages have increased more rapidly than unionized workers’

wages.

10 It is likely that pension costs for unionized workers are keeping

their wages stagnant. This has a profound effect on the Plan, which has

seen employer contribution rates increase approximately 200% since the

8

See Industries at a Glance, Transportation and Warehousing: NAICS 48-49,

http://www.bls.gov/iag/tgs/iag48-49.htm.

9

See Employer Costs for Employee Compensation, March 2016, Table 13 at page 22.

10 See George L. Long, “Differences Between Union and Non-Union Compensation,” Monthly Labor

Review (April 2013).
23

early 2000s. The Plan’s actuary has projected that an Active Participant

today is likely to receive approximately the same benefit as a current

retired participant, but that benefit will cost three times as much. Pension

contributions have continued to increase. Many Active Participants

working under Alternative Schedule E have seen those increases funded

through reductions in their wages.

(4) Competitive and other economic factors facing contributing employers.

A number of competitive and economic factors over the past 35 years have

negatively affected the Plan’s contributing employers and directly

impacted the Plan’s solvency. The deregulation of the trucking industry in

the early 1980s started the steady decline in the number of the Plan’s

contributing employers and the Plan’s financial condition. There has been

a huge decline in unionized employment in the U.S. from approximately

27% in 1977 to 13% in 2011. Additionally, during the past 10-15 years,

the LTL sector of the trucking industry, especially those smaller freight

businesses in New York State, and its unionized workforce covered under

the Plan have suffered an even more rapid decline.

During the past 10 years, which included the economic disaster of 2008-

2009, there has been little to no growth in the U.S. economy, which has a

significant impact on the trucking industry. The two major recessions in

the 2000s drove many contributing employers out of business or into

bankruptcy. Further, because so many of these employers withdrew from

the Plan in severe financial distress, a large number were unable to pay

their full withdrawal liability to the Plan.

In 2009 - 2015, the Plan saw some significant contributing employer

events that negatively affected the Plan’s funding. One of the Plan’s larger

employers, YRC, and its affiliated companies, negotiated a temporary

cessation of their obligation to contribute for the period from July 2009

through December 31, 2010, and then commenced contributions at a

collectively bargained concessionary pension rate that is 25% of the preJuly 2009 rate. On November 18, 2009, Penn Traffic, the Plan’s fifth

largest contributing employer, filed for bankruptcy. In 2013, Wegmans,

the Plan’s second largest employer, negotiated a withdrawal from the Plan.

Later, in 2015, Dairy Farmers of America also negotiated a withdrawal

from the Plan instead of sustaining any further contribution increases.

Additionally, during the past 10 years, there has been a shifting

demographic whereby the “baby boomer” generation has been retiring in

record numbers, and the unionized workforce employed by the Plan’s

contributing employers has steadily declined. In 1990, there were 23,883

Active Participants and 10,150 retired Participants, for a ratio of more than

2 Active Participants for every 1 retired Participant. In 2000, the ratio was
24

almost 1 to 1, as the number of active participants declined to 16,827, and

the number of retired participants increased to 14,198. As of January 1,

2016, there were 11,575 active participants, compared to 15,976 retired

participants. The Plan has simply been unable to replace retirees with new

hires on a one-to-one basis, which has hurt the Plan. The Plan’s equal

ratio of active participants to retirees has been reversed significantly.

The trend of workers retiring and not being replaced by active employees

has negatively impacted the Plan’s funding over the years. In 2008, the

Plan paid out approximately $144 million more in benefits than it received

in employer contributions. That difference was $168 million in 2009,

$182 million in 2010, and $187 million in 2011. The demographic shift

has caused the Plan, which has historically been dependent on contribution

income, like many other Teamster plans, to grow increasingly dependent

on investment income to cover the differences between contributions

received and benefits paid. Currently, as a result of this retirement

increase and change in the Plan’s population, for every $2.33 the Plan

pays out in pension benefits, only $1 is collected from employers,

resulting in the annual shortfalls outlined above.

Lastly, employers have been moving away from establishing or

participating in defined benefit plans and are instead moving into defined

contribution plans. Such plans are generally less expensive for the

employer than defined benefit plans, and they shift the investment risk

away from the employer. The availability of such plans makes it harder to

attract new employers to the Plan. Employers do not want exposure to

withdrawal liability, or the risk associated with economic market

fluctuations they know can leave them with a volatile contribution

obligation.

.03 How plan factors were taken into account.

(1) Contribution levels

As explained above in Section 5.02(1)(a), over the last 10 years the

Trustees have taken all reasonable measures with respect to employer

contribution levels. In fact, the Trustees’ efforts to increase contribution

levels go back to the early part of this century, as employer contribution

rates have increased almost 200% since that time. Given these massive

increases in contributions over the years, and the continued withdrawal of

contributing employers, it is clear that additional contribution rate

increases (especially those set forth in the Rehabilitation Plan) are not

sustainable for the Plan’s remaining contributing employers. The result of

further contribution increases will be more employer bankruptcies and

thus more employer and participant group withdrawals.
25

In developing each of the Rehabilitation Plan schedules, the Trustees

carefully considered contribution levels and the effect additional increases

would have on the Plan’s contributing employers. Although the Trustees

saw the increases driving employers from the Plan at a faster pace, the

Trustees had no other way to keep the Plan from becoming insolvent, once

the Rehabilitation Plan reduced benefits to the maximum extent allowable

under then-existing law. In an attempt to retain employers, the Trustees

adopted a series of alternative schedules to the Rehabilitation Plan to

allow the bargaining parties (union and employers) to negotiate for

subsidized benefits in exchange for higher contribution rates. Each

alternative schedule was designed to have the same actuarial cost as the

Default Schedule, and the contribution rates for each schedule were set to

pay for the subsidized benefit.

Currently, the Rehabilitation Plan has seven alternative schedules as well

as the required Default Schedule. The Default Schedule requires a 6%

annual contribution rate increase for the PPA statutorily-required

minimum benefit of 1% accrual and elimination of all adjustable benefits,

including early retirement subsidies. Under the current alternative

schedules, various additional benefits are available for required

contribution rate increases of between 6.50% and 8.25% annually.

Although these alternative schedules were originally developed to provide

different cost options for employers, the increases have quickly become so

costly that the only way some employers have been willing to accept the

more-expensive alternative schedules is to require a reallocation of monies

from wages to pension contributions, under their collective bargaining

agreements. For example, United Parcel Service (“UPS”), which

represents approximately 76% of the Plan’s overall contributions,

participates in Schedule E for its full-time employees. Currently, the UPS

full-time rate is $14.6650 per hour, with required increases annually of

8.25%. To maintain the Schedule E benefits, which provide for a

subsidized early retirement option important to many of the UPS

employees, the union and employer negotiated for wages to be reallocated

to pay for the a portion of the cost of the enhanced pension benefits. UPS

employees currently have $1.60 per hour reallocated from wages in order

to fund their Schedule E pension benefit level.

Current contribution rates are economically stifling for the Plan’s

contributing employers. ABF Freight Systems, for example, is paying

$13.6299 per hour for its employees, which is $545.196 per week or

$28,350.192 per year. See Exhibit 22 for list of employer contribution

rates as of August 1, 2015. Moreover, the required 6% to 8.25% annual

contribution increases under the Rehabilitation Plan schedules create rates

that are unsustainable in the long-term. For example, if UPS is annually

required to increase its contributions to the Plan by 8.25%, its contribution
26

rate in 20 years, by 2037, would be approximately $170,000 annually for

each full-time employee covered under the Plan.

In 2015, the actuary informed the Trustees that the current Rehabilitation

Plan contribution rates likely would require increases commencing in

2016, in order for the Plan to continue to project solvency. At about the

same time and in connection with the Plan’s annual certification for the

2016 Plan Year, the Trustees deadlocked over whether they would instruct

the Plan’s actuary that continued annual employer contribution increases

of 6.00-8.25% was an unreasonable projection of future industry activity

under ERISA Section 305(b). In consideration of the Plan’s experience,

the employer Trustees put forth a motion to instruct the actuary that

continued employer contribution increases of 6% were not sustainable and

should not be assumed for the purposes of projecting future industry

activity.

After a deadlock arbitration hearing on October 15, 2015, Arbitrator Elliot

Shriftman ruled that the Plan’s actuaries should not assume future annual

contribution increases of 6.00% as part of the industry activity projection.

Based on the arbitrator’s decision, the Plan’s actuaries have assumed that

future annual contribution increases will be less than 6% annually.

Although not a factor in the Arbitrator’s decision, the Trustees also

considered the effect of continued employer contribution increases on Plan

participant behavior. Approximately 20% of each dollar of contributions

to the Plan generated by work performed by the Active Participants pays

for the pension that they earned for that work and to operate the Plan; the

remainder funds the pensions of Non-Active Participants (retired and

terminated vested participants). The Trustees have determined that

mandatory additional contribution rate increases would be likely to: (a)

cause a net decline in support for the Plan among Active Participants; and

(b) make it more difficult for contributing employers to attract and retain

qualified employees. These consequences, in turn, will lead to more

employer withdrawals and to a decline in contribution income to the Plan.

Accordingly, for purposes of this Application, the Trustees agreed that

contribution rate increases would be equal to those called for under the

Rehabilitation Plan until 2018. Starting in 2018, contribution rate

increases are assumed to be 3.5% for 4 years, then 3% for the next 9 years,

and then 0.0% thereafter. In developing these rates, the Trustees gave

serious consideration to macroeconomic factors, the financial strength of

contributing employers, competition in the marketplace, the relationship

between contribution levels and benefit levels, and expected changes in

the wage packages over the next several years. In doing, so the Trustees

determined that it was reasonable to require contribution increases at the
27

rates prescribed in the Rehabilitation Plan for the next two years, followed

by additional increases at a rate less than what is required under the

Rehabilitation Plan, with the understanding that in fifteen years the

employers would not incur any additional increases. The Trustees

determined that such increases will avoid insolvency, keep employers

financially viable, and help retain and attract qualified employees.

(2) Benefit accrual levels, including any prior reductions in the rate of benefit

accruals.

As explained above in Section 5.02(1)(b), the Trustees have made a

number of benefit accrual reductions over the last 10 – 12 years. The

benefit reductions, when considered with the required annual contribution

increases, have resulted in employers paying more for their employees to

receive a smaller benefit. This has caused many employers – and

increasingly rank-and-file union members – to want to support their

employer’s withdraw from the Plan.

The first benefit accrual level reduction was effective January 1, 2004.

After three consecutive years of less than assumed investment returns, the

Trustees took a difficult, yet proactive step when they reduced the accrual

rate from 2.6% to 1.3% of contributions. After entering Critical Status, the

Trustees eliminated most adjustable and ancillary benefits and

implemented Rehabilitation Plan Schedules which further reduced benefit

accrual rates to a range of 0.25% to 1% of contributions.

In reviewing levels of benefit accruals, the Trustees concluded, in

consultation with the actuaries, that any further reduction in the future

accrual rate beyond those contained in the Rehabilitation Plan would have

a detrimental effect on the Plan by undermining contributing employers’

ability to attract and retain qualified employees. It would also severely

undermine the support of the Plan’s Active Participants. Further, it was

determined that further reductions in accruals would have an immaterial

effect on the solvency of the Plan because the Plan is projected to become

insolvent by 2026. See Exhibit 5. There is just not enough time for

additional reductions in accrual rates to have a significant impact on the

Plan’s solvency. Accordingly, the Trustees concluded that maintaining

future accruals at the rates set forth in the Rehabilitation Plan is a

reasonable measure to avoid insolvency.

(3) Prior reductions of adjustable benefits under Section 432(e)(8).

Section 5.02(3)(c) above details the reductions in adjustable benefits the

Trustees made after adopting the Rehabilitation Plan. Adjustable benefits

include essentially all subsidized benefits other than those in pay status
28

prior to 2011, disability benefits in pay status at any time, and accrued

benefits payable at age 65. The Rehabilitation Plan eliminated the

following adjustable benefits for all participants:

 The Regular Pension (age 60);

 Disability Benefits, including the Disability Pension and Lump

Sum Disability Benefit;

 Death Benefits, including but not limited to, the Lump Sum

Death Benefit and 60-month pre-retirement death benefit; and

 All Reciprocal Pensions to the extent any such pension is tied

to one or more of the adjustable benefits listed above.

The Trustees also froze the Supplemental Social Security

Benefit.

Under the Rehabilitation Plan’s Default Schedule, the following adjustable

benefits were also eliminated11:

 The Thirty-Year Pension.

 The following benefit payment options: 1) Five Year Certain

Annuity; 2) Ten Year Certain Annuity; 3) Qualified 100%

Joint and Survivor Annuity; 4) 50%, 75% and 100% Joint and

Survivor Annuity with Pop-Up; and 5) Voluntary lump sum

payments equal to $5,000 or more.

The Plan’s actuary advises that the decrease in liability as of January 1,

2011 due to the adjustable benefits reduced as part of the Rehabilitation

Plan is approximately $190 million. See Exhibit 21, Actuarial Valuation

as of January 1, 2015 at page 17. With interest to the date of suspension,

the value of the reduction in adjustable benefits would be greater than

$190 million. Additionally, as a result of the Rehabilitation Plan benefit

reductions, the value of annual benefit accruals was reduced by

approximately $20 million per year. Since the Trustees adopted the

Rehabilitation Plan in 2011, the loss of benefits earned by Active

Participants is approximately $125 million (estimated to be over $160

million with interest).

11 The Alternative Schedules retain some of the early retirement subsidies. See Exhibit 21, Actuarial

Valuation as of January 1, 2015 at Appendix C for a description of the subsidies.
29

(4) Prior benefit suspensions under Section 432(e)(9).

The Plan has not implemented prior benefit suspensions under Section

432(e)(9).

(5) Measures taken to retain or attract contributing employers.

As explained in Section 5.02(1)(e), the Trustees have taken many

measures to try to retain or attract new contributing employers, including:

 Adopting Funding Improvement and Rehabilitation Plans that

provide several alternative schedules to offer different options

for contributing employers of varying financial condition;

 Creating a hybrid plan whereby new employers may enter the

Plan and participate in what is now a separate pool of

liabilities, which is managed conservatively to avoid future

withdrawal liability;

 Adopting a Distressed Employer Schedule which allowed YRC

to remain in the Plan rather than withdraw and incur

withdrawal liability sufficient to send the employer into

bankruptcy;

 Adopting Schedule F which allowed existing contributing

employers to pay 80% of the present value of their withdrawal

liability in a lump sum (or in periodic installments not to

exceed five years), and then participate in the “New Employer”

pool, and pay a contribution rate that was 15% lower than the

rate set forth in their applicable Rehabilitation Plan schedule.

The Plan’s experience with efforts to retain and attract contributing

employers has been very difficult. Some of these measures have not been

successful, but given the limited options available, the Trustees concluded

that in enacting each of these measures, they made every reasonable effort

to protect the Plan’s solvency. The Trustees believe that the measure

proposed in this Application, as a whole, will provide the Plan its best

chance of retaining – and possibly attracting – employers.

(6) The impact on the Plan’s solvency of the subsidies and ancillary benefits,

if any, available to active participants.
30

Effective January 1, 2011, the Trustees eliminated all disability benefits

and subsidized early retirement benefits under the Rehabilitation Plan’s

Default Schedule. Any remaining subsidized benefits available under

alternative schedules are paid for by additional contributions required

under those schedules. Accordingly, the Trustees determined that the

subsidies available to Active Participants do not impact Plan solvency. As

previously discussed, it was determined that the negative effect of

additional withdrawals as a result of eliminating the remaining subsidies

would be greater than any savings in liability associated with eliminating

the remaining subsidies.

The Trustees also noted, however, that most of the subsidized benefits are

paid to Non-Active Participants in pay status and that at the time those

benefits were earned the Plan did not receive contributions commensurate

with the value of those benefits. The disproportionality of the subsidies

compared to the contribution/cost ratio of normal retirement benefits was a

factor in the Trustees’ decision to adopt a plan of benefit suspensions

which provides for larger reductions to those participants in pay status.

Active Participants are having larger contributions made on their behalf,

while deriving less benefit from them.

(7) Compensation levels of Active Participants relative to employees in the

Participants’ industry generally.

Retirement plan costs are generally higher for unionized employees in the

transportation and warehousing industry than for non-union employees.

The previously cited BLS March 2016 News Release reports that in the

unionized sector of the “service producing industries,” which include

transportation and warehousing, an average of $3.28 per hour of total

employee compensation (7.4%) goes to fund retirement plan costs. The

non-unionized sector average is only $0.88 per hour (3%).

Although on average unionized employees have traditionally received

higher wages than non-union employees, in recent years non-union

workers’ wages have increased more rapidly than unionized workers’

wages. It is likely that pension costs for unionized workers are keeping

their wages stagnant. As the contribution rates needed to sustain plans

continue to increase, employers cannot absorb them. This means that

participants are often required to reallocate a portion of their total

compensation package from wages to pension contributions. Union

employees are seeing reductions in wages, and reductions in retirement

benefits, but are paying more than ever for those reduced retirement

benefits.
31

Because of these trends and the desire of many workers to improve their

wages rather than see increasing amounts of their total compensation

dedicated to pension contributions (particularly when approximately 20%

of each dollar of contributions to the Plan generated by work performed by

the Active Participants pays for the pension that they earned for that work;

most of the rest funds the pensions of retired and terminated vested

participants), the Trustees have determined that mandatory additional

contribution rate increases would be likely to: (a) cause a net decline in

support for the Plan among Active Participants; and (b) make it more

difficult for contributing employers to attract and retain qualified

employees. These consequences, in turn, will lead to more employer

withdrawals and to a decline in contribution income to the Plan. The

aforementioned factors relating to the compensation levels of active

participants relative to other employees in the participants’ industry

generally have caused the Trustees to conclude that they have taken all

necessary steps to avoid insolvency.

(8) Competitive and other economic factors facing contributing employers.

As discussed above in Section 5.04, the Trustees have continually

considered the competitive pressures and financial constraints faced by the

Plan’s contributing employers. The Trustees recognize that if they set

contribution requirements at a level that the employers cannot sustain, it is

very likely that the employers will go out of business, and/or file for

bankruptcy, or simply leave the Plan. This is not pure speculation; the

Trustees have seen it happen now for several years.

YRC and its affiliated companies, one of the Plan’s larger employers,

negotiated a temporary cessation of their obligation to contribute and now

participate at a reduced contribution rate. Penn Traffic, the Plan’s fifth

largest contributing employer, filed for bankruptcy. Wegmans, the Plan’s

second largest employer, negotiated a withdrawal from the Plan. The

Trustees’ conclusion that the economic factors confronting employers will

not permit additional, unchecked increases in contributions is based on

first-hand experience.

The Trustees are also aware that most non-union employers do not

sponsor defined benefit plans. Contributing employers are competing with

non-union employers that do not have legally required pension

contribution obligations. Most of the employers’ non-union competitors

maintain profit sharing or 401(k) plans. Such plans are not subject to the

Internal Revenue Code’s minimum funding requirements, and place the

investment risk on the employee. The Plan’s employers bear the burden of

having to make contributions that are not only contractually required, but
32

legally required. Moreover, when the financial markets underperform or

suffer losses, it is the employers that have to make up the difference.

(9) The impact of benefit and contribution levels on retaining Active

Participants and bargaining groups under the Plan.

As discussed above, the Trustees recognize that benefit and contribution

levels have an effect on retaining Active Participants. In enacting

reasonable measures to avoid insolvency, the Trustees were mindful of

recent experience, where the Plan’s second largest employer negotiated a

withdrawal from the Plan with the approval of its employees.

In developing the PPP, the Trustees took into account all the benefit

reductions the active participants have experienced since 2004. Benefit

accrual rates have been cut from 2.6% of contributions to 1%, and in some

cases, 0.25% under the Rehabilitation Plan. In addition, the participants

have in many cases seen wages stagnate or be reduced in order to pay for

the benefit reductions. The reality is that the increases are not completely

going to pay for the Active Participants’ reduced benefits; the bulk of the

increases are going to pay the benefits for the Non-Active Participants.

The Trustees, based on experience, know that there is a limit to what

Active Participants will tolerate before they look for other retirement

options. They also know that if there are no active employees, the Plan is

not viable and all retired Participants’ benefits are at risk. With this in

mind, the Trustees took the reasonable measure of proposing 20%

reduction in the accrued benefit of Active Participants versus a 31%

reduction for Non-Active Participants.

(10) The impact of past and anticipated contribution increases under the Plan

on employer attrition and retention levels.

As discussed in detail above, the prior contribution increases imposed on

contributing employers have become unsustainable. The Trustees saw

first-hand what effect the rates were having on contributing employers:

employers were withdrawing from the Plan, either voluntarily, as was the

case with Wegmans or by filing bankruptcy, like Penn Traffic. If the

increases were left unchanged, in twenty years UPS would be paying

approximately $170,000 annually for each full-time employee covered

under the Plan. Even a financially successful company like UPS cannot

absorb such costs. Arbitrator Shriftman found that contribution increases

called for under the Rehabilitation Plan were based in “excessive”

optimism and “dangerous speculation” given the Plan’s experience.

When designing their PPP, the Trustees determined that the anticipated

future increases required, which would otherwise be unreasonable based
33

on the Trustees’ past experience and Arbitrator Shriftman’s ruling, became

reasonable in the long-term when applied in conjunction with the proposed

benefit suspensions. Moreover, there is relief in sight in 2031, when no

increases will be required. In reviewing all these factors, the Trustees

determined that prior contribution increases had brought the Plan’s

remaining employers to the brink of leaving the Plan. Contribution

increases called for under the Rehabilitation Plan will take them over the

brink. The contribution increases required under the PPP give employers

hope that there is light at the end of the tunnel, and such light gives the

remaining employers an incentive to stay in the Plan and keep it from

becoming insolvent.

.04 Other Factors considered.

(1) Investment Return Assumptions.

Another factor the Trustees considered when developing the PPP is the

effect of future investment returns on the Plan’s ability to remain solvent.

Given the Plan’s current asset allocation, the investment return

assumptions are well above a traditional 60% global stock and 40% global

bond portfolio (“60/40 portfolio”). Assuming the current asset allocation

remains unchanged, Meketa Investment Group’s (“Meketa”) 20-year

return estimates are 8.8% for the Plan, and 7.0% for a 60/40 portfolio.

The 10-year median estimates from the Horizon Actuarial 2016 Survey of

Capital Market Assumptions (“2016 Survey”) are 7.37% for the Plan and

5.95% for a 60/40 portfolio. The 20-year median estimates from the 2016

Survey are 8.35% for the Plan and 7.11% for a 60/40 portfolio.

The Trustees expect to obtain these higher returns with the current asset

allocation without incurring much additional risk. That is because the

Plan’s private markets assets have less price volatility risk than the

publicly-traded assets. While private market assets generally have more

liquidity risk, the Plan’s private market assets currently have a positive

cash flow. The investment consultant projects the Plan’s private market

cash flow to be significantly positive over the next several years.

Accordingly, the Plan’s exposure to the liquidity risk normally associated

with private market assets is reduced. It is not expected that the Plan will

have to liquidate the private market assets at depressed values to make

benefit payments.

In selecting the investment return assumptions of 6.75% select and 7.50%

ultimate, the actuary has taken into account many factors as described in

Appendix B of Exhibit 4. These factors include the possibility that the

asset allocation may need to change in the future because the timing of

future expected contributions and benefit payments result in the Plan
34

having significant negative cash flow (only partially offset by the cash

flow from private market investments), and the greater materiality of asset

returns during the earlier years of the cash flow projection.

Based on the current asset allocation and assuming no future changes to

the current asset allocation, Meketa estimates a 66% probability of

achieving 6.75% over the next 10 years, and a 64% probability of

achieving 7.50% over 20 years. In comparison, Meketa estimates a 60/40

portfolio has a 52% probability of achieving 6.75% over 10 years and a

42% probability of achieving 7.50% over 20 years. As discussed above,

the Plan is structured differently than a 60/40 portfolio, with a higher

expected return and a greater probability of achieving the assumed returns.

Even with the possibility of future adjustments in the asset allocation,

investment returns are expected to be greater than a 60/40 portfolio. This

is because the Plan can maintain some of its private market investments as

these investments are mature and well beyond the initial j-curve phase.

(2) Strengthening the Plan’s Re-Employment Rules.

As discussed above, the Trustees have recognized that the Plan’s solvency

problem as caused by a growing imbalance in the ratio of actives to

retirees/beneficiaries has not been solely as a result of employer

withdrawals. Another factor contributing to the problem is that an

increasing number of participants are retiring (sometime under early

retirement provisions of an alternative schedule), commencing their

pension and then returning to work in “prohibited employment”. This

includes working for non-union companies that compete with the Plan’s

contributing employers. Although the Plan always has been diligent in its

efforts to ensure compliance with its re-employment rules, the Trustees

have strengthened enforcement by requiring retired participants to

annually certify their employment information, including their place of

employment and amount of earnings. Retirees are also required to provide

written authorization for the Plan to access their Social Security records to

confirm the information in the certification. Strict enforcement of the

Plan’s re-employment rules is yet another reasonable measure the Trustees

have taken to help forestall insolvency.
35

SECTION 6. OTHER REQUIRED INFORMATION.

.01 Ballot. See Exhibit 11 for a proposed ballot intended to satisfy the requirements

of Section 432(e)(9)(H)(iii).

.02 Partition. The Plan is not applying to the PBGC for a partition order.

.03 Ten-year experience for certain critical assumptions. See Exhibit 12 for a

disclosure of the Plan’s experience for certain critical assumptions for each of the 10 Plan

Years immediately preceding the Plan Year in which the Plan’s application is submitted

for the proposed benefit suspension.

.04 Demonstration of sensitivity of projections. See Exhibit 13 for the following

separate projections: (1) a reduction of 1% in the Plan’s assumed rate of return on assets;

(2) a reduction of 2% in the Plan’s assumed rate of return on assets; (3) a change in the

assumed future contribution base units from the population assumption described above

in Exhibit 4 to a 4.74% annual reduction for the next ten years; and (4) a change in the

assumed future contribution base units from the assumption above to a 5.74% annual

reduction for the next 10 years. The 4.74% annual reduction in future contribution base

units is based on the historical decline in contribution base units as shown in Exhibit 12.

As noted in Exhibit 12, the drop in contribution base units from the 2013 to 2014 Plan

Year is primarily due to the withdrawal of employers who are currently making

withdrawal liability payments or have satisfied their withdrawal liability obligation in

full.

The Trustees believe that the downward trend in contribution base units will not continue,

as the withdrawals in 2013 – 2014 were specific, one-time events unlikely to be repeated.

The withdrawn employers in 2013 and 2014 accounted for approximately 2.5 to 3.0

million hours in the years 2010 – 2013. If the withdrawn employers’ hours for 2010 –

2013 are factored out, there is a steady pattern of hours for 2010 – 2013. As discussed

earlier, the Trustees are confident that the economic certainty provided to employers

under this Application with respect to their future contribution obligations will provide

employers with an incentive to remain in the Plan. Likewise, the Application and other

communications with Active Participants have shown them that there is long-term hope

for the Plan, and it is to their economic advantage to remain participants.

.05 Projection of funded percentage. See Exhibit 14 for the Trustees’ illustration,

prepared on a deterministic basis, of the projected value of Plan assets, the accrued

liability of the Plan (calculated using the unit credit funding method) and the funded

percentage for each year in the Plan’s extended period, which ends with the Plan Year

2048.
36

.06 Plan sponsor certifications relating to plan amendments. See Exhibit 15 for the

Trustees’ certification that if they receive final authorization to implement the suspension

of benefits as described in Section 432(e)(9)(H)(vi), and choose to implement the

authorized suspension, then, in addition to the Plan amendment implementing the

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

any time thereafter before the suspension of benefits expires: (1) a Plan amendment

providing that, in accordance with Section 432(e)(9)(C)(ii), the benefit suspension will

cease as of the first day of the first Plan Year following the Plan Year in which the

Trustees fail to maintain a written record of their determination that both: all reasonable

measures to avoid insolvency continue to be taken during the period of the benefit

suspension; and the Plan is projected to become insolvent unless benefits continue to be

suspended; and (2) a Plan amendment providing that any future benefit improvements

must satisfy the requirements of Section 432(e)(9)(E).

.07 Whether a plan is described in Section 432(e)(9)(D)(vii)(III). Not Applicable.

.08 Optional additional information. Not Applicable.
37

SECTION 7. IDENTIFICATION AND BACKGROUND INFORMATION ON

THE PLAN.

.01 Plan sponsor. The Board of Trustees of the New York State Teamsters

Conference Pension and Retirement Fund. The Board of Trustees’ mailing address is PO

Box 4928, Syracuse, NY 13221-4928, T: 315.455.9790, F: 315.234.1047, E:

benefits@nytfund.org.

.02 Plan Identification. The name of the Plan is the New York State Teamsters

Conference Pension and Retirement Fund. The Plan has been assigned the Plan Number

074. Its Employment Identification Number (EIN) is 16-6063585. The Plan is a

multiemployer pension plan within the meaning of Code Section 414(f) and ERISA

Section 3(37).

.03 Retiree Representative. On January 18, 2016, the Trustees selected Tom Baum to

be the retiree representative. He is a retiree currently receiving benefits under the Plan

and is not a member of the Board of Trustees. Participants and beneficiaries may contact

Tom Baum at his website at: http://nysteamstersfundretireerep.com or at his e-mail

address: info@nystfretireereptbaum.com.

.04 Plan’s enrolled actuary. The Plan’s enrolled actuary is James M. Locey (EA# 14-

03981) of Horizon Actuarial Services, LLC, 8601 Georgia Ave, #700, Silver Spring, MD

20910.

.05 Power of Attorney. See Appendix B. The Plan’s representatives as attorney-in

fact are John F. Ring and David P. Ofenloch of Morgan, Lewis & Bockius LLP and

Bernard T. King and Jonathan M. Cerrito of Blitman & King LLP.

.06 Plan documents. See Exhibit 16 for the Plan’s: 1) most recently restated Plan

Document and any subsequent Plan amendments, 2) the most recent summary plan

description, 3) the Plan’s most recent determination letter, and 4) the Plan’s Funding

Improvement Plan.

.07 Participation agreements. See Exhibit 17 for excerpts from the participation

agreements pursuant to which the Plan is maintained, including language from any

portions of a collective bargaining agreement or side agreement that are relevant to the

Plan or proposed suspension.

.08 Annual return. See Exhibit 18 for the following sections of the Plan’s most

recently filed 2015 Plan Year Form 5500:

(1) Pages 1 and 2 of the Form 5500;
38

(2) The Schedule MB, including attachments; and

(3) The Schedule R with attachments.

.09 Rehabilitation Plan. See Exhibit 19 for a copy of the Plan’s most recently

updated Rehabilitation Plan, effective as of January 1, 2011 and Amended and Restated

as of January 1, 2015.

 The Rehabilitation Plan contains the following schedules: Default Schedule

and Seven (7) Alternative Schedules, Schedule A through Schedule G.

 See Exhibit 20 demonstrating the Plan’s contributing employers’

contributions to the Plan pursuant to their applicable Rehabilitation Plan’s

schedule for the Plan Year ending December 31, 2015.

.10 Valuation Reports. See Exhibit 21 for copies of the 2014 and 2015 Plan Year

valuation reports for the Plan.

.11 Completed checklist. See Appendix C for the completed checklist of information

required to be included in the Plan’s application.
39

SECTION 8. RESUBMISSION REVIEW

This Section is not applicable. This application is not being submitted for a resubmission

review.

Request for a meeting. The Trustees respectfully request an in-person meeting to discuss the

issues involved if the Secretary is not inclined to approve the Plan’s application.

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

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

please contact the undersigned Trustees at PO Box 4928, Syracuse, NY 13221-4928, T:

315.455.9790, F: 315.234.1047, E: benefits@nytfund.org.

[SIGNATURE PAGE TO FOLLOW]
40 Redacted by the U.S. Department of the Treasury

Redacted by the U.S. Department of the Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 1
Redacted by the U.S. Department of the Treasury

Redacted by the U.S. Department of the Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 2
Redacted by the U.S. Department of the Treasury

Redacted by the U.S. Department of the Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 3
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 3.01 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

This report provides the information required by Section 3.01 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 3.01 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 3.01 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

Summary 1

Plan-year-by-plan-year projection of the available resources 2

Projection of benefit payments separated by status 3

Assumptions 4

Appendix A: New Entrant Profile 6

Appendix B: Demographic Assumptions 12

Appendix C: Certification of Critical and Declining Status 16
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

1

Plan actuary’s certification of critical and declining status

Under Section 3.01 of Revenue Procedure 2016-27, an application must include the plan actuary’s 

certification required under Section 432(b)(3)(A) of the Code that the plan is in critical and declining status 

as defined in Section 432(b)(6) of the Code for the plan year in which the application is submitted. 

Documentation supporting the actuarial certification of status must be included with the certification, 

including a plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) of 

the Code and the benefits under the plan, demonstrating that the plan is projected to become insolvent 

during the period described in Section 432(b)(6). The documentation must include a description of each of 

the assumptions used, including the new entrant profile, the total contribution base units and average 

contribution rates. The plan-year-by-plan-year projection must separately identify the market value of 

assets as of the beginning and end of each year in the relevant period and the following cash-flow items for 

each of those years: 

1. Contributions

2. Withdrawal liability payments

3. Benefit payments, separately identifying benefit payments with respect to current retirees and 

beneficiaries, terminated vested participants who are not currently receiving benefits, currently 

active participants, and future new entrants

4. Administrative expenses

5. Investment returns

On January 7, 2016, Horizon Actuarial submitted to the IRS the plan actuary’s certification required under 

Section 432(b)(3)(A) of the Code that the Plan is in critical and declining status as defined in Section 

432(b)(6) of the Code for the 2016 plan year. 

On that same date, Horizon Actuarial submitted a separate report to the Board of Trustees detailing the 

calculations and basis for the 2016 plan year certification. A copy of the January 7, 2016 report is 

included in this report as Appendix C. 

This report includes an exhibit showing the calculations to determine that the Plan is in critical and 

declining status for the 2016 plan year. This exhibit and the subsequent commentary in the report, and 

the appendices, includes all of the necessary information required in the application, as described above.

On the following pages, we have included:

 A plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) of 

the Code and the benefits under the plan, demonstrating that the plan is projected to become 

insolvent during the period described in Section 432(b)(6). 

 A plan-year-by-plan-year projection of the benefit payments, separated by projected payments 

made to current retirees and beneficiaries, terminated vested participants who are not currently 

receiving benefits, currently active participants, and future new entrants

 A description of each of the assumptions used in the projections, including the new entrant 

profile, the total contribution base units and average contribution rates.
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

2

Plan-year-by-plan-year projection of the available resources:

Note: The administrative expenses shown above include any regular Plan expenses and PBGC loans. Currently, the Plan does not have any 

PBGC loans.

Revenue Procedure 2016-27, Section 3.01: Certification of Critical and Declining Status

Assumed Annual Investment Return 8.50%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

P Y 12/31/2015 $ 1,409,993,285 $ 106,514,124 $ 10,294,468 $ (285,904,666) $ (7,297,500) $ 50,048,980 $ 1,283,648,691 $3,218,165,990 43.81% $ 1,569,553,357 5.490

CY 12/31/2016 1,283,648,691 113,243,953 10,223,554 (286,611,206) (6,711,615) 101,891,288 1,215,684,665 3,206,159,256 40.04% 1,502,295,871 5.242

1 12/31/2017 1,215,684,665 119,915,874 10,177,208 (287,936,280) (6,912,818) 96,331,066 1,147,259,715 3,192,530,923 38.08% 1,435,195,995 4.984

2 12/31/2018 1,147,259,715 121,527,484 10,160,988 (290,099,391) (7,120,275) 90,482,000 1,072,210,521 3,176,435,592 36.12% 1,362,309,912 4.696

3 12/31/2019 1,072,210,521 122,774,979 10,088,146 (291,845,589) (7,333,988) 84,069,445 989,963,514 3,156,527,055 33.97% 1,281,809,103 4.392

4 12/31/2020 989,963,514 123,801,665 10,088,146 (295,181,585) (7,553,955) 76,970,955 898,088,740 3,132,753,964 31.60% 1,193,270,325 4.042

5 12/31/2021 898,088,740 124,682,565 10,088,146 (298,352,435) (7,780,178) 69,054,662 795,781,500 3,102,923,888 28.94% 1,094,133,935 3.667

6 12/31/2022 795,781,500 125,464,933 10,088,146 (300,843,107) (8,013,698) 60,276,019 682,753,793 3,066,628,456 25.95% 983,596,900 3.269

7 12/31/2023 682,753,793 126,209,818 10,088,146 (302,741,917) (8,254,515) 50,609,388 558,664,713 3,024,025,542 22.58% 861,406,630 2.845

8 12/31/2024 558,664,713 126,948,184 10,088,146 (303,923,277) (8,502,630) 40,032,444 423,307,580 2,975,250,820 18.78% 727,230,857 2.393

9 12/31/2025 423,307,580 127,862,975 10,088,146 (304,196,933) (8,758,043) 28,543,480 276,847,205 2,920,556,727 14.49% 581,044,138 1.910

1 0 12/31/2026 276,847,205 128,707,080 10,088,146 (304,214,912) (9,020,753) 16,118,294 118,525,060 2,860,365,416 9.68% 422,739,972 1.390

1 1 12/31/2027 118,525,060 129,624,577 10,088,146 (302,878,958) (9,291,803) 2,745,163 INSOLVENT 2,794,564,901 4.24% 251,691,143 0.831

"PY" = preceding plan year; "CY" = current plan year
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

3

Projection of benefit payments, separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, currently active 

participants, and future new entrants:

Revenue Procedure 2016-27, Section 3.01: Projected Benefit Payments Separated by Status

Projected Benefit Payments by Status

Plan Year Total Retirees Terminated Future New

Ending Benefit Payments & Beneficiaries Vested Active Entrants

CY 12/31/2016 286,611,206 269,833,498 3,325,032 13,452,676 -

1 12/31/2017 287,936,280 263,350,104 5,183,792 19,402,384 -

2 12/31/2018 290,099,391 256,578,205 7,073,006 26,448,180 -

3 12/31/2019 291,845,589 249,573,030 9,041,720 33,230,839 -

4 12/31/2020 295,181,585 242,322,659 11,383,610 41,475,316 -

5 12/31/2021 298,352,435 234,845,397 13,679,186 49,827,852 -

6 12/31/2022 300,843,107 227,102,001 15,835,318 57,905,788 -

7 12/31/2023 302,741,917 219,121,249 18,391,473 65,229,195 -

8 12/31/2024 303,923,277 210,859,934 21,128,980 71,934,363 -

9 12/31/2025 304,196,933 202,348,715 23,574,113 78,274,105 -

1 0 12/31/2026 304,214,912 193,661,415 25,991,950 84,561,547 -

1 1 12/31/2027 302,878,958 184,731,819 27,996,428 90,150,711 -

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

4

Assumptions:

 Investment Return: The investment return is assumed to be 8.50% per year net of investment 

expenses.

 Discount Rate: The discount rate is assumed to be 8.50% per year.

 Contribution Rate Increases: Contribution rate increases are assumed to be 3.0% per year starting in 

2018. Prior to 2018, contribution rate increases are assumed to be based on the applicable schedule of 

the Rehabilitation Plan. Previously, contribution rate increases were based on the applicable schedule 

of the Rehabilitation Plan for all future years. There are multiple schedules with varying required 

contribution rate increases. The required contribution rate increases for each schedule of the 

Rehabilitation Plan are shown below:

o Default Schedule and Schedule G – 6.00% per year

o Schedule A – 6.00% per year

o Schedule B – 6.50% per year

o Schedule C – 6.75% per year

o Schedule D – 7.75% per year

o Schedule E – 8.25% per year

In late-2015 an arbitrator ruled that the above contribution rate increases were not reasonably 

sustainable. As a result, we used 3.00% contribution rate increases starting in 2018 for the certification 

based on guidance from the Board of Trustees.

 Active Participants: An active participant is a participant who has worked at least 500 hours in at least 

one of the prior three plan years and was not retired as of the valuation date. 

 Active Population: Based on a historical review of the entire active population, a 2.00% per year 

decrease in the active population was assumed. It is assumed that participants will not be reemployed 

following a break in service.

 Participant Data: There were 1,034 active participants without a date of birth. We assumed that these 

participants had entered the plan at the same age as the other active participants. There were 106 

terminated vested participants without a date of birth. We assumed these participants had the same 

age as the average terminated vested participant. There were 51 terminated vested participants who 

were over age 72 as of the valuation date who had not yet applied for a pension. It is extremely 

unlikely that these participants will ever collect a pension. Thus, they were excluded from the 

valuation. The impact of these data adjustments on plan liabilities was negligible.

 Marriage/Spouses: 80% of non-retired participants are assumed to be married. Female spouses are 

assumed to be three years younger than male spouses.

 Form of payment: Participants are assumed to elect the normal form of payment.
Revenue Procedure 2016-27 Section 3.01: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

5

 Administrative Expenses: Operating expenses were assumed to be equal to $6,438,000 in 2016 and are 

assumed to increase by 3.00% per year. The assumed operating expenses in 2016 are based on the 

actual operating expenses for 2015 and are adjusted for non-recurring special expenses.

 Contribution Base Units and Contribution Rates: There are significant differences in the contribution 

base units and contribution rates under each schedule of the Rehabilitation Plan. The table below 

shows the active participant count, average contribution base units and average contribution rate 

under each schedule of the Rehabilitation Plan. This information is based on census data as of January 

1, 2015.

For each active participant in the valuation, hours are assumed to be the average of a participant’s 

actual hours worked in the three plan years preceding the valuation date. Contributions made on 

behalf of each participant are assumed to be equal to the assumed hours worked multiplied by a 

participant’s contribution rate.

Note that the participant count in the Default Schedule shown above includes approximately 1,700 

active participants who are employed by a withdrawn employer but have yet to incur a three-year

break in service. We assume no future contributions on hours worked for these participants. After 

making this adjustment, the total assumed contribution base units is approximately 14.9 million hours.

 New Entrant Profile: See Appendix A for a description of the new entrant profile used in the 

projections. Note that we use different new entrant profiles for the different schedules of the 

Rehabilitation Plan.

 Mortality: See Appendix B for a description of the mortality assumption.

 Retirement: See Appendix B for a description of the retirement assumption.

 Disability: See Appendix B for a description of the disability assumption.

 Withdrawal: See Appendix B for a description of the withdrawal assumption.

Revenue Procedure 2016-27, Section 3.01: Active Participants, Base Units and Contribution Rates

Rehabilitation Participants Average Average Contribution

Plan Schedule as of 1/1/2015 Hours per Participant Rate per Participant

Default & G 4,805 1,248 3.5274

A 258 1,754 3.8287

B 2,660 1,103 9.9754

C 495 1,793 3.8200

D 100 1,718 3.7561

E 3,360 1,869 9.2705
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

6

New Entrant Profile

The new entrant profile used in the projections consists of a separate new entrant profile for each 

schedule of the Rehabilitation Plan. This is necessary because of the different characteristics of 

participants in each schedule. All new entrants are assumed to be male and are assumed to enter the 

Plan with 0.50 years of service.

The new entrant profile is developed to, as accurately as possible, estimate the impact of future new 

entrants on the Plan’s expected contributions, benefit payments and liabilities. Where appropriate, 

minor adjustments are made so that contributions, benefit payments and liabilities for new entrants are 

consistent with expectations.

The age of new entrants is based on a historical analysis of new entrants to the Plan over the six year 

period ending on December 31, 2014. The distribution of new entrants by age is as follows:

For each schedule, a distribution of the contribution rate that counts for benefit accruals and the total 

contribution is created. Based on this distribution and the age distribution of new entrants, the 

following new entrant profiles are created. Note that participants employed by employers that have 

withdrawn but have not yet incurred a three-year break in service are not included in this analysis.

Revenue Procedure 2016-27, Section 3.01: Historical New Entrants

Age New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants Total % of 

Band in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 New Entrants Total

< 25 179 131 140 150 137 232 969 19%

25 - 30 6 8 7 5 107 117 131 138 636 12%

30 - 35 231 286 562 479 313 292 2,163 42%

35 - 40 4 1 4 6 4 8 4 5 5 9 7 6 315 6 %

40 - 45 4 2 4 8 6 5 5 9 4 9 6 7 330 6 %

45 - 50 4 0 4 0 4 1 4 7 4 2 7 2 282 6 %

50 - 55 3 6 2 5 4 0 3 5 4 0 4 9 225 4 %

55 - 60 1 3 1 9 2 5 2 3 2 2 3 3 135 3 %

> 60 3 6 9 6 6 9 3 9 1 %

Total 653 676 1,037 961 799 968 5,094
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

7

New Entrant Profile for Default Schedule and Schedule G:

Revenue Procedure 2016-27, Section 3.01: Default Schedule and Schedule G New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,340 5 1.0929 1,464 1.3016 1,744

2 2 1,340 9 2.3178 3,106 2.6700 3,578

2 2 1,340 1 3.9419 5,282 4.5654 6,118

2 2 1,340 2 8.3121 11,138 9.3888 12,581

2 2 1,340 1 8.5579 11,468 10.2687 13,760

2 7 1,340 3 1.0929 1,464 1.3016 1,744

2 7 1,340 6 2.3178 3,106 2.6700 3,578

2 7 1,340 1 3.9419 5,282 4.5654 6,118

2 7 1,340 1 8.3121 11,138 9.3888 12,581

2 7 1,340 1 8.5579 11,468 10.2687 13,760

3 2 1,340 1 1 1.0929 1,464 1.3016 1,744

3 2 1,340 2 1 2.3178 3,106 2.6700 3,578

3 2 1,340 3 3.9419 5,282 4.5654 6,118

3 2 1,340 1 6.0415 8,096 7.1509 9,582

3 2 1,340 4 8.3121 11,138 9.3888 12,581

3 2 1,340 2 8.5579 11,468 10.2687 13,760

3 2 1,340 1 9.6679 12,955 12.4919 16,739

3 7 1,340 2 1.0929 1,464 1.3016 1,744

3 7 1,340 3 2.3178 3,106 2.6700 3,578

3 7 1,340 1 8.3121 11,138 9.3888 12,581

4 2 1,340 2 1.0929 1,464 1.3016 1,744

4 2 1,340 3 2.3178 3,106 2.6700 3,578

4 2 1,340 1 8.3121 11,138 9.3888 12,581

4 7 1,340 1 1.0929 1,464 1.3016 1,744

4 7 1,340 3 2.3178 3,106 2.6700 3,578

4 7 1,340 1 8.3121 11,138 9.3888 12,581

5 2 1,340 2 1.0929 1,464 1.3016 1,744

5 2 1,340 4 2.3178 3,106 2.6700 3,578

5 2 1,340 1 8.3121 11,138 9.3888 12,581
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

8

New Entrant Profile for Schedule A:

New Entrant Profile for Schedule B:

Revenue Procedure 2016-27, Section 3.01: Schedule A New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,755 2 0.3290 577 0.3800 667

2 2 1,755 7 2.4982 4,384 2.9603 5,195

2 2 1,755 1 1 4.1995 7,370 4.8791 8,563

2 7 1,755 1 0.3290 577 0.3800 667

2 7 1,755 4 2.4982 4,384 2.9603 5,195

2 7 1,755 7 4.1995 7,370 4.8791 8,563

3 2 1,755 3 0.3290 577 0.3800 667

3 2 1,755 1 5 2.4982 4,384 2.9603 5,195

3 2 1,755 2 4 4.1995 7,370 4.8791 8,563

3 7 1,755 1 0.3290 577 0.3800 667

3 7 1,755 2 2.4982 4,384 2.9603 5,195

3 7 1,755 3 4.1995 7,370 4.8791 8,563

4 2 1,755 1 0.3290 577 0.3800 667

4 2 1,755 2 2.4982 4,384 2.9603 5,195

4 2 1,755 4 4.1995 7,370 4.8791 8,563

4 7 1,755 2 2.4982 4,384 2.9603 5,195

4 7 1,755 3 4.1995 7,370 4.8791 8,563

5 2 1,755 1 0.3290 577 0.3800 667

5 2 1,755 3 2.4982 4,384 2.9603 5,195

5 2 1,755 4 4.1995 7,370 4.8791 8,563

Revenue Procedure 2016-27, Section 3.01: Schedule B New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,105 1 0.6399 707 0.7574 837

2 2 1,105 1 2.3385 2,584 2.9067 3,212

2 2 1,105 1 3.8356 4,238 4.9166 5,433

2 2 1,105 1 6 8.4520 9,340 10.6406 11,758

2 2 1,105 1 9.6255 10,636 13.8580 15,313

2 7 1,105 1 1 8.4520 9,340 10.6406 11,758

3 2 1,105 1 0.6399 707 0.7574 837

3 2 1,105 2 2.3385 2,584 2.9067 3,212

3 2 1,105 1 3.8356 4,238 4.9166 5,433

3 2 1,105 3 6 8.4520 9,340 10.6406 11,758

3 2 1,105 2 9.6255 10,636 13.8580 15,313

3 7 1,105 5 8.4520 9,340 10.6406 11,758

4 2 1,105 6 8.4520 9,340 10.6406 11,758

4 7 1,105 5 8.4520 9,340 10.6406 11,758

5 2 1,105 7 8.4520 9,340 10.6406 11,758
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

9

New Entrant Profile for Schedule C:

Revenue Procedure 2016-27, Section 3.01: Schedule C New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,795 1 1.2924 2,320 1.7950 3,222

2 2 1,795 9 1.8067 3,243 2.2747 4,083

2 2 1,795 7 3.7009 6,643 4.7278 8,486

2 2 1,795 2 6.7248 12,071 8.8815 15,942

2 7 1,795 1 1.2924 2,320 1.7950 3,222

2 7 1,795 6 1.8067 3,243 2.2747 4,083

2 7 1,795 4 3.7009 6,643 4.7278 8,486

2 7 1,795 1 6.7248 12,071 8.8815 15,942

3 2 1,795 3 1.2924 2,320 1.7950 3,222

3 2 1,795 2 0 1.8067 3,243 2.2747 4,083

3 2 1,795 1 5 3.7009 6,643 4.7278 8,486

3 2 1,795 4 6.7248 12,071 8.8815 15,942

3 7 1,795 3 1.8067 3,243 2.2747 4,083

3 7 1,795 2 3.7009 6,643 4.7278 8,486

3 7 1,795 1 6.7248 12,071 8.8815 15,942

4 2 1,795 3 1.8067 3,243 2.2747 4,083

4 2 1,795 2 3.7009 6,643 4.7278 8,486

4 2 1,795 1 6.7248 12,071 8.8815 15,942

4 7 1,795 3 1.8067 3,243 2.2747 4,083

4 7 1,795 2 3.7009 6,643 4.7278 8,486

4 7 1,795 1 6.7248 12,071 8.8815 15,942

5 2 1,795 1 1.2924 2,320 1.7950 3,222

5 2 1,795 4 1.8067 3,243 2.2747 4,083

5 2 1,795 3 3.7009 6,643 4.7278 8,486

5 2 1,795 1 6.7248 12,071 8.8815 15,942
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

10

New Entrant Profile for Schedule D:

Revenue Procedure 2016-27, Section 3.01: Schedule D New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,720 1 1.4600 2,511 1.8827 3,238

2 2 1,720 5 2.0916 3,598 2.8254 4,860

2 2 1,720 1 3 3.1945 5,495 4.2849 7,370

2 7 1,720 1 1.4600 2,511 1.8827 3,238

2 7 1,720 3 2.0916 3,598 2.8254 4,860

2 7 1,720 8 3.1945 5,495 4.2849 7,370

3 2 1,720 2 1.4600 2,511 1.8827 3,238

3 2 1,720 1 2 2.0916 3,598 2.8254 4,860

3 2 1,720 2 8 3.1945 5,495 4.2849 7,370

3 7 1,720 2 2.0916 3,598 2.8254 4,860

3 7 1,720 4 3.1945 5,495 4.2849 7,370

4 2 1,720 2 2.0916 3,598 2.8254 4,860

4 2 1,720 4 3.1945 5,495 4.2849 7,370

4 7 1,720 2 2.0916 3,598 2.8254 4,860

4 7 1,720 4 3.1945 5,495 4.2849 7,370

5 2 1,720 2 2.0916 3,598 2.8254 4,860

5 2 1,720 5 3.1945 5,495 4.2849 7,370
Appendix A: Revenue Procedure 2016-27 Section 3.01

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

11

New Entrant Profile for Schedule E:

Revenue Procedure 2016-27, Section 3.01: Schedule E New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,875 3 1.2394 2,324 1.6862 3,162

2 2 1,875 3 1.6962 3,180 2.3390 4,386

2 2 1,875 1 3.4209 6,414 4.7432 8,894

2 2 1,875 1 4.7490 8,904 6.5246 12,234

2 2 1,875 1 1 9.5324 17,873 13.8000 25,875

2 7 1,875 2 1.2394 2,324 1.6862 3,162

2 7 1,875 2 1.6962 3,180 2.3390 4,386

2 7 1,875 1 3.4209 6,414 4.7432 8,894

2 7 1,875 7 9.5324 17,873 13.8000 25,875

3 2 1,875 6 1.2394 2,324 1.6862 3,162

3 2 1,875 6 1.6962 3,180 2.3390 4,386

3 2 1,875 3 3.4209 6,414 4.7432 8,894

3 2 1,875 1 4.7490 8,904 6.5246 12,234

3 2 1,875 1 8.3806 15,714 11.4231 21,418

3 2 1,875 2 5 9.5324 17,873 13.8000 25,875

3 7 1,875 1 1.2394 2,324 1.6862 3,162

3 7 1,875 1 1.6962 3,180 2.3390 4,386

3 7 1,875 4 9.5324 17,873 13.8000 25,875

4 2 1,875 1 1.2394 2,324 1.6862 3,162

4 2 1,875 1 1.6962 3,180 2.3390 4,386

4 2 1,875 4 9.5324 17,873 13.8000 25,875

4 7 1,875 1 1.2394 2,324 1.6862 3,162

4 7 1,875 1 1.6962 3,180 2.3390 4,386

4 7 1,875 3 9.5324 17,873 13.8000 25,875

5 2 1,875 1 1.2394 2,324 1.6862 3,162

5 2 1,875 1 1.6962 3,180 2.3390 4,386

5 2 1,875 1 3.4209 6,414 4.7432 8,894

5 2 1,875 5 9.5324 17,873 13.8000 25,875
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

12

Demographic Assumptions

This appendix includes the mortality, retirement, disability and withdrawal assumptions used in the 

projections shown in Section 3.01 of Revenue Procedure 2016-27. These assumptions are based on 

historical and current demographic data, adjusted to reflect estimated future experience in the Plan, the 

purpose of the measurement, and professional judgment.

Mortality:

Non-Disabled Participants and Beneficiaries: The sex distinct RP-2000 Blue Collar Mortality Tables

projected to 2006 with Scale BB.

Disabled Participants: The sex distinct RP-2000 Disabled Mortality Tables projected to 2006 with Scale BB.

Retirement: The retirement assumption varies by Rehabilitation Plan Schedule.

Default Schedule and Schedule G

Less than 30 

Years of 

Service 

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

Schedule A

Less than 30 

Years of 

Service

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.25

.30

.40

.50

1.00

.12

.05

.08

.30

.33

.41

.50

1.00

.12

.05

.08

.30

.33

.41

.50

1.00

.14

.08

.11

.34

.36

.42

.50

1.00

.16

.11

.14

.38

.39

.44

.50

1.00

.18

.14

.17

.42

.42

.46

.50

1.00

.20

.17

.20

.46

.46

.48

.50

1.00

.22

.21

.23

.50

.50

.50

.50

1.00

.15

.15

.15

.50

.50

.50

.50

1.00

.35

.35

.35

.50

.50

.50

.50

1.00
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

13

Schedule B

Less than 30 

Years of 

Service 

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.05

.50

.50

.50

.50

1.00

.12

.05

.08

.50

.50

.50

.50

1.00

.12

.05

.08

.50

.50

.50

.50

1.00

.14

.08

.11

.50

.50

.50

.50

1.00

.16

.11

.14

.50

.50

.50

.50

1.00

.18

.14

.17

.50

.50

.50

.50

1.00

.20

.17

.20

.50

.50

.50

.50

1.00

.22

.21

.23

.50

.50

.50

.50

1.00

.15

.15

.15

.50

.50

.50

.50

1.00

.35

.35

.35

.50

.50

.50

.50

1.00

Schedule C

Less than 30 

Years of 

Service 

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

1.00

.14

.08

.50

.50

.50

.50

.50

1.00

.16

.11

.50

.50

.50

.50

.50

1.00

.18

.14

.50

.50

.50

.50

.50

1.00

.20

.17

.50

.50

.50

.50

.50

1.00

.22

.21

.50

.50

.50

.50

.50

1.00

.15

.15

.50

.50

.50

.50

.50

1.00

.35

.35

.50

.50

.50

.50

.50

1.00

Schedule D

Less than 30 

Years of 

Service

On or After 30 Years of Service

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56

57-59

60-61

62

63

64

65-66

67

.10

.02

.02

.05

.25

.30

.40

.50

1.00

.10

.02

.50

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

.50

1.00

.12

.05

.50

.50

.50

.50

.50

.50

1.00

.14

.08

.50

.50

.50

.50

.50

.50

1.00

.16

.11

.50

.50

.50

.50

.50

.50

1.00

.18

.14

.50

.50

.50

.50

.50

.50

1.00

.20

.17

.50

.50

.50

.50

.50

.50

1.00

.22

.21

.50

.50

.50

.50

.50

.50

1.00

.15

.15

.50

.50

.50

.50

.50

.50

1.00

.35

.35

.50

.50

.50

.50

.50

.50

1.00
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

14

Schedule E

Less than 30 

Years of 

Service 

On or After 30 Years of Service 

Service as of 1/1/2011

Age < 25 25 26 27 28 29 30 31 32-35 >35

55

56-59

60-61

62

63

64

65-66

67

.10

.02

.05

.25

.30

.40

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

.50

.50

.50

.50

.50

.50

.50

1.00

Inactive vested participants: Age 65.

Disability:

Illustrations of the annual rates of disablement are shown in the table below for selected ages (the same 

rates are used for males and females):

Representative Disability Rates

Attained Age Rate (%)

20

25

30

35

40

45

50

55

60

0.04%

0.06%

0.07%

0.10%

0.15%

0.24%

0.41%

0.67%

1.09%
Appendix B: Revenue Procedure 2016-27 Section 3.01

Demographic Assumptions

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

15

Withdrawal:

Illustrations of the annual rates of withdrawal (for reasons other than mortality or disablement) are shown 

in the table below for selected ages (the same rates are used for males and females):

Representative Withdrawal Rates

Attained Age Rate (%)

20

25

30

35

40

45

50

55

60

22.00%

17.00%

12.00%

7.82%

6.92%

6.02%

5.12%

4.22%

3.32%
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

16
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

17

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. 

Department of the Treasury
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

18
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

19
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

20
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

21
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

22
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

23
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

24
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

25
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

26
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

27
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

28
Appendix C: Revenue Procedure 2016-27 Section 3.01

Certification of Critical and Declining Status

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.01 of Revenue Procedure 2016-27

29

Redacted by the U.S. Department of the 

Treasury
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 4
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 3.02 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

This report provides the information required by Section 3.02 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 3.02 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 3.02 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the Treasury

Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

Summary 1

Development of projected assets as of December 31, 2016 2

Plan-year-by-plan-year projection of the available resources 3

Projection of benefit payments separated by status 4

Assumptions 5

Actuarial Certification 8

Appendix A: New Entrant Profile 9

Appendix B: Investment Return Assumption 16
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

1

Plan actuary’s certification that the plan is projected to avoid insolvency

Under Section 3.02 of Revenue Procedure 2016-27, the plan actuary must certify to the plan sponsor under 

Section 432(e)(9)(C)(i) of the Code that the plan is projected to avoid insolvency within the meaning of 

Section 418E of the Code, taking into account the proposed benefit suspension and assuming that the 

proposed suspension continues until it expires by its own terms or, if no such expiration date is set, 

indefinitely. Documentation supporting the actuarial certification under Section 432(e)(9)(C)(i) of the Code 

must be included with the certification, including a plan-year-by-plan-year projection of the available 

resources within the meaning of Section 418E(b)(3) of the Code and the benefits under the plan 

demonstrating the avoidance of insolvency of the plan over the extended period described in Treasury and 

IRS regulation Section 1.432(e)(9)-1(d)(5)(ii)(C). The documentation must include a description of each of 

the assumptions used, including the new entrant profile, the total contribution base units and average 

contribution rates. The plan-year-by-plan-year projection must separately identify the market value of 

assets as of the beginning and end of the initial period and each subsequent plan year in the extended

period and the following cash-flow items for each of those plan years: 

1. Contributions

2. Withdrawal liability payments

3. Benefit payments, separately identifying benefit payments with respect to current retirees and 

beneficiaries, terminated vested participants who are not currently receiving benefits, currently 

active participants, and future new entrants

4. Administrative expenses

5. Investment returns

On the following pages, we have included:

 A projection of the Plan’s assets as of December 31, 2016 (the end of the initial period), 

incorporating actual asset returns through June 30, 2016.

 A plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) of 

the Code and the benefits under the plan, demonstrating the avoidance of insolvency of the plan 

over the extended period. 

 A plan-year-by-plan-year projection of the benefit payments, separated by projected payments 

made to current retirees and beneficiaries, terminated vested participants who are not currently 

receiving benefits, currently active participants, and future new entrants.

 A description of each of the assumptions used in the projections, including the new entrant 

profile, the total contribution base units and average contribution rates.

 The Plan actuary’s certification to the plan sponsor under Section 432(e)(9)(C)(i) of the Code that 

the plan is projected to avoid insolvency within the meaning of Section 418E of the Code.
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

2

Development of Projected Assets as of December 31, 2016:

The exhibit below shows the development of the projected Plan assets as of December 31, 2016 (the end of the 

initial period). This projection is based on actual asset values as of June 30, 2016, as provided by the Fund 

Office. The return on assets for the period July 1, 2016 through December 31, 2016 is based on the Plan’s 

assumed annual investment return of 6.75%. Please see Appendix B for more information regarding the 

investment return assumption.

Revenue Procedure 2016-27, Determination of Plan Assets as of December 31, 2016 

(Based on Actual Plan Assets as of June 30, 2016)

Assumed Annual Investment Return 6.75%

Actual Results Projected Results Total for

Period: Period: 2016

1/1/2016 - 6/30/2016 7/1/2016 - 12/31/2016 Plan Year

Assets at Beginning of Period $ 1,246,018,691 $ 1,214,085,423 $ 1,246,018,691

Employer Contributions 59,157,725 54,242,978 113,400,703

Withdrawal Liability Payments 7,562,417 2,070,843 9,633,260

Benefit Payments (140,667,860) (147,582,357) (288,250,217)

Operating Expenses (5,792,979) (4,486,071) (10,279,050)

Return on Assets 47,807,429 38,716,845 86,524,274

Assets at End of Period 1,214,085,423 1,157,047,661 1,157,047,661

Note that the asset amounts differ from those shown on the Fund's asset statements 

 because withdrawal liability receivables are not included.

Withdrawal liability payments are included in the projected assets based on the projected date of payment.
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

3

Plan-year-by-plan-year projection of the available resources:

Note: The administrative expenses shown above include any regular Plan expenses and PBGC loans. Currently, the Plan does not have any PBGC loans.

Revenue Procedure 2016-27, Section 3.02: The Plan is Projected to Avoid Insolvency

Assumed Investment Return 6.75% for 10 years, 7.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 86,524,274 1,157,047,661 3,311,681,836 37.62% 1,445,297,878 5.014

1 12/31/2017 1,157,047,661 121,451,426 9,586,913 (260,756,505) (9,853,710) 73,390,166 1,090,865,951 3,306,369,346 34.99% 1,351,622,456 5.183

2 12/31/2018 1,090,865,951 125,299,440 9,570,693 (232,949,423) (7,136,955) 70,082,403 1,055,732,109 2,583,054,571 42.23% 1,288,681,532 5.532

3 12/31/2019 1,055,732,109 129,104,157 9,497,851 (235,102,412) (7,235,993) 67,760,814 1,019,756,527 2,573,839,082 41.02% 1,254,858,939 5.337

4 12/31/2020 1,019,756,527 132,915,501 9,497,851 (237,371,551) (6,815,865) 65,398,691 983,381,154 2,561,580,101 39.81% 1,220,752,704 5.143

5 12/31/2021 983,381,154 136,794,009 9,497,851 (240,022,859) (6,918,030) 62,981,323 945,713,447 2,545,898,575 38.63% 1,185,736,306 4.940

6 12/31/2022 945,713,447 140,066,105 9,497,851 (242,321,394) (7,022,280) 60,468,092 906,401,821 2,526,107,290 37.44% 1,148,723,215 4.740

7 12/31/2023 906,401,821 143,397,886 9,497,851 (244,243,691) (7,127,573) 57,858,574 865,784,868 2,502,230,140 36.22% 1,110,028,559 4.545

8 12/31/2024 865,784,868 146,856,501 9,497,851 (245,606,973) (7,234,950) 55,184,023 824,481,320 2,474,320,283 34.99% 1,070,088,293 4.357

9 12/31/2025 824,481,320 150,470,329 9,497,851 (246,453,271) (7,343,370) 52,485,778 783,138,636 2,442,627,517 33.75% 1,029,591,907 4.178

1 0 12/31/2026 783,138,636 154,187,423 9,497,851 (246,404,078) (7,453,875) 55,353,922 748,319,879 2,407,380,128 32.53% 994,723,957 4.037

1 1 12/31/2027 748,319,879 157,989,023 9,497,851 (245,911,190) (7,565,423) 52,899,376 715,229,516 2,369,225,471 31.59% 961,140,706 3.908

1 2 12/31/2028 715,229,516 161,966,559 9,497,851 (244,705,543) (7,679,055) 50,607,707 684,917,035 2,328,392,317 30.72% 929,622,578 3.799

1 3 12/31/2029 684,917,035 166,030,497 9,475,797 (243,043,092) (7,793,730) 48,543,883 658,130,389 2,285,412,352 29.97% 901,173,481 3.708

1 4 12/31/2030 658,130,389 170,270,698 9,425,111 (241,470,233) (7,910,490) 46,746,595 635,192,069 2,240,594,177 29.37% 876,662,303 3.631

1 5 12/31/2031 635,192,069 169,563,680 9,251,903 (239,420,826) (8,029,335) 45,065,609 611,623,102 2,193,702,148 28.96% 851,043,927 3.555

1 6 12/31/2032 611,623,102 168,862,638 8,949,319 (237,240,370) (8,150,265) 43,337,532 587,381,956 2,145,072,932 28.51% 824,622,326 3.476

1 7 12/31/2033 587,381,956 168,190,146 8,949,319 (233,684,250) (8,272,238) 41,623,008 564,187,942 2,094,710,727 28.04% 797,872,192 3.414

1 8 12/31/2034 564,187,942 167,514,392 4,474,660 (229,803,938) (8,396,295) 39,831,176 537,807,937 2,043,922,818 27.60% 767,611,875 3.340

1 9 12/31/2035 537,807,937 166,887,631 - (225,711,150) (8,522,438) 37,810,122 508,272,103 1,993,027,459 26.98% 733,983,253 3.252

2 0 12/31/2036 508,272,103 166,266,861 - (220,932,891) (8,650,665) 35,746,032 480,701,440 1,942,254,068 26.17% 701,634,331 3.176

2 1 12/31/2037 480,701,440 165,712,716 - (215,299,990) (8,779,935) 33,863,838 456,198,069 1,892,344,518 25.40% 671,498,059 3.119

2 2 12/31/2038 456,198,069 165,172,640 - (209,388,299) (8,911,290) 32,222,595 435,293,714 1,844,281,344 24.74% 644,682,014 3.079

2 3 12/31/2039 435,293,714 164,651,382 - (203,122,786) (9,044,730) 30,865,174 418,642,754 1,798,527,785 24.20% 621,765,540 3.061

2 4 12/31/2040 418,642,754 164,117,484 - (197,058,621) (9,180,255) 29,818,654 406,340,016 1,755,665,519 23.85% 603,398,637 3.062

2 5 12/31/2041 406,340,016 163,535,462 - (190,435,568) (9,317,865) 29,117,327 399,239,373 1,715,743,348 23.68% 589,674,941 3.096

2 6 12/31/2042 399,239,373 163,004,478 - (183,914,711) (9,457,560) 28,804,161 397,675,741 1,679,608,776 23.77% 581,590,452 3.162

2 7 12/31/2043 397,675,741 162,491,114 - (177,237,175) (9,599,340) 28,912,728 402,243,068 1,647,490,586 24.14% 579,480,243 3.270

2 8 12/31/2044 402,243,068 161,975,665 - (170,161,875) (9,743,205) 29,495,877 413,809,529 1,619,906,781 24.83% 583,971,405 3.432

2 9 12/31/2045 413,809,529 161,490,611 - (163,898,114) (9,889,155) 30,574,590 432,087,462 1,597,670,274 25.90% 595,985,576 3.636

3 0 12/31/2046 432,087,462 161,014,586 - (157,586,141) (10,037,190) 32,158,732 457,637,450 1,580,398,195 27.34% 615,223,590 3.904

3 1 12/31/2047 457,637,450 160,566,917 - (151,683,176) (10,187,310) 34,273,925 490,607,806 1,568,572,887 29.18% 642,290,981 4.234

3 2 12/31/2048 490,607,806 160,096,890 - (145,931,901) (10,340,558) 36,939,002 531,371,239 1,562,239,305 31.40% 677,303,140 4.641

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

4

Projection of benefit payments, separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, currently active 

participants, and future new entrants:

Revenue Procedure 2016-27, Section 3.02: Projected Benefit Payments Separated by Status

Projected Benefit Payments by Status

Plan Year Total Retirees Terminated Future New

Ending Benefit Payments & Beneficiaries Vested Active Entrants

CY 12/31/2016 288,250,217 277,386,773 2,017,766 8,845,678 -

1 12/31/2017 260,756,505 243,763,264 3,413,607 13,579,634 -

2 12/31/2018 232,949,423 210,608,602 4,335,260 18,005,561 -

3 12/31/2019 235,102,412 204,846,793 5,778,871 24,476,748 -

4 12/31/2020 237,371,551 198,946,618 7,550,751 30,874,182 -

5 12/31/2021 240,022,859 192,872,310 9,262,830 37,887,719 -

6 12/31/2022 242,321,394 186,649,451 10,932,396 44,739,547 -

7 12/31/2023 244,243,691 180,258,255 12,963,057 51,022,379 -

8 12/31/2024 245,606,973 173,682,271 15,037,534 56,887,168 -

9 12/31/2025 246,453,271 166,935,775 16,950,033 62,567,463 -

1 0 12/31/2026 246,404,078 160,086,584 18,752,525 67,564,969 -

1 1 12/31/2027 245,911,190 153,095,947 20,393,856 72,421,387 -

1 2 12/31/2028 244,705,543 145,920,783 22,002,145 76,782,615 -

1 3 12/31/2029 243,043,092 138,688,902 23,585,861 80,768,329 -

1 4 12/31/2030 241,470,233 131,363,603 24,814,230 85,083,291 209,109

1 5 12/31/2031 239,420,826 123,995,672 26,282,178 88,655,089 487,887

1 6 12/31/2032 237,240,370 116,608,297 27,431,227 92,321,902 878,944

1 7 12/31/2033 233,684,250 109,248,808 28,054,836 95,058,118 1,322,488

1 8 12/31/2034 229,803,938 101,946,239 28,596,438 97,432,746 1,828,515

1 9 12/31/2035 225,711,150 94,746,552 29,068,809 99,426,026 2,469,763

2 0 12/31/2036 220,932,891 87,663,464 29,313,414 100,804,908 3,151,105

2 1 12/31/2037 215,299,990 80,724,069 29,279,013 101,401,388 3,895,520

2 2 12/31/2038 209,388,299 73,973,539 29,134,872 101,588,345 4,691,543

2 3 12/31/2039 203,122,786 67,443,399 28,809,054 101,328,760 5,541,573

2 4 12/31/2040 197,058,621 61,165,610 28,274,898 101,052,035 6,566,078

2 5 12/31/2041 190,435,568 55,159,488 27,581,687 100,071,009 7,623,384

2 6 12/31/2042 183,914,711 49,447,111 26,819,250 98,912,861 8,735,489

2 7 12/31/2043 177,237,175 44,054,221 25,985,531 97,304,899 9,892,524

2 8 12/31/2044 170,161,875 38,997,330 24,964,402 95,097,805 11,102,338

2 9 12/31/2045 163,898,114 34,288,747 23,944,554 93,161,992 12,502,821

3 0 12/31/2046 157,586,141 29,936,337 22,964,236 90,739,777 13,945,791

3 1 12/31/2047 151,683,176 25,943,364 21,901,604 88,059,526 15,778,682

3 2 12/31/2048 145,931,901 22,308,862 20,647,842 85,151,718 17,823,479

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

5

Assumptions:

Generally, the assumptions used in the actuarial projection above are the same as those used in the actuarial 

projection required under Section 3.01 of Revenue Procedure 2016-27. Please refer to the actuarial projection 

under Section 3.01 of Revenue Procedure 2016-27 for more information regarding the assumptions. Where 

assumptions differ from those described under Section 3.01 of Revenue Procedure 2016-27, additional 

commentary is provided below.

 Contribution Rate Increases: Contribution rate increases are assumed to be equal to those required 

under the Rehabilitation Plan until 2018. Starting in 2018, contribution rate increases are assumed to 

be 3.5% per year for 4 years, then 3.0% per year for 9 years, and then 0.0% thereafter. This assumption 

was selected based on guidance and information provided in good faith from the Board of Trustees.

The Trustees last updated the Rehabilitation Plan in 2012, prior to the passage of MPRA. The 

Rehabilitation Plan included an exhaustion of all reasonable measures and a stated goal of forestalling 

possible insolvency. The various schedules of the Rehabilitation Plan required contribution rate 

increases between 6.00% and 8.25% per year, continuing indefinitely. After reviewing experience 

through 2015, there was disagreement among the Board of Trustees about whether these contribution 

rate increases were sustainable. Following arbitration, it was determined that the increases required 

under the Rehabilitation Plan were in fact unsustainable.

In preparing this application for a suspension of benefits, the schedules for future increases in 

contribution rates were reevaluated. As part of this review, consideration was given to macroeconomic 

factors, the financial strength of participating employers, competition in the marketplace, the 

relationship between contributions and benefit levels, and expected changes in wage packages over the

next several years. Based on this review, the assumption described above was developed. 

 Active Population: Based on guidance provided in good faith from the Board of Trustees and a 

historical review of the active population (including an analysis of the population of certain contributing 

employers), the following changes in the active population were assumed:

o The number of participants employed by United Parcel Service (UPS), ABF Freight (ABF) and 

Yellow Roadway Corporation (YRC) is assumed to remain at 2016 levels throughout the 

projection period. 2016 levels are equal to the count of these participants in the January 1, 

2016 actuarial valuation.

o The number of all participants not employed by UPS, ABF or YRC is assumed to decline by 2% 

per year.

Please see the historical information required under Section 6.03 of Revenue Procedure 2016-27 for 

more information regarding the active population. Also note that while we are not assuming any future 

employer withdrawals as part of the 2% per year population decline, any withdrawal from the Fund 

would result in approximately 20 years of withdrawal liability payments.

 Non-Disabled Mortality: The non-disabled mortality assumption has changed from the sex-distinct 

RP2000 Mortality Tables with Blue Collar adjustment projected 6 years with Scale BB to the sex-distinct 

RP2014 Mortality Tables with Blue Collar adjustment loaded by 15% and projected generationally using 
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

6

50% of the MP2015 projection scale. This change was made to better reflect anticipated changes in 

mortality rates over the projection period. While the base mortality rates as of 2016 for the revised 

assumption are approximately equal to the base mortality rates in the prior assumption, the choice to 

add a generational projection was in part made as a result of the Plan projecting solvency over the 

projection period instead of insolvency in the short-term. This assumption was chosen based on a 

review of standard mortality tables and projection scales, historical and current demographic data, and 

reflecting anticipated future experience and professional judgment.

 Disabled Mortality: The non-disabled mortality assumption has changed from the sex-distinct RP2000 

Disabled Mortality Tables projected 6 years with Scale BB to the sex-distinct RP2014 Disabled Mortality 

Tables loaded by 15% and projected generationally using 50% of the MP2015 projection scale. This 

change was made to better reflect anticipated changes in mortality rates over the projection period. 

While the base mortality rates as of 2016 for the revised assumption are approximately equal to the 

base mortality rates in the prior assumption, the choice to add a generational projection was in part 

made as a result of the Plan projecting solvency over the projection period instead of insolvency in the 

short-term. This assumption was chosen based on a review of standard mortality tables and projection 

scales, historical and current demographic data, and reflecting anticipated future experience and 

professional judgment

 Contribution Base Units and Contribution Rates: There are significant differences in the contribution 

base units and contribution rates under each schedule of the Rehabilitation Plan. The table below 

shows the active participant count, average contribution base units and average contribution rate 

under each schedule of the Rehabilitation Plan. This information is based on census data as of January 

1, 2016. Note that because of the active population scenario described above, results are shown 

separately for UPS, ABF and YRC.

For each active participant in the valuation, hours are assumed to be the average of a participant’s 

actual hours worked in the three plan years preceding the valuation date. Contributions made on 

behalf of each participant are assumed to be equal to the assumed hours worked multiplied by a 

participant’s contribution rate.

Note that the participant count in the Default Schedule shown above includes approximately 1,600 

active participants who are employed by a withdrawn employer but have yet to incur a three-year

Revenue Procedure 2016-27, Section 3.02: Active Participants, Base Units and Contribution Rates

Rehabilitation Participants Average Average Contribution

Plan Schedule as of 1/1/2016 Hours per Participant Rate per Participant

Default 4,271 1,021 4.0614

A 2 1 1,665 3.8210

B 532 1,248 6.8826

B (UPS) 2,216 1,034 11.4038

C 519 1,734 4.1211

D 9 8 1,648 4.0850

E 1,422 1,733 3.7458

E (UPS & ABF) 1,917 1,954 14.6148

G (YRC) 580 1,799 2.3361
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

7

break in service. We assume no future contributions on hours worked for these participants. After 

making this adjustment, the total assumed contribution base units is approximately 14.7 million hours.

 New Entrant Profile: See Appendix A for a description of the new entrant profile used in the 

projections. Note that we use a different new entrant profile for each schedule of the Rehabilitation 

Plan and also use a different new entrant profile for employees of contributing employers that are 

isolated as part of the active population assumption.

 Investment Return: The investment return is assumed to be 6.75% per year for the 10 years beginning 

January 1, 2016, and 7.50% thereafter. Please see Appendix B for additional information regarding the 

investment return assumption.

 Administrative Expenses: Regular operating expenses are assumed to be equal to $6,160,000 in 2016 

and are assumed to increase by 1.50% per year. In addition, we have assumed the following nonrecurring special expenses:

Year 2016 2017 2018 2019

Special Legal Expenses $2,700,000 $2,700,000 $500,000 $500,000

Special Suspension Related Expenses $1,000,000 $500,000 $0 $0

The assumed regular operating expenses are based on the actual operating expenses for 2015, adjusted 

for non-recurring special expenses. The assumed 1.50% annual increase in regular operating expenses 

was developed based on an analysis of historical changes in the operating expenses of the Plan and 

guidance from the Fund Office regarding future expectations of operating expenses. The special, nonrecurring legal and suspension related expenses were developed based on guidance from the Board of 

Trustees and Plan Counsel.
Revenue Procedure 2016-27 Section 3.02: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

8 

Actuarial Certification 

As Plan Actuary, I certify that the plan is projected to avoid insolvency within the meaning of Section 418E of 

the Code, taking into account the proposed benefit suspension and assuming that the proposed suspension 

continues indefinitely. 

This certification was performed based upon actuarial projections of assets and liabilities for the current and 

succeeding plan years, including any proposed benefit suspensions. These projections are based on reasonable 

actuarial estimates, assumptions, and methods that offer my best estimate of anticipated experience under the 

Plan. The projected present value of Plan liabilities as of the beginning of the Plan Year was determined based 

on a projection of the actuarial valuation of the Plan as of January 1, 2016. The projections of Plan assets are 

based the estimated market value of assets as of June 30, 2016 and the assumption that future net investment 

returns will be 6.75% per year for 10 years and then 7.50% thereafter. 

The actuarial projection used in this certification is based on the same actuarial assumptions used in the 

actuarial projection under Section 3.01 of Revenue Procedure 2016-27, with the exceptions noted above. 

The actuarial projection of Plan assets is also based on a projection of industry activity and employer 

contributions for the current and succeeding plan years. The projection of industry activity (in other words, 

covered employment levels) is based on information provided in good faith by the Board of Trustees. See 

above for additional information regarding the active population assumption. 

Projections of Plan liabilities were performed using an open group valuation methodology. In other words, 

each year, hypothetical new entrants were added to the population to achieve the expected level of projected 

industry activity which was developed based on information provided by the Board of Trustees. The 

demographic characteristics of the assumed new entrants were developed based on a review of new 

participants under the Plan in recent years. 

Certified by: 

James M. Locey, EA, MAAA

Horizon Actuarial Services, LLC

8601 Georgia Avenue, Suite 700

Silver Spring, MD 20910

Phone Number: (240) 247-4600

Enrollment Number: 14-03981

Date: August 31, 2016

Redacted by the U.S. Department of the Treasury
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

9

New Entrant Profile

The new entrant profile used in the projections consists of a separate new entrant profile for each 

schedule of the Rehabilitation Plan. In addition, because of the industry activity assumption 

recommended by the Board of Trustees, there is a separate new entrant profile for UPS participants in 

Schedule B, UPS and ABF participants in Schedule E, and YRC participants in Schedule G. This is 

necessary because of the different characteristics of participants in each schedule. All new entrants are 

assumed to be male and are assumed to enter the Plan with 0.50 years of service.

The new entrant profile is developed to, as accurately as possible, estimate the impact of future new 

entrants on the Plan’s expected contributions, benefit payments and liabilities. Where appropriate, 

minor adjustments are made so that contributions, benefit payments and liabilities for new entrants are 

consistent with expectations.

The age of new entrants is based on a historical analysis of new entrants to the Plan over the seven year 

period ending on December 31, 2015. The distribution of new entrants by age is as follows:

For each schedule or subset of a schedule, a distribution of the contribution rate that counts for benefit 

accruals and the total contribution is created. Based on this distribution and the age distribution of new 

entrants, the following new entrant profiles are created. Note that participants employed by employers 

that have withdrawn but have not yet incurred a three-year break in service are not included in this 

analysis.

Revenue Procedure 2016-27, Section 3.02: Historical New Entrants

Age New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants Total % of 

Band in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 New Entrants Total

< 25 179 131 140 150 137 232 187 1,156 19%

25 - 30 6 8 7 5 107 117 131 138 171 807 13%

30 - 35 231 286 562 479 313 292 245 2,408 40%

35 - 40 4 1 4 6 4 8 4 5 5 9 7 6 9 9 414 7 %

40 - 45 4 2 4 8 6 5 5 9 4 9 6 7 6 4 394 7 %

45 - 50 4 0 4 0 4 1 4 7 4 2 7 2 6 7 349 6 %

50 - 55 3 6 2 5 4 0 3 5 4 0 4 9 4 7 272 5 %

55 - 60 1 3 1 9 2 5 2 3 2 2 3 3 2 7 162 3 %

> 60 3 6 9 6 6 9 1 4 5 3 1 %

Total 653 676 1,037 961 799 968 921 6,015
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

10

New Entrant Profile for Default Schedule:

Revenue Procedure 2016-27, Section 3.02: Default Schedule New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 4 0.9778 1,222 1.2125 1,516

2 2 1,250 8 2.2818 2,852 2.8635 3,579

2 2 1,250 3 3.8529 4,816 4.7442 5,930

2 2 1,250 1 5.9065 7,383 7.3358 9,170

2 2 1,250 3 8.4518 10,565 10.3118 12,890

2 2 1,250 1 9.6476 12,060 13.1562 16,445

2 7 1,250 3 0.9778 1,222 1.2125 1,516

2 7 1,250 5 2.2818 2,852 2.8635 3,579

2 7 1,250 2 3.8529 4,816 4.7442 5,930

2 7 1,250 2 8.4518 10,565 10.3118 12,890

3 2 1,250 9 0.9778 1,222 1.2125 1,516

3 2 1,250 1 6 2.2818 2,852 2.8635 3,579

3 2 1,250 6 3.8529 4,816 4.7442 5,930

3 2 1,250 1 5.9065 7,383 7.3358 9,170

3 2 1,250 1 7.7506 9,688 9.1720 11,465

3 2 1,250 6 8.4518 10,565 10.3118 12,890

3 2 1,250 1 9.6476 12,060 13.1562 16,445

3 7 1,250 2 0.9778 1,222 1.2125 1,516

3 7 1,250 3 2.2818 2,852 2.8635 3,579

3 7 1,250 1 3.8529 4,816 4.7442 5,930

3 7 1,250 1 8.4518 10,565 10.3118 12,890

4 2 1,250 2 0.9778 1,222 1.2125 1,516

4 2 1,250 3 2.2818 2,852 2.8635 3,579

4 2 1,250 1 3.8529 4,816 4.7442 5,930

4 2 1,250 1 8.4518 10,565 10.3118 12,890

4 7 1,250 1 0.9778 1,222 1.2125 1,516

4 7 1,250 2 2.2818 2,852 2.8635 3,579

4 7 1,250 1 3.8529 4,816 4.7442 5,930

4 7 1,250 1 8.4518 10,565 10.3118 12,890

5 2 1,250 2 0.9778 1,222 1.2125 1,516

5 2 1,250 3 2.2818 2,852 2.8635 3,579

5 2 1,250 1 3.8529 4,816 4.7442 5,930

5 2 1,250 1 8.4518 10,565 10.3118 12,890
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

11

New Entrant Profile for Schedule A:

Revenue Procedure 2016-27, Section 3.02: Schedule A New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,665 9 2.5212 4,198 3.2641 5,435

2 2 1,665 1 0 3.4304 5,712 4.3273 7,205

2 7 1,665 6 2.5212 4,198 3.2641 5,435

2 7 1,665 7 3.4304 5,712 4.3273 7,205

3 2 1,665 1 9 2.5212 4,198 3.2641 5,435

3 2 1,665 2 1 3.4304 5,712 4.3273 7,205

3 7 1,665 3 2.5212 4,198 3.2641 5,435

3 7 1,665 4 3.4304 5,712 4.3273 7,205

4 2 1,665 3 2.5212 4,198 3.2641 5,435

4 2 1,665 3 3.4304 5,712 4.3273 7,205

4 7 1,665 3 2.5212 4,198 3.2641 5,435

4 7 1,665 3 3.4304 5,712 4.3273 7,205

5 2 1,665 4 2.5212 4,198 3.2641 5,435

5 2 1,665 4 3.4304 5,712 4.3273 7,205
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

12

New Entrant Profile for Schedule B (Not Including UPS Participants):

New Entrant Profile for Schedule B (UPS Participants Only):

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (Not Including UPS Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 2 0.5858 732 0.7009 876

2 2 1,250 4 2.2235 2,779 3.0555 3,819

2 2 1,250 3 3.7541 4,693 5.1287 6,411

2 2 1,250 9 8.4524 10,566 10.6814 13,352

2 7 1,250 2 0.5858 732 0.7009 876

2 7 1,250 3 2.2235 2,779 3.0555 3,819

2 7 1,250 2 3.7541 4,693 5.1287 6,411

2 7 1,250 6 8.4524 10,566 10.6814 13,352

3 2 1,250 5 0.5858 732 0.7009 876

3 2 1,250 8 2.2235 2,779 3.0555 3,819

3 2 1,250 6 3.7541 4,693 5.1287 6,411

3 2 1,250 1 4.8041 6,005 6.6833 8,354

3 2 1,250 1 8 8.4524 10,566 10.6814 13,352

3 2 1,250 1 10.7583 13,448 14.6831 18,354

3 7 1,250 1 0.5858 732 0.7009 876

3 7 1,250 1 2.2235 2,779 3.0555 3,819

3 7 1,250 1 3.7541 4,693 5.1287 6,411

3 7 1,250 3 8.4524 10,566 10.6814 13,352

4 2 1,250 1 0.5858 732 0.7009 876

4 2 1,250 1 2.2235 2,779 3.0555 3,819

4 2 1,250 1 3.7541 4,693 5.1287 6,411

4 2 1,250 3 8.4524 10,566 10.6814 13,352

4 7 1,250 1 0.5858 732 0.7009 876

4 7 1,250 1 2.2235 2,779 3.0555 3,819

4 7 1,250 1 3.7541 4,693 5.1287 6,411

4 7 1,250 3 8.4524 10,566 10.6814 13,352

5 2 1,250 1 0.5858 732 0.7009 876

5 2 1,250 2 2.2235 2,779 3.0555 3,819

5 2 1,250 1 3.7541 4,693 5.1287 6,411

5 2 1,250 4 8.4524 10,566 10.6814 13,352

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (UPS Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,035 1 9 8.4520 8,748 11.3270 11,723

2 7 1,035 1 3 8.4520 8,748 11.3270 11,723

3 2 1,035 3 9 8.4520 8,748 11.3270 11,723

3 7 1,035 7 8.4520 8,748 11.3270 11,723

4 2 1,035 6 8.4520 8,748 11.3270 11,723

4 7 1,035 6 8.4520 8,748 11.3270 11,723

5 2 1,035 8 8.4520 8,748 11.3270 11,723
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

13

New Entrant Profile for Schedule C:

New Entrant Profile for Schedule D:

Revenue Procedure 2016-27, Section 3.02: Schedule C New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,735 1 0 1.7189 2,982 2.3286 4,040

2 2 1,735 7 3.5953 6,238 4.7893 8,309

2 2 1,735 2 6.6416 11,523 9.4514 16,398

2 7 1,735 7 1.7189 2,982 2.3286 4,040

2 7 1,735 5 3.5953 6,238 4.7893 8,309

2 7 1,735 1 6.6416 11,523 9.4514 16,398

3 2 1,735 2 1 1.7189 2,982 2.3286 4,040

3 2 1,735 1 4 3.5953 6,238 4.7893 8,309

3 2 1,735 1 4.9375 8,567 6.8369 11,862

3 2 1,735 4 6.6416 11,523 9.4514 16,398

3 7 1,735 4 1.7189 2,982 2.3286 4,040

3 7 1,735 2 3.5953 6,238 4.7893 8,309

3 7 1,735 1 6.6416 11,523 9.4514 16,398

4 2 1,735 3 1.7189 2,982 2.3286 4,040

4 2 1,735 2 3.5953 6,238 4.7893 8,309

4 2 1,735 1 6.6416 11,523 9.4514 16,398

4 7 1,735 3 1.7189 2,982 2.3286 4,040

4 7 1,735 2 3.5953 6,238 4.7893 8,309

4 7 1,735 1 6.6416 11,523 9.4514 16,398

5 2 1,735 4 1.7189 2,982 2.3286 4,040

5 2 1,735 3 3.5953 6,238 4.7893 8,309

5 2 1,735 1 6.6416 11,523 9.4514 16,398

Revenue Procedure 2016-27, Section 3.02: Schedule D New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,650 4 1.6202 2,673 2.3035 3,801

2 2 1,650 1 5 3.1804 5,248 4.5196 7,457

2 7 1,650 2 1.6202 2,673 2.3035 3,801

2 7 1,650 1 1 3.1804 5,248 4.5196 7,457

3 2 1,650 7 1.6202 2,673 2.3035 3,801

3 2 1,650 3 2 3.1804 5,248 4.5196 7,457

3 7 1,650 1 1.6202 2,673 2.3035 3,801

3 7 1,650 6 3.1804 5,248 4.5196 7,457

4 2 1,650 1 1.6202 2,673 2.3035 3,801

4 2 1,650 5 3.1804 5,248 4.5196 7,457

4 7 1,650 1 1.6202 2,673 2.3035 3,801

4 7 1,650 5 3.1804 5,248 4.5196 7,457

5 2 1,650 1 1.6202 2,673 2.3035 3,801

5 2 1,650 7 3.1804 5,248 4.5196 7,457
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

14

New Entrant Profile for Schedule E (Not Including UPS or ABF Participants):

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (Not Including UPS or ABF Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,765 2 0.9356 1,651 1.2346 2,179

2 2 1,765 1 1 1.6024 2,828 2.3612 4,167

2 2 1,765 3 3.3145 5,850 4.9090 8,664

2 2 1,765 1 4.6104 8,137 6.7161 11,854

2 2 1,765 1 9.1719 16,188 13.5041 23,835

2 7 1,765 2 0.9356 1,651 1.2346 2,179

2 7 1,765 8 1.6024 2,828 2.3612 4,167

2 7 1,765 2 3.3145 5,850 4.9090 8,664

2 7 1,765 1 4.6104 8,137 6.7161 11,854

2 7 1,765 1 9.1719 16,188 13.5041 23,835

3 2 1,765 5 0.9356 1,651 1.2346 2,179

3 2 1,765 2 3 1.6024 2,828 2.3612 4,167

3 2 1,765 6 3.3145 5,850 4.9090 8,664

3 2 1,765 3 4.6104 8,137 6.7161 11,854

3 2 1,765 1 7.0318 12,411 8.8851 15,682

3 2 1,765 2 9.1719 16,188 13.5041 23,835

3 7 1,765 1 0.9356 1,651 1.2346 2,179

3 7 1,765 4 1.6024 2,828 2.3612 4,167

3 7 1,765 1 3.3145 5,850 4.9090 8,664

3 7 1,765 1 4.6104 8,137 6.7161 11,854

4 2 1,765 1 0.9356 1,651 1.2346 2,179

4 2 1,765 4 1.6024 2,828 2.3612 4,167

4 2 1,765 1 3.3145 5,850 4.9090 8,664

4 7 1,765 1 0.9356 1,651 1.2346 2,179

4 7 1,765 3 1.6024 2,828 2.3612 4,167

4 7 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 0.9356 1,651 1.2346 2,179

5 2 1,765 5 1.6024 2,828 2.3612 4,167

5 2 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 4.6104 8,137 6.7161 11,854
Appendix A: Revenue Procedure 2016-27 Section 3.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

15

New Entrant Profile for Schedule E (UPS and ABF Participants Only):

New Entrant Profile for Schedule G (YRC Participants Only):

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (UPS and ABF Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,955 1 9 9.6256 18,818 14.6148 28,572

2 7 1,955 1 3 9.6256 18,818 14.6148 28,572

3 2 1,955 4 0 9.6256 18,818 14.6148 28,572

3 7 1,955 7 9.6256 18,818 14.6148 28,572

4 2 1,955 7 9.6256 18,818 14.6148 28,572

4 7 1,955 6 9.6256 18,818 14.6148 28,572

5 2 1,955 8 9.6256 18,818 14.6148 28,572

Revenue Procedure 2016-27, Section 3.02: Schedule G New Entrant Profile (YRC Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,800 1 9 1.9987 3,598 2.2457 4,042

2 7 1,800 1 3 1.9987 3,598 2.2457 4,042

3 2 1,800 4 0 1.9987 3,598 2.2457 4,042

3 7 1,800 7 1.9987 3,598 2.2457 4,042

4 2 1,800 6 1.9987 3,598 2.2457 4,042

4 7 1,800 6 1.9987 3,598 2.2457 4,042

5 2 1,800 8 1.9987 3,598 2.2457 4,042
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

16

This appendix includes justification for the investment return assumption used in the actuarial 

projections contained in this report. Justification for the investment return assumption for both 

deterministic and stochastic projections is included. Unless otherwise noted, investment return 

assumptions are net of investment fees.

We note that the assumptions developed in this appendix are individually reasonable and, along with 

other assumptions used in the projection, represent our best estimate of future experience under the 

Plan for the purposes of this measurement, which is a cash flow projection relating to proposed benefit 

suspensions under MPRA. We note that some of the assumptions are related, and a change in one 

assumption may necessitate a change in other assumptions.

Summary

Deterministic Assumption 

A “select and ultimate” investment return assumption is used for purposes of the deterministic projections. 

The “select” period is 10 years. The assumption is shown in the table below.

In other words, net investment returns are assumed to be 6.75% in each of the next 10 years starting 

January 1, 2016 and 7.50% in each year thereafter. 

Stochastic Assumption

A select and ultimate investment return assumption is also used for purposes of the stochastic projections. 

As with the deterministic assumption, the select period is the 10 years starting January 1, 2016. The 

assumption is shown in the table below.

In other words, the stochastic projections assume that the average return in each of the first 10 years will be 

7.19%, with a standard deviation of 11.50%. The projections then assume that the average return in each 

year thereafter will be 8.19%, with a standard deviation of 11.55%. 

The basis for the above assumptions is detailed in the remainder of this Appendix B. The assumptions were 

developed incorporating:

 Final Treasury Regulations implementing MPRA’s provisions regarding benefit suspensions,

 Horizon Actuarial’s 2015 and 2016 Surveys of Capital Market Assumptions,

 The applicable Actuarial Standards of Practice, and

 Our expectations regarding anticipated experience under the Plan.

We believe the above assumptions are individually reasonable, and reasonable in combination with other 

assumptions used in the projections, taking into account the experience of the Plan and reasonable 

Determinstic Assumption Select Ultimate

Expected Geometric Return 6.75% 7.50%

Stochastic Assumption Select Ultimate

Expected Arithmetic Return 7.19% 8.19%

Standard Deviation 11.50% 11.55%
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

17

expectations. We also believe the above assumptions are appropriate for the purposes of the measurement 

and that factors specific to the measurement have been taken into account.

Introduction and Background

Actuarial Standard of Practice No. 27:

Actuarial Standard of Practice No. 27 (“ASOP 27”), Selection of Economic Assumptions for Measuring 

Pension Obligations, provides guidance for the selection of economic assumptions, including the investment 

return assumption, for measuring obligations under defined benefit pension plans. This includes, but is not 

limited to, funding valuations, liability measurements or other actuarial present value calculations, and cash 

flow projections. According to ASOP 27, the actuary should consider relevant data, adverse deviation and 

materiality when selecting an investment return assumption.

According to ASOP 27, a reasonable assumption has the following characteristics:

 Is appropriate for the purpose of the measurement

 Reflects the actuary’s professional judgment

 Takes into account historical and current economic data that is relevant as of the measurement 

date

 Reflects the actuary’s estimate of future experience

 Has no significant bias, except when provisions for adverse deviation are included

Section 3.8 of ASOP 27 provides guidance on selecting an investment return assumption. In developing a 

reasonable assumption, the following factors are to be considered:

 Data – the actuary should review appropriate investment data

 Measurement-Specific Considerations 

o Investment Policy – The actuary should consider the current asset allocation and any 

expected changes to the asset allocation in the future

o Effect of Reinvestment

o Investment Volatility – Plans investing in asset classes characterized by high variability of 

returns may be required to liquidate those assets at depressed values to meet benefit 

obligations

o Cash Flow Timing – the timing of expected contributions and benefit payments may 

affect the plan’s liquidity needs and investment opportunities

 Multiple Investment Return Rates – The actuary may assume multiple investment return rates 

instead of a single rate, such as a select and ultimate return assumption.

Other Considerations:

Based on the final regulations implementing MPRA’s provisions regarding benefit suspensions, factors 

specific to the measurements must be taken into account in selecting the assumptions and methods.

The proposed suspension amounts detailed in this application result in a projection where the Plan’s asset 

levels decline during the earlier years of the projection. The assumption for the investment return was 
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

18

developed in a manner that takes into account the anticipated pattern and magnitude of changes in the 

level of the Plan’s assets during the projection period. As a result, a select and ultimate assumption was 

developed instead of an assumption that is based solely on long-term expectations.

Development of the Investment Return Assumption for Deterministic Projections:

As part of this process, we requested future investment return expectations from the Meketa Investment 

Group (“Meketa”), the Plan’s investment consultant. Meketa provided the following information:

1-Year Time Horizon

Arithmetic Mean 9.92%

20-Year Time Horizon

Geometric Mean 8.84%

Standard Deviation 15.90%

For reference, below is the asset allocation as of December 31, 2015 and the target asset allocation of the 

Plan. The allocation range from the investment policy is also shown for each asset class.

Horizon Actuarial’s Survey of Capital Market Assumptions:

Each year, Horizon Actuarial publishes a survey of capital market assumptions. The 2015 Survey of Capital 

Market Assumptions (“the 2015 Survey”) included capital market expectations from 29 different investment 

consultants. The 2016 Survey of Capital Market Assumptions (“the 2016 Survey”) included capital market 

expectations from 35 different investment consultants. Some of these consultants provided both short term 

Asset Allocations Current Target Policy Range

US Equity - Large Cap 7.5% 12.0%

US Equity - Small/Mid Cap 5.6% 6.0%

Non-US Equity - Developed 8.6% 8.0% 3% - 13%

Non-US Equity - Emerging 15.6% 16.0% 11% - 21%

US Corporate Bonds - Core 7.0% 7.0% 2% - 12%

US Corporate Bonds - High Yield 3.7% 2.0% 0% - 7%

Non-US Debt - Emerging 7.4% 8.0% 3% - 13%

US Treasuries (Cash Equivalents) 0.4% 2.0% 0% - 7%

TIPS (Inflation-Protected) 3.6% 5.0% 0% - 10%

Real Estate 5.5% 7.0% 2% - 12%

Hedge Funds 0.1% - 0% - 5%

Commodities 7.3% 7.0% 2% - 12%

Infrastructure 8.1% 5.0% 0% - 10%

Private Equity 19.6% 15.0% 5% - 25%

TOTAL PORTFOLIO 100.0% 100.0%

13% - 23% }
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

19

(10 years) and long term (20 years) assumptions. Generally, investment returns are expected to be lower in 

the short term when compared to the long term.

Based on the results of the 2015 Survey and 2016 Survey, Horizon Actuarial develops a model that will 

estimate the expected returns of a fund, given an asset allocation. We note that there are limitations to the 

model. For more information regarding the limitations of the model, please see the 2015 Survey and the 

2016 Survey at horizonactuarial.com.

When the investment return assumption was initially developed for purposes of this measurement, which is 

a cash flow projection relating to proposed benefit suspensions under MPRA, the analysis was done using 

the results of the 2015 Survey. We have updated the analysis based on the results of the recently published 

2016 Survey. The analysis developed under the 2015 Survey is consistent with the analysis developed under 

the 2016 Survey, with some minor differences. As a result, this appendix includes analysis based on both 

the 2015 Survey and the 2016 Survey.

Using the 2016 Survey and the Fund’s target asset allocation, the following survey averages were taken from 

the 2016 Survey model:

10-Year Time Horizon 20-Year Time Horizon

Arithmetic Mean 8.23% 9.19%

Geometric Mean 7.37% 8.35%

Standard Deviation 13.60% 13.52%

Using the 2015 Survey and the Fund’s target asset allocation, the following survey averages were taken from 

the 2015 Survey model:

10-Year Time Horizon 20-Year Time Horizon

Arithmetic Mean 8.30% 9.02%

Geometric Mean 7.45% 8.18%

Standard Deviation 13.60% 13.52%

The output from the 2015 Survey and the 2016 Survey shows expected returns and risk that are lower than 

the measures provided by Meketa. These differences are due to the limitations of our model mentioned 

above and are explained based on the following additional information provided by Meketa:

 Commodities/Natural Resources: The Plan has 7.3% of its assets invested in natural resources. 

The 2016 Survey does not have natural resources as an asset class. Natural resources are 

grouped in the commodities asset class. The 2016 Survey groups all commodities (agricultural, 

energy, metals, etc.) in the same category and assumes an average expected return of 4.84% 

per year. Specifically, the Plan’s investments in commodities consist of investments in natural 

resources. Meketa assumes an average annual return of 8.40% per year for natural resources. 

This accounts for a difference in expected returns of approximately 25-30 basis points when 

comparing the 2016 Survey with the assumptions provided by Meketa.

 Real Estate: The Plan has 5.5% of its assets invested in real estate. The 2016 Survey groups all 

real estate investments in the same category and assumes an average expected return of 6.75% 
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

20

per year. Specifically, the Plan’s investments in real estate consist of REITs, core real estate and 

value added real estate. Meketa assumes an average annual return of 7.70% per year for the 

specific real estate investments. This accounts for a difference in expected returns of 

approximately 5 basis points when comparing the 2016 Survey with the assumptions provided 

by Meketa.

 Infrastructure: The Plan has 8.1% of its assets invested in infrastructure. The 2016 Survey 

groups all infrastructure investments in the same category and assumes an average expected 

return of 7.12% per year. Specifically, half of the Plan’s investments in infrastructure are in noncore infrastructure investments. Meketa assumes an average annual return of 9.10% per year 

for non-core infrastructure. This accounts for a difference in expected returns of approximately 

8 basis points when comparing the 2016 Survey with the assumptions provided by Meketa.

Based on the information shown above, including the asset allocation, results provided by Meketa, and 

results from the 2015 Survey and the 2016 Survey, an 8.50% investment return is a reasonable assumption 

for purposes of discounting plan liabilities under a minimum funding valuation. This is part of the basis for 

the 8.50% investment return assumption that was used in prior years’ minimum funding valuations, the 

discounting of liabilities, and in the actuarial projection required under Section 3.01 of Revenue Procedure 

2016-27 (certification of critical and declining status). An 8.50% investment return assumption, however, 

may not be appropriate for purposes of a cash flow projection reflecting proposed benefit suspensions 

under MPRA.

Long Term Expectations:

In developing a reasonable long term investment return assumption, we considered various factors 

described earlier in this appendix.

We considered the timing of future expected contributions and benefit payments, which – when taken into 

account – results in the plan having a significant negative cash flow and therefore declining asset levels. This 

Plan is currently projected, even after the proposed benefit suspensions, to have a negative cash flow with 

benefit payments and expenses larger than contributions. This also results in a declining asset value for 

most of the projection period. The assets are projected to increase towards the end of the projection 

period, as the projected 3% annual increases in contribution rates and the decline in benefit payments result 

in a positive cash flow (or a cash flow that is negative, but where the difference is made up by projected 

investment returns).

Under ASOP 27, the actuary should address factors specific to the measurement when selecting the 

investment return assumption. With respect to a plan’s investment policy, the actuary should consider the 

current asset allocation and any expected changes to the asset allocation in the future during the 

measurement period. With respect to a plan’s cash flows, the actuary should consider that the timing of 

expected contributions and benefit payments may affect the plan’s liquidity needs and investment 

opportunities.

Taking into account the Plan’s negative cash flow and declining asset values, the Plan’s asset allocation may 

need to shift to more liquid assets that provide less expected return. This is consistent with the 

Measurement Specific Considerations from ASOP 27 described above. We used the 2016 Survey model to 

illustrate the impact of moving to a more liquid portfolio. 
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

21

The following table shows three different Plan asset allocations. The “Current” allocation is the actual 

allocation for the Plan as of December 31, 2015. The “Target” allocation is the target allocation according to 

the Plan’s investment policy. The “Alternative” allocation (as described in more detail below) represents a 

hypothetical allocation that provides more liquidity with reduced volatility.

Based on discussions with Meketa, if the proposed suspension of benefits is approved, it may be possible for 

the Plan’s assets to remain close to the Target allocations under the current investment policy. Given the 

Plan’s negative cash flows and declining asset values, however, it may be necessary for the Plan’s Trustees 

to adjust the asset allocation in the future to increase liquidity and decrease volatility. Unfavorable 

experience in the near term may accelerate the need for such an adjustment.

The Alternative allocation shown above represents a hypothetical allocation that increases liquidity and 

reduces volatility, while remaining within the permissible ranges under the Plan’s investment policy. The 

allocation increases certain asset classes with higher liquidity (such as fixed income and domestic equity) 

and which reduce overall portfolio volatility (such as TIPs and hedge funds). Similarly, the allocation reduces 

certain asset classes that are less liquid or more volatile (such as emerging markets equity, infrastructure, 

and private equity). Note that as described earlier in this appendix, the allocation to commodities is actually 

an allocation to natural resources.

The following averages from the 2016 Survey were taken from the above model reflecting the Alternative 

allocation (averages from the target allocation are also shown):

Asset Allocations Current Target Alternative

US Equity - Large Cap 7.5% 12.0% 18.0%

US Equity - Small/Mid Cap 5.6% 6.0% 5.0%

Non-US Equity - Developed 8.6% 8.0% 10.0%

Non-US Equity - Emerging 15.6% 16.0% 12.0%

US Corporate Bonds - Core 7.0% 7.0% 12.0%

US Corporate Bonds - High Yield 3.7% 2.0% 7.0%

Non-US Debt - Emerging 7.4% 8.0% 9.0%

US Treasuries (Cash Equivalents) 0.4% 2.0% 6.0%

TIPS (Inflation-Protected) 3.6% 5.0% 6.0%

Real Estate 5.5% 7.0% 4.0%

Hedge Funds 0.1% - 4.0%

Commodities 7.3% 7.0% 2.0%

Infrastructure 8.1% 5.0% -

Private Equity 19.6% 15.0% 5.0%

TOTAL PORTFOLIO 100.0% 100.0% 100.0%
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

22

As shown above, annualized investment returns for the Target allocation are expected to be about 7.4% per 

year (geometric basis) over the next 10 years, and about 8.4% over the next 20 years. Expected returns for 

the Current allocation (not shown) are slightly higher. 

Expected returns for the hypothetical Alternative allocation, however, are significantly lower than for the 

Target Allocation. Specifically, expected annualized returns for the Alternative allocation are about 6.6% 

over the next 10 years and 7.6% over the next 20 years. Note the volatility of the expected returns for the 

Alternative allocation is also considerably lower than under the Target allocation.

Short Term versus Long Term Expectations:

The 2015 Survey and the 2016 Survey include expectations of returns for both the short term (10 years) and 

long term (20 years). Generally, survey respondents expect investment returns to be lower in the short 

term when compared to the long term. Please see the 2015 Survey and 2016 Survey for additional 

information.

The results from the 2016 Survey model, given this Plan’s target allocation, include expected short term 

investment returns (10 years) approximately 1.00% lower than the long term investment returns. The 

results from the 2015 Survey model, given the same target allocation, include short term investment returns 

(10 years) approximately 0.75% lower than the long term investment returns.

The change from a 0.75% difference in the 2015 Survey to the 1.00% difference in the 2016 Survey is due to 

some survey contributors making adjustments to their longer term assumptions and to the addition of a 

new survey respondent that had the most optimistic assumptions. The increase in the long-term 

expectations resulted in a larger spread between short term and long term expectations. We are cautious 

not to over-react to the upward movement for long-term expectations seen in the 2016 Survey, because the 

spread between short term and long term expectations has been approximately 0.75% in the three surveys 

prior to the 2016 Survey.

Based on the above, we believe the investment return assumption should have a short term expectation

that is less than the long term expectation. This is appropriate, because it considers relevant economic data 

in the development of the investment return assumption.

10-Year Horizon Target Alternative

Expected Arithmetic Return 8.23% 7.19%

Expected Geometric Return 7.37% 6.57%

Standard Deviation 13.60% 11.50%

20-Year Horizon Target Alternative

Expected Arithmetic Return 9.19% 8.19%

Expected Geometric Return 8.35% 7.57%

Standard Deviation 13.52% 11.55%
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

23

Investment Return Assumption for Deterministic Projections

The “select and ultimate” investment return assumption used for purposes of the deterministic projections 

is described below. The “select” period is 10 years. 

In other words, net investment returns are assumed to be 6.75% in each of the next 10 years starting 

January 1, 2016 and 7.50% in each year thereafter. This assumption was developed in consideration of the 

expected geometric returns from the 2016 Survey and the 2015 Survey. Geometric returns are annualized 

over a multi-year period and are therefore more appropriate for this purpose than arithmetic returns (which 

are one-year averages).

As described above, according to the average assumptions of the 2016 Survey, expected annualized returns 

for the Target allocation are about 7.4% per year for the next 10 years and about 8.4% per year over the 

next 20 years. While these returns take into account generally lower expectations over the short term, they 

require adjustments for certain factors specific to the Plan. 

Specifically:

 Negative cash flows and declining asset values. The Plan is projected to have a negative cash flow 

after incorporating the proposed benefits suspensions and is projected to have a declining asset 

value during many years in the projection period. As a result, the funded percentage is projected to 

decline for many years before it begins to improve. 

 The materiality of investment returns in the early years of the projection. If a pension plan has a 

negative cash flow, the order of investment returns is important. For example, an investment loss 

followed by an investment gain would have a worse result for the plan than if the gain had preceded 

the loss. Given the Plan’s severely negative cash flow, there is greater materiality of asset returns in 

the early years of the projection. The cash flow projections are sensitive to variations in the asset 

returns in the near term, because the same percentage gain or loss has a greater impact if it occurs 

earlier, when asset levels are higher, than in later years, when asset levels are lower. Because of 

these sensitivities, an adjustment for adverse deviations may be appropriate.

 Possible changes in asset allocation. As described above, the Plan’s asset allocation may need to be 

adjusted to increase liquidity and decrease volatility. Such an adjustment becomes more likely 

following unfavorable experience. Such an adjustment may be more likely as time goes on, both 

due to the longer period over which an unfavorable event may occur and due to the fact that the 

funded percentage is projected to decline before stabilizing. For this reason, more weight was given 

to the expected returns for the Alternative allocation in setting the ultimate rate.

Given the factors above, the expected geometric returns for the Target allocation, based on the average 

assumptions from the 2016 Survey and the 2015 Survey, were adjusted downward, closer to the Alternative 

allocation, and including a small margin for adverse deviation. These downward adjustments were made to 

reflect the possibility that the asset allocation is adjusted to increase liquidity and reduce volatility and to 

reflect the factors described above. These downward adjustments are especially important for a 

Determinstic Assumption Select Ultimate

Expected Geometric Return 6.75% 7.50%
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

24

deterministic projection, which – unlike a stochastic projection – does not consider the possibility of returns 

that vary year by year, or that future experience may be less favorable than the baseline assumption.

We acknowledge that other assumptions may be reasonable, but we believe this assumption is reasonable 

for the purposes of this measurement, which is a cash flow projection including proposed permanent 

benefit suspensions under MPRA. 

Although the assumption does include some margin for adverse deviation, we do not believe that the 

assumption is biased in that it is overly conservative. Based on the 2015 Survey model and the 2016 Survey 

model, the assumption above falls within the range of conservative expected returns and optimistic 

expected returns. Because this is a cash flow projection including proposed benefit suspensions under 

MPRA and not a minimum funding valuation, we believe it is appropriate that the investment return 

assumption include some margin for adverse deviation and be somewhere between the conservative 

assumptions and the average assumptions shown in the 2015 Survey model and the 2016 Survey model.

We understand, however, that including too much margin for adverse deviation may result in benefit 

suspensions that may be deemed to be too large. Because of this, we only considered a moderate margin 

for adverse deviation, knowing that too large a margin may lead to unnecessary benefit suspensions. Based 

on our projection modeling, we estimate that if we were to increase the investment return assumption by 

0.25% for each year in the projection, the proposed benefit suspension amount for inactive participants 

would only change by 1% of the benefit amount before suspension. While we acknowledge that every 

penny of a participant’s benefit is important, we believe this analysis shows that we have not incorporated 

too much adverse deviation such that the assumption is unreasonable for purposes of this measurement. 

We note that the 1% estimated change in the inactive suspension percentage as a result of a 0.25% increase 

in the investment return assumption is less than the one of the threshold amounts used to determine if 

benefit suspensions materially exceed the level necessary to avoid insolvency.

Development of the Investment Return Assumption for Stochastic Projections:

As part of this process, the following information was provided by Meketa:

20-Year Time Horizon

Arithmetic Mean 9.92%

Geometric Mean 8.84%

Standard Deviation 15.90%

Because we adjusted the investment return assumption for the deterministic projections as described 

earlier in this appendix, we believe it is appropriate to use assumptions for stochastic modeling that are 

consistent with the assumptions used for deterministic modeling. We do not necessarily think the 

assumptions provided by Meketa and shown above are unreasonable, rather that the assumptions should 

consider the purposes of this measurement, which is a cash flow projection including proposed benefit 

suspensions under MPRA. Given the purpose of the measurement, we believe it is appropriate to consider 

the expectations of multiple investment consultants, such as those consultants that provided input for the 

2015 Survey and the 2016 Survey, instead of just the Plan’s investment consultant.

A select and ultimate investment return assumption is also used for purposes of the stochastic projections. 

As with the deterministic assumption, the select period is 10 years. Based on the Alternative allocation
Appendix B: Revenue Procedure 2016-27 Section 3.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 3.02 of Revenue Procedure 2016-27

25

described earlier in the appendix, the following select and ultimate assumptions were developed from the 

output of the 2016 Survey model:

In other words, the stochastic projections assume that the average return in each of the first 10 years 

year will be 7.19%, with a standard deviation of 11.50%. The projections then assume that the average 

return in each year thereafter will be 8.19%, with a standard deviation of 11.55%. 

Because the stochastic projections use returns that vary randomly in each projection year, the 

assumption was developed based on the arithmetic expected returns from the 2016 Survey. Returns are 

assumed to be normally-distributed and independent from one year to the next.

Stochastic Assumption Select Ultimate

Expected Arithmetic Return 7.19% 8.19%

Standard Deviation 11.50% 11.55%
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 5
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information to Supplement Plan 

Sponsor’s Response Under Section 3.03 

of Revenue Procedure 2016-27 for 

Benefit Suspensions Effective 

July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

This report provides information to supplement the Plan Sponsor’s response to Section 3.03 of Revenue 

Procedure 2016-27: Application Procedures for Approval of Benefit Suspensions for Certain Multiemployer 

Defined Benefit Pension Plans under § 432(e)(9). This information is applicable to the New York State 

Teamsters Conference Pension and Retirement Fund (the “Plan”) assuming an effective date for benefit 

suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this supplemental report, we have relied upon information and data provided to us by the 

Board of Trustees of the Plan, the Plan administrator, and other persons or organizations designated by the 

Board of Trustees. We did not perform an audit of the financial and participant census data provided to us, 

but we have reviewed the data for reasonableness for the purpose of the measurement. We have relied on 

all of the information, including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information necessary to supplement the Plan Sponsor’s 

response to Section 3.03 of Revenue Procedure 2016-27. There may be additional information required in 

the application that will be compiled by the Plan administrator and/or other persons or organizations 

designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

Summary 1

Plan-year-by-plan-year projection of the available resources 2

Projection of benefit payments separated by status 3

Assumptions 4
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

1

Plan sponsor’s determination of projected insolvency

Under Section 3.03 of Revenue Procedure 2016-27, the plan sponsor must make a determination under 

Section 432(e)(9)(C)(ii) of the Code that the plan would not be projected to avoid insolvency if no 

suspension of benefits were applied under the Plan, even though all reasonable measures to avoid 

insolvency have been taken. The determination must include the documentation set forth in Section 5 

of Revenue Procedure 2016-27.

On the following pages, we have included:

 A plan-year-by-plan-year projection of the available resources as defined in Section 418E(b)(3) 

of the Code and the benefits under the plan, demonstrating the Plan would not be projected 

to avoid insolvency if no suspension of benefits were applied under the Plan. 

 A plan-year-by-plan-year projection of the benefit payments, separated by projected 

payments made to current retirees and beneficiaries, terminated vested participants who are 

not currently receiving benefits, currently active participants, and future new entrants.

 A description of each of the assumptions used in the projections, including the new entrant 

profile, the total contribution base units and average contribution rates.

Note that this projection, by itself, does not satisfy all the requirements of Section 3.03 of Revenue 

Procedure 2016-27. There is additional commentary required by the Plan Sponsor, which is included in 

the application.
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

2

Plan-year-by-plan-year projection of the available resources:

Note: The administrative expenses shown above include any regular Plan expenses and PBGC loans. Currently, the Plan does not have any 

PBGC loans.

Revenue Procedure 2016-27, Section 3.03: The Plan is Projected to Become Insolvent Without the Proposed Benefit Suspensions

Assumed Investment Return 6.75% for 10 years, 7.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension N/A Active Participants N/A

Expiration of Proposed Benefit Suspension N/A Non-active Participants N/A

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 86,524,274 1,157,047,661 3,311,681,836 37.62% 1,445,297,878 5.014

1 12/31/2017 1,157,047,661 121,451,426 9,586,913 (290,051,436) (9,853,710) 72,401,462 1,060,582,316 3,306,369,346 34.99% 1,350,633,752 4.657

2 12/31/2018 1,060,582,316 125,299,440 9,570,693 (292,563,204) (7,136,955) 66,026,293 961,778,583 3,298,896,703 32.15% 1,254,341,787 4.287

3 12/31/2019 961,778,583 129,104,157 9,497,851 (295,907,439) (7,235,993) 59,366,781 856,603,941 3,288,153,125 29.25% 1,152,511,380 3.895

4 12/31/2020 856,603,941 132,915,501 9,497,851 (299,557,620) (6,815,865) 52,287,112 744,930,920 3,272,988,015 26.17% 1,044,488,539 3.487

5 12/31/2021 744,930,920 136,794,009 9,497,851 (303,540,865) (6,918,030) 44,742,200 625,506,084 3,252,707,252 22.90% 929,046,949 3.061

6 12/31/2022 625,506,084 140,066,105 9,497,851 (306,963,439) (7,022,280) 36,672,426 497,756,747 3,226,529,499 19.39% 804,720,186 2.622

7 12/31/2023 497,756,747 143,397,886 9,497,851 (309,892,326) (7,127,573) 28,059,390 361,691,975 3,194,545,422 15.58% 671,584,301 2.167

8 12/31/2024 361,691,975 146,856,501 9,497,851 (312,097,392) (7,234,950) 18,913,701 217,627,686 3,156,784,050 11.46% 529,725,078 1.697

9 12/31/2025 217,627,686 150,470,329 9,497,851 (313,591,233) (7,343,370) 9,257,252 65,918,514 3,113,519,307 6.99% 379,509,747 1.210

1 0 12/31/2026 65,918,514 154,187,423 9,497,851 (313,909,406) (7,453,875) (969,037) INSOLVENT 3,065,035,902 2.15% 221,180,876 0.705

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

3

Projection of benefit payments, separately identifying benefit payments with respect to current retirees 

and beneficiaries, terminated vested participants who are not currently receiving benefits, currently 

active participants, and future new entrants:

Revenue Procedure 2016-27, Section 3.03: Projected Benefit Payments Separated by Status

Projected Benefit Payments by Status

Plan Year Total Retirees Terminated Future New

Ending Benefit Payments & Beneficiaries Vested Active Entrants

CY 12/31/2016 288,250,217 277,386,773 2,017,766 8,845,678 -

1 12/31/2017 290,051,436 271,307,379 3,866,864 14,877,193 -

2 12/31/2018 292,563,204 264,985,624 5,680,072 21,897,361 -

3 12/31/2019 295,907,439 258,457,044 7,617,756 29,831,411 -

4 12/31/2020 299,557,620 251,728,961 9,985,922 37,838,015 -

5 12/31/2021 303,540,865 244,784,418 12,314,286 46,429,978 -

6 12/31/2022 306,963,439 237,619,987 14,562,123 54,756,142 -

7 12/31/2023 309,892,326 230,218,930 17,295,965 62,332,316 -

8 12/31/2024 312,097,392 222,545,764 20,134,638 69,343,739 -

9 12/31/2025 313,591,233 214,620,498 22,776,936 76,082,844 -

1 0 12/31/2026 313,909,406 206,515,378 25,288,063 81,946,622 -

"CY" = current plan year
Revenue Procedure 2016-27 Section 3.03: 

Demonstration that the Plan is Eligible for Suspension

New York State Teamsters Conference Pension and Retirement Fund

Information to Supplement Section 3.03 of Revenue Procedure 2016-27

4

Assumptions:

The assumptions used in the actuarial projection above are the same as those used in the actuarial 

projection required under Section 3.02 of Revenue Procedure 2016-27. Please refer to the actuarial 

projection under Section 3.02 of Revenue Procedure 2016-27 for more information regarding the 

assumptions.
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 6
Application Section 4.01 

Demonstration that Limitations on Individual Suspensions are Satisfied 

4.01(1) Guarantee-Based Limitation 

Non-Active Participants 

Full Guarantee-Based Limitation - Example 1 

Patiial Guarantee-Based Limitation- Example 2 

Full Guarantee-Based Limitation - Example 3 

Partial Guarantee-Based Limitation- Example 4 

4.01(2) Disability-Based Limitation 

Non-Active Participants 

Disability - Example 5 

NIA 

4.01(3) Age-Based Limitation 

Non-Active Participants 

Age 80+ - Example 6* 

Age 75-79- Example 7 

NIA 

*A worksheet behind the sample individualized benefit statement for this Example has not been included, 

since this group of patiicipants is automatically protected from all suspensions by age. 

DBl/88826505.1 
Example 1

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

Your monthly benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It 

is not a final benefit calculation. This was done assuming that the proposed benefit 

reduction starts on July 1, 2017. If the benefit reduction starts later, the effect of the 

proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 24.40 years of credited service under the Plan. 

·You will be 71 years and 1 month(s) old as of July 31, 2017. 

• The portion of your benefit that is based on disability is so.oo. 

PBGC Guaranteed Benefits 

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

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be S370.64 . 
Member Name: 

Member SSN: 

Credited Service Years: 24.40 

Notes: NO CUT - I'BGCS 

Proposed Suspension %: 31.0% 

Total benefit: S404.58 

Proposed Suspension Amount: $125.42 

Maximum Allowable 

Suspension Amount: s.oo 

Age year: 71 

Age month(s): 1 

Prorating factor (ages 75-79): 1.0000 

Final proposed reduction: $.00 

Member Final Benefit S404.58 

110% PBGC Guarantee 

Rate !)]6.53 

~GC Rate- Firs_~_:.~ II Sll.\10 -- 75% of Next 33 S4.19 

PBGC Guarantee S370.64 

Guaranteed Limitation (110% 

PBGC rate) $404.58 
Example 2

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

Your current monthly benefit is S623.71 . Under the proposed reduction your monthly benefit will be 

reduced to S574.li3 beginning on July 1, 2017. 

The proposed reduction is permanent 

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

final benefit calculation. This was done assuming that the proposed benefit reduction starts on July 

1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

This estimate is based on the following information from Plan records: 

• You have 19.90 years of credited service under the Plan.* 

·You will be 6X years and 2 month(s) old as of July 31, 2017. * * 

• The portion of your benefit that is based on disability is so.oo. 

*If you are a Beneficiary or an Alternate Payee under a Qualified Domestic Relations Order, 

the credited service reflects the Participant's credited service. 

**If you are an Alternate Payee under a Shared Payment Qualified Domestic Relations 

Order, the age reflects the Participant's age as of July 31, 2017. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be $522.57. 
Member Name: 

MemberSSN: 

Credited Service Years: 19.90 

Notes: Notice !-Pay Status 

Proposed Suspension %: 31.0% 

Total benefit: $623.71 

Proposed Suspension Amount: $193.35 

Maximum Allowable 

Suspension Amount: S4!U~8 

Age year: 68 

Age rnonth(s): 2 

Prorating factor {ages 75-79): 1.0000 

Final proposed reduction: $48.88 

Member Final Benefit $574.83 

110% PBGC Guarantee 

Rate $31.34 

PBGC Rate - First $11 $11.00 

75% of Next 33 $15.26 

PBGC Guarantee $522.57 

Guaranteed Limitation (llO(Yo 

PBGC rate) $574.83 
Example 3

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

Your monthly benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It 

is not a final benefit calculation. This was done assuming that the proposed benefit 

reduction starts on July 1, 2017. If the benefit reduction starts later, the effect of the 

proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 6.00 years of credited service under the Plan. 

• You will be 55 years and month(s) old as of July 31,2017. 

• The portion of your benefit that is based on disability is so.oo. 

PBGC Guaranteed Benefits 

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

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be S85.86. 
Member Name: 

MemberSSN: 

Credited Service Years: - 6.00 

Notes: NO CUT- PUGCS 

Proposed Suspension %: 20.0% 

Total benefit: $92.44 

Proposed Suspension Amount: $Ul.49 

Maximum Allowable 

Suspension Amount: $.00 

Age year: 55 

Age month(s): 

Prorating factor (ages 75-79): 1.0000 

Final proposed reduction: s.oo 

Member Final Benefit S92.44 

110% PBGC Guarantee 

Rate S15.41 

PBGC Rate - First $11 $11.00 

75% ofNcxt 33 S3.31 

PBGC Guarantee $85.86 

Guaranteed Limitation (110% 

PBGC rate) $92.44 
Example 4

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

If you start receiving your benefit on 07/0112033 in the form of a Life Annuity, your monthly 

benefit without the proposed reduction would be Sl,208.36. 

Under the proposed reduction your monthly benefit in the same form would be reduced 

to S983. 13 7* 

The proposed reduction is permanent 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It 

is not a final benefit calculation. This was done assuming that the proposed benefit 

reduction starts on July 1, 2017. If the benefit reduction starts later, the effect of the 

proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 25.00 years of credited service under the Plan."* 

,• You will be 49 years and 1 month(s) old as of July 31, 2017.*** 

• The portion of your benefit that is based on disability is so.oo. 

"If you are a Participant, the monthly benefit estimates reflects an offset for any 

amounts due an Alternate Payee under a Qualified Domestic Relations Order on file 

with the Plan. 

**If you are a Beneficiary or an Alternate Payee under a Qualified Domestic 

Relations Order, the Credited Service reflects the Participant's Credited Service. 

***If you are an Alternate Payee entitled to benefits under a Shared Payment 

Qualified Domestic Relations Order, the age reflects the Participant's age as of July 

31,2017. 

PBGC Guaranteed Benefits 

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

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be S893. 75 . 

1 These numbers are just estimates. The actual amount you receive will depend on things like how long 

you work and when you begin receiving payments. For more information, see your SPD. 

'---------------------------------·------------
Member Name: 

Member SSN: 

Credited Service Years: 25.00 

Notes: Notice 2-Not in Pay 

Proposed Suspension %: 20.0% 

Total benefit: S\,208.36 

Proposed Suspension Amount: $241.67 

Maximum Allowable 

Suspension Amount: $225.23 

Age year: 49 

Age month(s): 1 

Prorating factor (ages 75-79): 1.0000 

Final proposed reduction: $225.23 

Member Final Benefit S98:l.13 

110% PBGC Guarantee 

Rate S48.33 

PBGC Rate - First $11 $11.00 

75% of Next 33 $24.75 

PBGC Guarantee S893.75 

Guaranteed Limitation (110% 

PBGC rate) $983.13 
Example 5

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

Your monthly benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It 

is not a final benefit calculation. This was done assuming that the proposed benefit 

reduction starts on July 1, 2017. If the benefit reduction starts later, the effect of the 

proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

• You have 20.00 years of credited service under the Plan. 

• You will be 51 years and 8 month(s) old as of July 31,2017. 

• The portion of your benefit that is based on disability i~2,157.67. 

PBGC Guaranteed Benefits 

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

larger than the amount guaranteed by PBGC. The amount of your monthly benefit 

guaranteed by PBGC is estimated to be S715.00. 
Member Name: 

McmbcrSSN: 

Credited Service Years: 20.00 

Notes: NO CUT- DISABILITY 

Proposed Suspension%: 31.0% 

Total benefit: $2,157.67 

Proposed Suspension Amount: s.oo 

Maximum Allowable 

Suspension Amount: $.00 

Age year: 51 

Age month(s): 8 

Prorating factor (ages 75-79): 1.0000 

Final proposed reduction: s.oo 

Member Final Benefit S2 157.67 

110% PBGC Guarantee 

Rate SI07.l.{ll 

PBGC Rate - First $1 I Sll.OO 

75% of Next 33 $24.75 

PBGC Guarantee S715.00 

Guaranteed Limitation (110% 

PBGC rate) $786.50 
....... Example 6 . . .. . . -

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

Your monthly benefit would not change under the proposed reduction. 

This is an estimate of the effect of the proposed reduction on your benefit under the Plan. It 

is not a final benefit calculation. This was done assuming that the proposed benefit 

reduction starts on July 1, 2017. If the benefit reduction starts later, the effect of the 

proposed reduction on your benefit might be different. 

This estimate is based on the following information from Plan records: 

• You will be 83 years and 6 month(s) old as of July 31, 2017. 

• The portion of your benefit that is based on disability is so.oo. 

PBGC Guaranteed Benefits 

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

larger than the amount guaranteed by PBGC. 
Example 7

HOW YOUR MONTHLY PAYMENTS WILL BE AFFECTED 

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

Your current monthly benefit is 51,733.50. Under the proposed reduction your monthly benefit will be 

reduced to$1,724.53 beginning on July 1, 2017. 

The proposed reduction is permanent. 

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

final benefit calculation. This was done assuming that the proposed benefit reduction starts on July 

1, 2017. If the benefit reduction starts later, the effect of the proposed reduction on your benefit 

might be different. 

This estimate is based on the following information from Plan records: 

• You have 26.70 years of credited service under the Plan.* 

• You will be 79 years and 11 month(s) old as of July 31, 2017." * 

·The portion of your benefit that is based on disability is so.oo. 

*If you are a Beneficiary or an Alternate Payee under a Qualified Domestic Relations Order, 

the credited service reflects the Participant's credited service. 

**If you are an Alternate Payee under a Shared Payment Qualified Domestic Relations 

Order, the age reflects the Participant's age as of July 31, 2017. 

PBGC Guaranteed Benefits 

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

than the amount guaranteed by PBGC. The amount of your monthly benefit guaranteed by PBGC 

is estimated to be S954,53 . 
Mcm ber Name: 

l'vlem ber SSN: 

Credited Service Years: 26.70 

Notes: Notice 1 -No Disability 

Proposed Suspension %: 31.00% ·-- Total benefit: $1,733.50 

Proposed Suspension Amount: $537.39 

Maximum Allowable 

Suspension Amount: $683.52 

Age year: 79 

Age month(s): II 

Prorating factor (ages 75-79): 0.016700 

Final proposed reduction: $8.97 

Member Final Benefit $1,724.53 

110% PHGC Guarantee l 

Rate $64.93 .... ~ 

----~ 

PBGC Rate - First $1 ! $1!.00 

75% ofNext 33 $24.75 

Pl3GC Guarantee $954.53 ---·-- Guaranteed Limitation (110°/., 

PBGC rate) $1,049.98 
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 7
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 4.02 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

This report provides the information required by Section 4.02 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 4.02 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 4.02 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 4.02: 

Demonstration that Proposed Suspension Satisfies the Statutory Requirements

Summary 1

Deterministic projection 2

Stochastic projection 4

Assumptions for deterministic projection 5

Assumptions for stochastic projection 8

Comparison of deterministic and stochastic assumptions 12

Appendix A: New Entrant Profile 13

Appendix B: Investment Return Assumption 20
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

1

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

Under Section 4.02 of Revenue Procedure 2016-27, the application must include a demonstration that, in 

accordance with Section 432(e)(9)(D)(iv) of the Code, the proposed benefit suspension is reasonably 

estimated to enable the plan to avoid insolvency. This must include:

1. A deterministic projection

2. A stochastic projection

3. A description of the assumptions used

On the following pages, we have included:

 A deterministic projection

 A stochastic projection

 A description of the assumptions used
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

2

Deterministic Projection:

Under Section 4.02(1) of Revenue Procedure 2016-27, the deterministic projection must show the 

following:

1. For each plan year during the extended period, the Plan’s solvency ratio (the ratio of the Plan’s 

available resources to the scheduled benefits payable under the plan for the plan year) is projected 

on a deterministic basis to be at least 1.0.

2. If the Plan’s funded percentage at the end of the extended projection period is less than or equal to 

100 percent, then neither the Plan’s solvency ratio nor its available resources are projected to 

decrease in any of the last five plan years of the extended period.

On the following pages, we have included:

 A plan-year-by-plan-year deterministic projection of the available resources as defined in Section 

418E(b)(3) of the Code and the benefits under the plan. 

Note the following:

 For each plan year during the extended period, the Plan’s solvency ratio is projected on a 

deterministic basis to be at least 1.0.

 The Plan’s funded percentage at the end of the extended projection period is less than or equal 

to 100 percent, but neither the Plan’s solvency ratio nor its available resources are projected to 

decrease in any of the last five plan years of the extended period.
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed Suspension Satisfies the 

Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

3

Plan-year-by-plan-year projection of the available resources:

Revenue Procedure 2016-27, Section 4.02(1): The Proposed Suspensions is Reasonably Estimated to Enable the Plan to Avoid Insolvency - Deterministic Projection

Assumed Investment Return 6.75% for 10 years, 7.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 86,524,274 1,157,047,661 3,311,681,836 37.62% 1,445,297,878 5.014

1 12/31/2017 1,157,047,661 121,451,426 9,586,913 (260,756,505) (9,853,710) 73,390,166 1,090,865,951 3,306,369,346 34.99% 1,351,622,456 5.183

2 12/31/2018 1,090,865,951 125,299,440 9,570,693 (232,949,423) (7,136,955) 70,082,403 1,055,732,109 2,583,054,571 42.23% 1,288,681,532 5.532

3 12/31/2019 1,055,732,109 129,104,157 9,497,851 (235,102,412) (7,235,993) 67,760,814 1,019,756,527 2,573,839,082 41.02% 1,254,858,939 5.337

4 12/31/2020 1,019,756,527 132,915,501 9,497,851 (237,371,551) (6,815,865) 65,398,691 983,381,154 2,561,580,101 39.81% 1,220,752,704 5.143

5 12/31/2021 983,381,154 136,794,009 9,497,851 (240,022,859) (6,918,030) 62,981,323 945,713,447 2,545,898,575 38.63% 1,185,736,306 4.940

6 12/31/2022 945,713,447 140,066,105 9,497,851 (242,321,394) (7,022,280) 60,468,092 906,401,821 2,526,107,290 37.44% 1,148,723,215 4.740

7 12/31/2023 906,401,821 143,397,886 9,497,851 (244,243,691) (7,127,573) 57,858,574 865,784,868 2,502,230,140 36.22% 1,110,028,559 4.545

8 12/31/2024 865,784,868 146,856,501 9,497,851 (245,606,973) (7,234,950) 55,184,023 824,481,320 2,474,320,283 34.99% 1,070,088,293 4.357

9 12/31/2025 824,481,320 150,470,329 9,497,851 (246,453,271) (7,343,370) 52,485,778 783,138,636 2,442,627,517 33.75% 1,029,591,907 4.178

1 0 12/31/2026 783,138,636 154,187,423 9,497,851 (246,404,078) (7,453,875) 55,353,922 748,319,879 2,407,380,128 32.53% 994,723,957 4.037

1 1 12/31/2027 748,319,879 157,989,023 9,497,851 (245,911,190) (7,565,423) 52,899,376 715,229,516 2,369,225,471 31.59% 961,140,706 3.908

1 2 12/31/2028 715,229,516 161,966,559 9,497,851 (244,705,543) (7,679,055) 50,607,707 684,917,035 2,328,392,317 30.72% 929,622,578 3.799

1 3 12/31/2029 684,917,035 166,030,497 9,475,797 (243,043,092) (7,793,730) 48,543,883 658,130,389 2,285,412,352 29.97% 901,173,481 3.708

1 4 12/31/2030 658,130,389 170,270,698 9,425,111 (241,470,233) (7,910,490) 46,746,595 635,192,069 2,240,594,177 29.37% 876,662,303 3.631

1 5 12/31/2031 635,192,069 169,563,680 9,251,903 (239,420,826) (8,029,335) 45,065,609 611,623,102 2,193,702,148 28.96% 851,043,927 3.555

1 6 12/31/2032 611,623,102 168,862,638 8,949,319 (237,240,370) (8,150,265) 43,337,532 587,381,956 2,145,072,932 28.51% 824,622,326 3.476

1 7 12/31/2033 587,381,956 168,190,146 8,949,319 (233,684,250) (8,272,238) 41,623,008 564,187,942 2,094,710,727 28.04% 797,872,192 3.414

1 8 12/31/2034 564,187,942 167,514,392 4,474,660 (229,803,938) (8,396,295) 39,831,176 537,807,937 2,043,922,818 27.60% 767,611,875 3.340

1 9 12/31/2035 537,807,937 166,887,631 - (225,711,150) (8,522,438) 37,810,122 508,272,103 1,993,027,459 26.98% 733,983,253 3.252

2 0 12/31/2036 508,272,103 166,266,861 - (220,932,891) (8,650,665) 35,746,032 480,701,440 1,942,254,068 26.17% 701,634,331 3.176

2 1 12/31/2037 480,701,440 165,712,716 - (215,299,990) (8,779,935) 33,863,838 456,198,069 1,892,344,518 25.40% 671,498,059 3.119

2 2 12/31/2038 456,198,069 165,172,640 - (209,388,299) (8,911,290) 32,222,595 435,293,714 1,844,281,344 24.74% 644,682,014 3.079

2 3 12/31/2039 435,293,714 164,651,382 - (203,122,786) (9,044,730) 30,865,174 418,642,754 1,798,527,785 24.20% 621,765,540 3.061

2 4 12/31/2040 418,642,754 164,117,484 - (197,058,621) (9,180,255) 29,818,654 406,340,016 1,755,665,519 23.85% 603,398,637 3.062

2 5 12/31/2041 406,340,016 163,535,462 - (190,435,568) (9,317,865) 29,117,327 399,239,373 1,715,743,348 23.68% 589,674,941 3.096

2 6 12/31/2042 399,239,373 163,004,478 - (183,914,711) (9,457,560) 28,804,161 397,675,741 1,679,608,776 23.77% 581,590,452 3.162

2 7 12/31/2043 397,675,741 162,491,114 - (177,237,175) (9,599,340) 28,912,728 402,243,068 1,647,490,586 24.14% 579,480,243 3.270

2 8 12/31/2044 402,243,068 161,975,665 - (170,161,875) (9,743,205) 29,495,877 413,809,529 1,619,906,781 24.83% 583,971,405 3.432

2 9 12/31/2045 413,809,529 161,490,611 - (163,898,114) (9,889,155) 30,574,590 432,087,462 1,597,670,274 25.90% 595,985,576 3.636

3 0 12/31/2046 432,087,462 161,014,586 - (157,586,141) (10,037,190) 32,158,732 457,637,450 1,580,398,195 27.34% 615,223,590 3.904

3 1 12/31/2047 457,637,450 160,566,917 - (151,683,176) (10,187,310) 34,273,925 490,607,806 1,568,572,887 29.18% 642,290,981 4.234

3 2 12/31/2048 490,607,806 160,096,890 - (145,931,901) (10,340,558) 36,939,002 531,371,239 1,562,239,305 31.40% 677,303,140 4.641

"CY" = current plan year
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

4

Stochastic Projection:

Under Section 4.02(2) of Revenue Procedure 2016-27, the stochastic projection, which reflects variance in 

investment returns, must show that the probability that the Plan is projected to avoid insolvency 

throughout the extended period as a result of the suspension is at least 50 percent.

In the following exhibits, we have included a stochastic projection with 5,000 simulations of investment 

returns over the extended period. The results of the stochastic projection show that the probability of 

avoiding insolvency throughout the extended period is at least 50 percent.

Stochastic Illustration:

The stochastic projection below is based on the following assumptions, as described in the assumptions for 

the actuarial projection required under Section 3.02 of Revenue Procedure 2016-27:

The probability of avoiding insolvency throughout the extended period is at least 50% (55%).

Stochastic Assumption Select Ultimate

Expected Arithmetic Return 7.19% 8.19%

Standard Deviation 11.50% 11.55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2017

38%

38%

38%

38%

38%

38%

0%

100%

2019

49%

45%

43%

41%

31%

43%

3%

100%

2021

58%

45%

40%

35%

23%

40%

7%

100%

2023

70%

46%

37%

30%

13%

38%

12%

100%

2025

83%

46%

34%

24%

5%

36%

17%

100%

2027

99%

47%

32%

19%

0%

35%

21%

98%

2029

116%

48%

29%

14%

0%

34%

26%

93%

2031

140%

51%

28%

10%

0%

35%

33%

87%

2033

178%

55%

26%

4%

0%

37%

40%

80%

2035

228%

61%

24%

0%

0%

40%

50%

73%

2037

285%

66%

22%

0%

0%

45%

62%

67%

2039

351%

74%

20%

0%

0%

51%

76%

62%

2041

434%

86%

17%

0%

0%

59%

94%

59%

2043

526%

99%

16%

0%

0%

69%

115%

57%

2045

648%

115%

17%

0%

0%

82%

140%

56%

2047

794%

133%

17%

0%

0%

97%

168%

55%

2049

908%

151%

20%

0%

0%

113%

201%

55% Probability Funded Percentage

Funded Percentage

Prob > 0% 1st - 25th percentile 25th - 50th percentile 50th - 75th percentile 75th - 99th percentile

Revenue Procedure 2016-27 Calculations

As of 1/1

99th %

75th %

50th %

25th %

1st %

Mean

Std Dev

Prob > 0%

Revenue Procedure 2016-27 Calculations
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

5

Description of the assumptions used (4.02(3)(a)):

Under Section 4.02(3)(a) of Revenue Procedure 2016-27, if the actuarial assumptions used for the 

deterministic projection differ from those used under Section 3.01 of Revenue Procedure 2016-27, the 

application must include an explanation of the information and analysis that led to the differences.

The projection used under Section 4.02(1) of Revenue Procedure 2016-27 is generally based on the same 

actuarial assumptions that are included in the projection used under Section 3.01 of Revenue Procedure 

2016-27 with some exceptions.

Any changes in the assumptions, along with an explanation for the change, are described in the actuarial 

projection under the information required by Section 3.02 of Revenue Procedure 2016-27. For reference, 

those changes are repeated below.

Assumptions:

Generally, the assumptions used in the actuarial projection above are the same as those used in the actuarial 

projection required under Section 3.01 of Revenue Procedure 2016-27. Please refer to the actuarial projection 

under Section 3.01 of Revenue Procedure 2016-27 for more information regarding the assumptions. Where 

assumptions differ from those described under Section 3.01 of Revenue Procedure 2016-27, additional 

commentary is provided below.

 Contribution Rate Increases: Contribution rate increases are assumed to be equal to those required 

under the Rehabilitation Plan until 2018. Starting in 2018, contribution rate increases are assumed to 

be 3.5% per year for 4 years, then 3.0% per year for 9 years, and then 0.0% thereafter. This assumption 

was selected based on guidance and information provided in good faith from the Board of Trustees.

The Trustees last updated the Rehabilitation Plan in 2012, prior to the passage of MPRA. The 

Rehabilitation Plan included an exhaustion of all reasonable measures and a stated goal of forestalling 

possible insolvency. The various schedules of the Rehabilitation Plan required contribution rate 

increases between 6.00% and 8.25% per year, continuing indefinitely. After reviewing experience 

through 2015, there was disagreement among the Board of Trustees about whether these contribution 

rate increases were sustainable. Following arbitration, it was determined that the increases required 

under the Rehabilitation Plan were in fact unsustainable.

In preparing this application for a suspension of benefits, the schedules for future increases in 

contribution rates were reevaluated. As part of this review, consideration was given to macroeconomic 

factors, the financial strength of participating employers, competition in the marketplace, the 

relationship between contributions and benefit levels, and expected changes in wage packages over the 

next several years. Based on this review, the assumption described above was developed.

 Active Population: Based on guidance provided in good faith from the Board of Trustees and a 

historical review of the active population (including an analysis of the population of certain contributing 

employers), the following changes in the active population were assumed:
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

6

o The number of participants employed by United Parcel Service (UPS), ABF Freight (ABF) and 

Yellow Roadway Corporation (YRC) is assumed to remain at 2016 levels throughout the 

projection period. 2016 levels are equal to the count of these participants in the January 1, 

2016 actuarial valuation.

o The number of all participants not employed by UPS, ABF or YRC is assumed to decline by 2% 

per year.

Please see the historical information required under Section 6.03 of Revenue Procedure 2016-27 for 

more information regarding the active population. Also note that while we are not assuming any future 

employer withdrawals as part of the 2% per year population decline, any withdrawal from the Fund 

would result in approximately 20 years of withdrawal liability payments.

 Non-Disabled Mortality: The non-disabled mortality assumption has changed from the sex-distinct 

RP2000 Mortality Tables with Blue Collar adjustment projected 6 years with Scale BB to the sex-distinct 

RP2014 Mortality Tables with Blue Collar adjustment loaded by 15% and projected generationally using 

50% of the MP2015 projection scale. This change was made to better reflect anticipated changes in 

mortality rates over the projection period. While the base mortality rates as of 2016 for the revised 

assumption are approximately equal to the base mortality rates in the prior assumption, the choice to 

add a generational projection was in part made as a result of the Plan projecting solvency over the 

projection period instead of insolvency in the short-term. This assumption was chosen based on a 

review of standard mortality tables and projection scales, historical and current demographic data, and 

reflecting anticipated future experience and professional judgment.

 Disabled Mortality: The non-disabled mortality assumption has changed from the sex-distinct RP2000 

Disabled Mortality Tables projected 6 years with Scale BB to the sex-distinct RP2014 Disabled Mortality 

Tables loaded by 15% and projected generationally using 50% of the MP2015 projection scale. This 

change was made to better reflect anticipated changes in mortality rates over the projection period. 

While the base mortality rates as of 2016 for the revised assumption are approximately equal to the 

base mortality rates in the prior assumption, the choice to add a generational projection was in part 

made as a result of the Plan projecting solvency over the projection period instead of insolvency in the 

short-term. This assumption was chosen based on a review of standard mortality tables and projection 

scales, historical and current demographic data, and reflecting anticipated future experience and 

professional judgment.

 Contribution Base Units and Contribution Rates: There are significant differences in the contribution 

base units and contribution rates under each schedule of the Rehabilitation Plan. The table below 

shows the active participant count, average contribution base units and average contribution rate 

under each schedule of the Rehabilitation Plan. This information is based on census data as of January 

1, 2016. Note that because of the active population scenario described above, results are shown 

separately for UPS, ABF and YRC.
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

7

For each active participant in the valuation, hours are assumed to be the average of a participant’s 

actual hours worked in the three plan years preceding the valuation date. Contributions made on 

behalf of each participant are assumed to be equal to the assumed hours worked multiplied by a 

participant’s contribution rate.

Note that the participant count in the Default Schedule shown above includes approximately 1,600 

active participants who are employed by a withdrawn employer but have yet to incur a three-year 

break in service. We assume no future contributions on hours worked for these participants. After 

making this adjustment, the total assumed contribution base units is approximately 14.7 million hours.

 New Entrant Profile: See Appendix A for a description of the new entrant profile used in the 

projections. Note that we use a different new entrant profile for each schedule of the Rehabilitation 

Plan and also use a different new entrant profile for employees of contributing employers that are 

isolated as part of the active population assumption.

 Investment Return: The investment return is assumed to be 6.75% per year for the 10 years beginning 

January 1, 2016, and 7.50% thereafter. Please see Appendix B for additional information regarding the 

investment return assumption.

 Administrative Expenses: Regular operating expenses are assumed to be equal to $6,160,000 in 2016 

and are assumed to increase by 1.50% per year. In addition, we have assumed the following nonrecurring special expenses:

Year 2016 2017 2018 2019

Special Legal Expenses $2,700,000 $2,700,000 $500,000 $500,000

Special Suspension Related Expenses $1,000,000 $500,000 $0 $0

The assumed regular operating expenses are based on the actual operating expenses for 2015, adjusted 

for non-recurring special expenses. The assumed 1.50% annual increase in regular operating expenses 

was developed based on an analysis of historical changes in the operating expenses of the Plan and 

guidance from the Fund Office regarding future expectations of operating expenses. The special, nonrecurring legal and suspension related expenses were developed based on guidance from the Board of 

Trustees and Plan Counsel

Revenue Procedure 2016-27, Section 3.02: Active Participants, Base Units and Contribution Rates

Rehabilitation Participants Average Average Contribution

Plan Schedule as of 1/1/2016 Hours per Participant Rate per Participant

Default 4,271 1,021 4.0614

A 2 1 1,665 3.8210

B 532 1,248 6.8826

B (UPS) 2,216 1,034 11.4038

C 519 1,734 4.1211

D 9 8 1,648 4.0850

E 1,422 1,733 3.7458

E (UPS & ABF) 1,917 1,954 14.6148

G (YRC) 580 1,799 2.3361
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

8

Description of the assumptions used (4.02(3)(b)):

Under Section 4.02(3)(b) of Revenue Procedure 2016-27, the application should include the following 

information regarding the stochastic projection: 

 The assumed mix of assets (and how it compares with the current mix of assets)

 The distribution of returns for each asset class

 The correlation among those rates of returns

 Any other economic variables used in the projections

On the following pages, we have included:

 A distribution of the expected returns and standard deviations for each asset class as provided by 

Meketa Investment Group (“Meketa”). 

 The correlation among the rates of return as provided by Meketa

 A distribution of the expected returns and standard deviations for each asset class as published 

in the Horizon Actuarial 2016 Survey of Capital Market Assumptions (“2016 Survey”). 

 The correlation among the rates of return as published in the 2016 Survey.

Note that the assumed mix of assets and the current mix of assets can be found in Appendix B. 
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

9

Expected Returns and Standard Deviations for Each Asset Class as Provided by Meketa:

2016 2016

Asset Class Expected Return Standard Deviation

Cash Equivalents 2.3% 1.0%

Short-term Investment Grade Bonds 2.9% 2.0%

Investment Grade Bonds 3.7% 4.5%

Investment Grade Corporate Bonds 4.6% 7.0%

Long-term Corporate Bonds 5.7% 11.0%

Long-term Government Bonds 4.4% 12.5%

TIPS 3.6% 7.5%

Short-term TIPS 2.9% 4.0%

Long-term TIPS 4.6% 12.0%

Global ILBs 4.1% 10.0%

High Yield Bonds 7.6% 12.5%

Bank Loans 6.2% 10.0%

Foreign Bonds 3.0% 9.0%

Emerging Market Bonds (major) 6.7% 13.0%

Emerging Market Bonds (local) 7.3% 14.0%

Convertible Bonds 6.5% 15.0%

Investment Grade RE Debt 4.2% 9.0%

Portable Alpha (Core Bond) 7.4% 13.0%

US Equity 9.5% 18.0%

US Large Cap 9.5% 17.5%

US Mid Cap 9.8% 20.0%

US Small Cap 10.1% 22.0%

US Micro Cap 10.2% 23.0%

Developed Market Equity (non-US) 10.1% 20.0%

Developed Market Small Cap 9.4% 22.0%

Emerging Market Equity 14.0% 26.5%

Emerging Market Small Cap 13.8% 28.5%

Frontier Market Equity 12.6% 25.0%

Global Equity 10.1% 19.5%

Private Equity 12.3% 24.0%

Buyouts 12.9% 25.0%

Venture Capital 15.6% 35.0%

Mezzanine Debt 8.9% 20.0%

Distressed Debt 11.4% 27.0%

Private Equity Fund of Funds 11.0% 24.0%

Portable Alpha (US Equity) 14.6% 27.5%

Real Estate 8.7% 18.0%

REITs 10.8% 29.0%

Core Private Real Estate 6.7% 12.5%

Value-Added Real Estate 9.5% 20.0%

Opportunistic Real Estate 12.4% 25.0%

High Yield Real Estate Debt 9.6% 23.0%

Natural Resources (Public) 10.7% 24.0%

Natural Resources (Private) 10.9% 22.0%

Timberland 7.5% 12.0%

Farmland 8.5% 13.0%

Oil & Gas E&P 12.6% 27.0%

Mining 13.0% 29.0%

Commodities: naïve 6.3% 21.0%

Commodities: term-structure NA NA

Commodities: trend-following NA NA

Commodities: risk parity (15% vol) 6.3% 16.0%

Commodities: Real Return 7.8% 25.0%

MLPs 10.7% 24.0%

Infrastructure (Public) 9.7% 19.5%

Infrastructure (Core Private) 8.0% 16.0%

Infrastructure (Non-Core Private) 11.7% 23.0%

Hedge Funds 6.2% 10.5%

Long-Short 5.4% 12.0%

Event-Driven 7.1% 11.0%

Global Macro 6.2% 8.5%

Fixed Income/L-S Credit 5.3% 10.0%

Relative Value/Arbitrage 6.7% 10.5%

Hedge Fund of Funds 4.6% 10.0%

Risk Parity (10% vol) 6.5% 11.0%

Tactical Asset Allocation 5.8% 12.5%
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

10

Correlation Among Rates of Return as Provided by Meketa:

Expected Returns and Standard Deviations for Each Asset Class as Published in the 2016 Survey:

Asset Name

Investment 

Grade Bonds TIPS

High Yield 

Bonds

Bank 

Loans

Emerging 

Market Bonds 

(local)

US 

Equity

Developed 

Market Equity 

(non-US)

Emerging 

Market 

Equity

Private 

Equity REITs

ValueAdded 

Real 

Estate

Opportunistic 

Real Estate

Natural 

Resources 

(Private)

Core 

Infrastructure

Non-Core 

Infrastructure

Investment Grade Bonds 1.00 0.80 0.20 0.00 0.35 0.05 0.05 0.05 0.05 0.15 0.20 0.15 0.10 0.30 0.30

TIPS 0.80 1.00 0.30 0.20 0.40 0.00 0.15 0.15 0.05 0.20 0.10 0.05 0.10 0.30 0.30

High Yield Bonds 0.20 0.30 1.00 0.80 0.65 0.70 0.70 0.70 0.65 0.70 0.50 0.55 0.45 0.60 0.65

Bank Loans 0.00 0.20 0.80 1.00 0.40 0.60 0.60 0.55 0.65 0.55 0.45 0.50 0.40 0.50 0.50

Emerging Market Bonds (local) 0.35 0.40 0.65 0.40 1.00 0.65 0.75 0.80 0.55 0.60 0.25 0.35 0.60 0.60 0.65

US Equity 0.05 0.00 0.70 0.60 0.65 1.00 0.90 0.80 0.85 0.70 0.50 0.60 0.65 0.55 0.65

Developed Market Equity (non-US) 0.05 0.15 0.70 0.60 0.75 0.90 1.00 0.90 0.80 0.70 0.45 0.55 0.60 0.55 0.70

Emerging Market Equity 0.05 0.15 0.70 0.55 0.80 0.80 0.90 1.00 0.75 0.60 0.40 0.50 0.60 0.50 0.60

Private Equity 0.05 0.05 0.65 0.65 0.55 0.85 0.80 0.75 1.00 0.45 0.45 0.50 0.55 0.45 0.65

REITs 0.15 0.20 0.70 0.55 0.60 0.70 0.70 0.60 0.45 1.00 0.80 0.70 0.35 0.45 0.45

Value-Added Real Estate 0.20 0.10 0.50 0.45 0.25 0.50 0.45 0.40 0.45 0.80 1.00 0.90 0.50 0.55 0.60

Opportunistic Real Estate 0.15 0.05 0.55 0.50 0.35 0.60 0.55 0.50 0.50 0.70 0.90 1.00 0.50 0.50 0.60

Natural Resources (Private) 0.10 0.10 0.45 0.40 0.60 0.65 0.60 0.60 0.55 0.35 0.50 0.50 1.00 0.60 0.65

Core Infrastructure 0.30 0.30 0.60 0.50 0.60 0.55 0.55 0.50 0.45 0.45 0.55 0.50 0.60 1.00 0.95

Non-Core Infrastructure 0.30 0.30 0.65 0.50 0.65 0.65 0.70 0.60 0.65 0.45 0.60 0.60 0.65 0.95 1.00

Expected Returns

10-Year Horizon 20-Year Horizon Standard

Asset Class Arith. Geom. Arith. Geom. Deviation

 1 US Equity - Large Cap 7.98% 6.64% 9.25% 7.89% 16.92%

 2 US Equity - Small/Mid Cap 9.07% 7.00% 10.40% 8.23% 21.01%

 3 Non-US Equity - Developed 8.90% 7.12% 9.77% 8.02% 19.50%

 4 Non-US Equity - Emerging 11.68% 8.48% 12.46% 9.11% 26.35%

 5 US Corporate Bonds - Core 3.59% 3.41% 4.75% 4.58% 5.96%

 6 US Corporate Bonds - Long Duration 4.37% 3.82% 5.58% 4.87% 10.49%

 7 US Corporate Bonds - High Yield 6.49% 5.90% 7.40% 6.81% 11.01%

 8 Non-US Debt - Developed 2.74% 2.43% 4.01% 3.70% 7.58%

 9 Non-US Debt - Emerging 6.42% 5.77% 7.20% 6.43% 11.58%

10 US Treasuries (Cash Equivalents) 2.22% 2.14% 3.18% 3.15% 2.79%

11 TIPS (Inflation-Protected) 3.03% 2.80% 4.27% 3.94% 6.51%

12 Real Estate 7.48% 6.36% 7.75% 6.75% 14.74%

13 Hedge Funds 5.77% 5.41% 6.59% 6.16% 8.39%

14 Commodities 5.62% 3.98% 6.47% 4.84% 18.50%

15 Infrastructure 7.52% 6.59% 8.26% 7.12% 13.78%

16 Private Equity 11.77% 9.22% 12.94% 10.33% 23.12%

Inflation 2.16% 2.16% 2.31% 2.31% 1.78%
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

11

Correlation Among Rates of Return as Published in the 2016 Survey:

Correlation Matrix

Asset Class 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

 1 US Equity - Large Cap 1.00

 2 US Equity - Small/Mid Cap 0.90 1.00

 3 Non-US Equity - Developed 0.82 0.76 1.00

 4 Non-US Equity - Emerging 0.73 0.72 0.79 1.00

 5 US Corporate Bonds - Core 0.15 0.11 0.15 0.10 1.00

 6 US Corporate Bonds - Long Duration 0.13 0.09 0.14 0.11 0.91 1.00

 7 US Corporate Bonds - High Yield 0.64 0.64 0.62 0.64 0.36 0.35 1.00

 8 Non-US Debt - Developed 0.11 0.06 0.30 0.17 0.57 0.53 0.21 1.00

 9 Non-US Debt - Emerging 0.55 0.51 0.59 0.66 0.44 0.38 0.63 0.40 1.00

10 US Treasuries (Cash Equivalents) (0.08) (0.10) (0.06) (0.06) 0.30 0.22 (0.04) 0.23 0.10 1.00

11 TIPS (Inflation-Protected) 0.02 0.01 0.08 0.13 0.68 0.63 0.27 0.51 0.40 0.29 1.00

12 Real Estate 0.38 0.38 0.36 0.31 0.07 0.11 0.31 0.06 0.25 0.04 0.13 1.00

13 Hedge Funds 0.62 0.62 0.65 0.64 0.14 0.10 0.54 0.11 0.48 (0.01) 0.11 0.27 1.00

14 Commodities 0.30 0.30 0.40 0.44 0.07 0.03 0.32 0.20 0.36 0.02 0.26 0.22 0.43 1.00

15 Infrastructure 0.53 0.51 0.56 0.50 0.23 0.21 0.48 0.23 0.37 0.02 0.16 0.27 0.46 0.32 1.00

16 Private Equity 0.77 0.76 0.72 0.64 0.02 0.05 0.54 0.06 0.46 (0.05) (0.04) 0.39 0.60 0.29 0.43 1.00

Inflation
Revenue Procedure 2016-27 Section 4.02: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

12

Description of the assumptions used (4.02(3)(c)):

Under Section 4.02(3)(c) of Revenue Procedure 2016-27, if the actuarial assumptions used for the 

stochastic projections described in Section 4.02(2) of Revenue Procedure 2016-27 differ from those used 

for the deterministic projection described in Section 4.02(1) of Revenue Procedure 2016-27, the application 

should include justification for the difference.

There is no difference in the assumptions used for the deterministic projection and the stochastic 

projection, other than related to investment returns. Please see Appendix B for an explanation of the 

information and analysis that led to the selection of the investment return assumption used for the 

stochastic projection.
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

13

New Entrant Profile

The new entrant profile used in the projections consists of a separate new entrant profile for each 

schedule of the Rehabilitation Plan. In addition, because of the industry activity assumption 

recommended by the Board of Trustees, there is a separate new entrant profile for UPS participants in 

Schedule B, UPS and ABF participants in Schedule E, and YRC participants in Schedule G. This is 

necessary because of the different characteristics of participants in each schedule. All new entrants are 

assumed to be male and are assumed to enter the Plan with 0.50 years of service.

The age of new entrants is based on a historical analysis of new entrants to the Plan over the seven year 

period ending on December 31, 2015. The distribution of new entrants by age is as follows:

For each schedule or subset of a schedule, a distribution of the contribution rate that counts for benefit 

accruals and the total contribution is created. Based on this distribution and the age distribution of new 

entrants, the following new entrant profiles are created. Note that participants employed by employers 

that have withdrawn but have not yet incurred a complete break in service are not included in this 

analysis.

Revenue Procedure 2016-27, Section 3.02: Historical New Entrants

Age New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants New Entrants Total % of 

Band in 2009 in 2010 in 2011 in 2012 in 2013 in 2014 in 2015 New Entrants Total

< 25 179 131 140 150 137 232 187 1,156 19%

25 - 30 6 8 7 5 107 117 131 138 171 807 13%

30 - 35 231 286 562 479 313 292 245 2,408 40%

35 - 40 4 1 4 6 4 8 4 5 5 9 7 6 9 9 414 7 %

40 - 45 4 2 4 8 6 5 5 9 4 9 6 7 6 4 394 7 %

45 - 50 4 0 4 0 4 1 4 7 4 2 7 2 6 7 349 6 %

50 - 55 3 6 2 5 4 0 3 5 4 0 4 9 4 7 272 5 %

55 - 60 1 3 1 9 2 5 2 3 2 2 3 3 2 7 162 3 %

> 60 3 6 9 6 6 9 1 4 5 3 1 %

Total 653 676 1,037 961 799 968 921 6,015
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

14

New Entrant Profile for Default Schedule:

Revenue Procedure 2016-27, Section 3.02: Default Schedule New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 4 0.9778 1,222 1.2125 1,516

2 2 1,250 8 2.2818 2,852 2.8635 3,579

2 2 1,250 3 3.8529 4,816 4.7442 5,930

2 2 1,250 1 5.9065 7,383 7.3358 9,170

2 2 1,250 3 8.4518 10,565 10.3118 12,890

2 2 1,250 1 9.6476 12,060 13.1562 16,445

2 7 1,250 3 0.9778 1,222 1.2125 1,516

2 7 1,250 5 2.2818 2,852 2.8635 3,579

2 7 1,250 2 3.8529 4,816 4.7442 5,930

2 7 1,250 2 8.4518 10,565 10.3118 12,890

3 2 1,250 9 0.9778 1,222 1.2125 1,516

3 2 1,250 1 6 2.2818 2,852 2.8635 3,579

3 2 1,250 6 3.8529 4,816 4.7442 5,930

3 2 1,250 1 5.9065 7,383 7.3358 9,170

3 2 1,250 1 7.7506 9,688 9.1720 11,465

3 2 1,250 6 8.4518 10,565 10.3118 12,890

3 2 1,250 1 9.6476 12,060 13.1562 16,445

3 7 1,250 2 0.9778 1,222 1.2125 1,516

3 7 1,250 3 2.2818 2,852 2.8635 3,579

3 7 1,250 1 3.8529 4,816 4.7442 5,930

3 7 1,250 1 8.4518 10,565 10.3118 12,890

4 2 1,250 2 0.9778 1,222 1.2125 1,516

4 2 1,250 3 2.2818 2,852 2.8635 3,579

4 2 1,250 1 3.8529 4,816 4.7442 5,930

4 2 1,250 1 8.4518 10,565 10.3118 12,890

4 7 1,250 1 0.9778 1,222 1.2125 1,516

4 7 1,250 2 2.2818 2,852 2.8635 3,579

4 7 1,250 1 3.8529 4,816 4.7442 5,930

4 7 1,250 1 8.4518 10,565 10.3118 12,890

5 2 1,250 2 0.9778 1,222 1.2125 1,516

5 2 1,250 3 2.2818 2,852 2.8635 3,579

5 2 1,250 1 3.8529 4,816 4.7442 5,930

5 2 1,250 1 8.4518 10,565 10.3118 12,890
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

15

New Entrant Profile for Schedule A:

Revenue Procedure 2016-27, Section 3.02: Schedule A New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,665 9 2.5212 4,198 3.2641 5,435

2 2 1,665 1 0 3.4304 5,712 4.3273 7,205

2 7 1,665 6 2.5212 4,198 3.2641 5,435

2 7 1,665 7 3.4304 5,712 4.3273 7,205

3 2 1,665 1 9 2.5212 4,198 3.2641 5,435

3 2 1,665 2 1 3.4304 5,712 4.3273 7,205

3 7 1,665 3 2.5212 4,198 3.2641 5,435

3 7 1,665 4 3.4304 5,712 4.3273 7,205

4 2 1,665 3 2.5212 4,198 3.2641 5,435

4 2 1,665 3 3.4304 5,712 4.3273 7,205

4 7 1,665 3 2.5212 4,198 3.2641 5,435

4 7 1,665 3 3.4304 5,712 4.3273 7,205

5 2 1,665 4 2.5212 4,198 3.2641 5,435

5 2 1,665 4 3.4304 5,712 4.3273 7,205
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

16

New Entrant Profile for Schedule B (Not Including UPS Participants):

New Entrant Profile for Schedule B (UPS Participants Only):

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (Not Including UPS Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,250 2 0.5858 732 0.7009 876

2 2 1,250 4 2.2235 2,779 3.0555 3,819

2 2 1,250 3 3.7541 4,693 5.1287 6,411

2 2 1,250 9 8.4524 10,566 10.6814 13,352

2 7 1,250 2 0.5858 732 0.7009 876

2 7 1,250 3 2.2235 2,779 3.0555 3,819

2 7 1,250 2 3.7541 4,693 5.1287 6,411

2 7 1,250 6 8.4524 10,566 10.6814 13,352

3 2 1,250 5 0.5858 732 0.7009 876

3 2 1,250 8 2.2235 2,779 3.0555 3,819

3 2 1,250 6 3.7541 4,693 5.1287 6,411

3 2 1,250 1 4.8041 6,005 6.6833 8,354

3 2 1,250 1 8 8.4524 10,566 10.6814 13,352

3 2 1,250 1 10.7583 13,448 14.6831 18,354

3 7 1,250 1 0.5858 732 0.7009 876

3 7 1,250 1 2.2235 2,779 3.0555 3,819

3 7 1,250 1 3.7541 4,693 5.1287 6,411

3 7 1,250 3 8.4524 10,566 10.6814 13,352

4 2 1,250 1 0.5858 732 0.7009 876

4 2 1,250 1 2.2235 2,779 3.0555 3,819

4 2 1,250 1 3.7541 4,693 5.1287 6,411

4 2 1,250 3 8.4524 10,566 10.6814 13,352

4 7 1,250 1 0.5858 732 0.7009 876

4 7 1,250 1 2.2235 2,779 3.0555 3,819

4 7 1,250 1 3.7541 4,693 5.1287 6,411

4 7 1,250 3 8.4524 10,566 10.6814 13,352

5 2 1,250 1 0.5858 732 0.7009 876

5 2 1,250 2 2.2235 2,779 3.0555 3,819

5 2 1,250 1 3.7541 4,693 5.1287 6,411

5 2 1,250 4 8.4524 10,566 10.6814 13,352

Revenue Procedure 2016-27, Section 3.02: Schedule B New Entrant Profile (UPS Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,035 1 9 8.4520 8,748 11.3270 11,723

2 7 1,035 1 3 8.4520 8,748 11.3270 11,723

3 2 1,035 3 9 8.4520 8,748 11.3270 11,723

3 7 1,035 7 8.4520 8,748 11.3270 11,723

4 2 1,035 6 8.4520 8,748 11.3270 11,723

4 7 1,035 6 8.4520 8,748 11.3270 11,723

5 2 1,035 8 8.4520 8,748 11.3270 11,723
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

17

New Entrant Profile for Schedule C:

New Entrant Profile for Schedule D:

Revenue Procedure 2016-27, Section 3.02: Schedule C New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,735 1 0 1.7189 2,982 2.3286 4,040

2 2 1,735 7 3.5953 6,238 4.7893 8,309

2 2 1,735 2 6.6416 11,523 9.4514 16,398

2 7 1,735 7 1.7189 2,982 2.3286 4,040

2 7 1,735 5 3.5953 6,238 4.7893 8,309

2 7 1,735 1 6.6416 11,523 9.4514 16,398

3 2 1,735 2 1 1.7189 2,982 2.3286 4,040

3 2 1,735 1 4 3.5953 6,238 4.7893 8,309

3 2 1,735 1 4.9375 8,567 6.8369 11,862

3 2 1,735 4 6.6416 11,523 9.4514 16,398

3 7 1,735 4 1.7189 2,982 2.3286 4,040

3 7 1,735 2 3.5953 6,238 4.7893 8,309

3 7 1,735 1 6.6416 11,523 9.4514 16,398

4 2 1,735 3 1.7189 2,982 2.3286 4,040

4 2 1,735 2 3.5953 6,238 4.7893 8,309

4 2 1,735 1 6.6416 11,523 9.4514 16,398

4 7 1,735 3 1.7189 2,982 2.3286 4,040

4 7 1,735 2 3.5953 6,238 4.7893 8,309

4 7 1,735 1 6.6416 11,523 9.4514 16,398

5 2 1,735 4 1.7189 2,982 2.3286 4,040

5 2 1,735 3 3.5953 6,238 4.7893 8,309

5 2 1,735 1 6.6416 11,523 9.4514 16,398

Revenue Procedure 2016-27, Section 3.02: Schedule D New Entrant Profile

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,650 4 1.6202 2,673 2.3035 3,801

2 2 1,650 1 5 3.1804 5,248 4.5196 7,457

2 7 1,650 2 1.6202 2,673 2.3035 3,801

2 7 1,650 1 1 3.1804 5,248 4.5196 7,457

3 2 1,650 7 1.6202 2,673 2.3035 3,801

3 2 1,650 3 2 3.1804 5,248 4.5196 7,457

3 7 1,650 1 1.6202 2,673 2.3035 3,801

3 7 1,650 6 3.1804 5,248 4.5196 7,457

4 2 1,650 1 1.6202 2,673 2.3035 3,801

4 2 1,650 5 3.1804 5,248 4.5196 7,457

4 7 1,650 1 1.6202 2,673 2.3035 3,801

4 7 1,650 5 3.1804 5,248 4.5196 7,457

5 2 1,650 1 1.6202 2,673 2.3035 3,801

5 2 1,650 7 3.1804 5,248 4.5196 7,457
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

18

New Entrant Profile for Schedule E (Not Including UPS or ABF Participants):

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (Not Including UPS or ABF Participants)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,765 2 0.9356 1,651 1.2346 2,179

2 2 1,765 1 1 1.6024 2,828 2.3612 4,167

2 2 1,765 3 3.3145 5,850 4.9090 8,664

2 2 1,765 1 4.6104 8,137 6.7161 11,854

2 2 1,765 1 9.1719 16,188 13.5041 23,835

2 7 1,765 2 0.9356 1,651 1.2346 2,179

2 7 1,765 8 1.6024 2,828 2.3612 4,167

2 7 1,765 2 3.3145 5,850 4.9090 8,664

2 7 1,765 1 4.6104 8,137 6.7161 11,854

2 7 1,765 1 9.1719 16,188 13.5041 23,835

3 2 1,765 5 0.9356 1,651 1.2346 2,179

3 2 1,765 2 3 1.6024 2,828 2.3612 4,167

3 2 1,765 6 3.3145 5,850 4.9090 8,664

3 2 1,765 3 4.6104 8,137 6.7161 11,854

3 2 1,765 1 7.0318 12,411 8.8851 15,682

3 2 1,765 2 9.1719 16,188 13.5041 23,835

3 7 1,765 1 0.9356 1,651 1.2346 2,179

3 7 1,765 4 1.6024 2,828 2.3612 4,167

3 7 1,765 1 3.3145 5,850 4.9090 8,664

3 7 1,765 1 4.6104 8,137 6.7161 11,854

4 2 1,765 1 0.9356 1,651 1.2346 2,179

4 2 1,765 4 1.6024 2,828 2.3612 4,167

4 2 1,765 1 3.3145 5,850 4.9090 8,664

4 7 1,765 1 0.9356 1,651 1.2346 2,179

4 7 1,765 3 1.6024 2,828 2.3612 4,167

4 7 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 0.9356 1,651 1.2346 2,179

5 2 1,765 5 1.6024 2,828 2.3612 4,167

5 2 1,765 1 3.3145 5,850 4.9090 8,664

5 2 1,765 1 4.6104 8,137 6.7161 11,854
Appendix A: Revenue Procedure 2016-27 Section 4.02

New Entrant Profile

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

19

New Entrant Profile for Schedule E (UPS and ABF Participants Only):

New Entrant Profile for Schedule G (YRC Participants Only):

Revenue Procedure 2016-27, Section 3.02: Schedule E New Entrant Profile (UPS and ABF Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,955 1 9 9.6256 18,818 14.6148 28,572

2 7 1,955 1 3 9.6256 18,818 14.6148 28,572

3 2 1,955 4 0 9.6256 18,818 14.6148 28,572

3 7 1,955 7 9.6256 18,818 14.6148 28,572

4 2 1,955 7 9.6256 18,818 14.6148 28,572

4 7 1,955 6 9.6256 18,818 14.6148 28,572

5 2 1,955 8 9.6256 18,818 14.6148 28,572

Revenue Procedure 2016-27, Section 3.02: Schedule G New Entrant Profile (YRC Participants Only)

Benefit Benefit Total Total

Age Hours Count Rate Contributions Rate Contributions

2 2 1,800 1 9 1.9987 3,598 2.2457 4,042

2 7 1,800 1 3 1.9987 3,598 2.2457 4,042

3 2 1,800 4 0 1.9987 3,598 2.2457 4,042

3 7 1,800 7 1.9987 3,598 2.2457 4,042

4 2 1,800 6 1.9987 3,598 2.2457 4,042

4 7 1,800 6 1.9987 3,598 2.2457 4,042

5 2 1,800 8 1.9987 3,598 2.2457 4,042
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

20

This appendix includes justification for the investment return assumption used in the actuarial 

projections contained in this report. Justification for the investment return assumption for both 

deterministic and stochastic projections is included. Unless otherwise noted, investment return 

assumptions are net of investment fees.

We note that the assumptions developed in this appendix are individually reasonable and, along with 

other assumptions used in the projection, represent our best estimate of future experience under the 

Plan for the purposes of this measurement, which is a cash flow projection relating to proposed benefit 

suspensions under MPRA. We note that some of the assumptions are related, and a change in one 

assumption may necessitate a change in other assumptions.

Summary

Deterministic Assumption 

A “select and ultimate” investment return assumption is used for purposes of the deterministic projections. 

The “select” period is 10 years. The assumption is shown in the table below.

In other words, net investment returns are assumed to be 6.75% in each of the next 10 years starting 

January 1, 2016 and 7.50% in each year thereafter. 

Stochastic Assumption

A select and ultimate investment return assumption is also used for purposes of the stochastic projections. 

As with the deterministic assumption, the select period is the 10 years starting January 1, 2016. The 

assumption is shown in the table below.

In other words, the stochastic projections assume that the average return in each of the first 10 years will be 

7.19%, with a standard deviation of 11.50%. The projections then assume that the average return in each 

year thereafter will be 8.19%, with a standard deviation of 11.55%. 

The basis for the above assumptions is detailed in the remainder of this Appendix B. The assumptions were 

developed incorporating:

 Final Treasury Regulations implementing MPRA’s provisions regarding benefit suspensions,

 Horizon Actuarial’s 2015 and 2016 Surveys of Capital Market Assumptions,

 The applicable Actuarial Standards of Practice, and

 Our expectations regarding anticipated experience under the Plan.

We believe the above assumptions are individually reasonable, and reasonable in combination with other 

assumptions used in the projections, taking into account the experience of the Plan and reasonable 

Determinstic Assumption Select Ultimate

Expected Geometric Return 6.75% 7.50%

Stochastic Assumption Select Ultimate

Expected Arithmetic Return 7.19% 8.19%

Standard Deviation 11.50% 11.55%
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

21

expectations. We also believe the above assumptions are appropriate for the purposes of the measurement 

and that factors specific to the measurement have been taken into account.

Introduction and Background

Actuarial Standard of Practice No. 27:

Actuarial Standard of Practice No. 27 (“ASOP 27”), Selection of Economic Assumptions for Measuring 

Pension Obligations, provides guidance for the selection of economic assumptions, including the investment 

return assumption, for measuring obligations under defined benefit pension plans. This includes, but is not 

limited to, funding valuations, liability measurements or other actuarial present value calculations, and cash 

flow projections. According to ASOP 27, the actuary should consider relevant data, adverse deviation and 

materiality when selecting an investment return assumption.

According to ASOP 27, a reasonable assumption has the following characteristics:

 Is appropriate for the purpose of the measurement

 Reflects the actuary’s professional judgment

 Takes into account historical and current economic data that is relevant as of the measurement 

date

 Reflects the actuary’s estimate of future experience

 Has no significant bias, except when provisions for adverse deviation are included

Section 3.8 of ASOP 27 provides guidance on selecting an investment return assumption. In developing a 

reasonable assumption, the following factors are to be considered:

 Data – the actuary should review appropriate investment data

 Measurement-Specific Considerations 

o Investment Policy – The actuary should consider the current asset allocation and any 

expected changes to the asset allocation in the future

o Effect of Reinvestment

o Investment Volatility – Plans investing in asset classes characterized by high variability of

returns may be required to liquidate those assets at depressed values to meet benefit 

obligations

o Cash Flow Timing – the timing of expected contributions and benefit payments may 

affect the plan’s liquidity needs and investment opportunities

 Multiple Investment Return Rates – The actuary may assume multiple investment return rates 

instead of a single rate, such as a select and ultimate return assumption.

Other Considerations:

Based on the final regulations implementing MPRA’s provisions regarding benefit suspensions, factors 

specific to the measurements must be taken into account in selecting the assumptions and methods.

The proposed suspension amounts detailed in this application result in a projection where the Plan’s asset 

levels decline during the earlier years of the projection. The assumption for the investment return was 
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

22

developed in a manner that takes into account the anticipated pattern and magnitude of changes in the 

level of the Plan’s assets during the projection period. As a result, a select and ultimate assumption was 

developed instead of an assumption that is based solely on long-term expectations.

Development of the Investment Return Assumption for Deterministic Projections:

As part of this process, we requested future investment return expectations from the Meketa Investment 

Group (“Meketa”), the Plan’s investment consultant. Meketa provided the following information:

1-Year Time Horizon

Arithmetic Mean 9.92%

20-Year Time Horizon

Geometric Mean 8.84%

Standard Deviation 15.90%

For reference, below is the asset allocation as of December 31, 2015 and the target asset allocation of the 

Plan. The allocation range from the investment policy is also shown for each asset class.

Horizon Actuarial’s Survey of Capital Market Assumptions:

Each year, Horizon Actuarial publishes a survey of capital market assumptions. The 2015 Survey of Capital 

Market Assumptions (“the 2015 Survey”) included capital market expectations from 29 different investment 

consultants. The 2016 Survey of Capital Market Assumptions (“the 2016 Survey”) included capital market 

expectations from 35 different investment consultants. Some of these consultants provided both short term 

Asset Allocations Current Target Policy Range

US Equity - Large Cap 7.5% 12.0%

US Equity - Small/Mid Cap 5.6% 6.0%

Non-US Equity - Developed 8.6% 8.0% 3% - 13%

Non-US Equity - Emerging 15.6% 16.0% 11% - 21%

US Corporate Bonds - Core 7.0% 7.0% 2% - 12%

US Corporate Bonds - High Yield 3.7% 2.0% 0% - 7%

Non-US Debt - Emerging 7.4% 8.0% 3% - 13%

US Treasuries (Cash Equivalents) 0.4% 2.0% 0% - 7%

TIPS (Inflation-Protected) 3.6% 5.0% 0% - 10%

Real Estate 5.5% 7.0% 2% - 12%

Hedge Funds 0.1% - 0% - 5%

Commodities 7.3% 7.0% 2% - 12%

Infrastructure 8.1% 5.0% 0% - 10%

Private Equity 19.6% 15.0% 5% - 25%

TOTAL PORTFOLIO 100.0% 100.0%

13% - 23% }
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

23

(10 years) and long term (20 years) assumptions. Generally, investment returns are expected to be lower in 

the short term when compared to the long term.

Based on the results of the 2015 Survey and 2016 Survey, Horizon Actuarial develops a model that will 

estimate the expected returns of a fund, given an asset allocation. We note that there are limitations to the 

model. For more information regarding the limitations of the model, please see the 2015 Survey and the 

2016 Survey at horizonactuarial.com.

When the investment return assumption was initially developed for purposes of this measurement, which is 

a cash flow projection relating to proposed benefit suspensions under MPRA, the analysis was done using 

the results of the 2015 Survey. We have updated the analysis based on the results of the recently published 

2016 Survey. The analysis developed under the 2015 Survey is consistent with the analysis developed under 

the 2016 Survey, with some minor differences. As a result, this appendix includes analysis based on both 

the 2015 Survey and the 2016 Survey.

Using the 2016 Survey and the Fund’s target asset allocation, the following survey averages were taken from 

the 2016 Survey model:

10-Year Time Horizon 20-Year Time Horizon

Arithmetic Mean 8.23% 9.19%

Geometric Mean 7.37% 8.35%

Standard Deviation 13.60% 13.52%

Using the 2015 Survey and the Fund’s target asset allocation, the following survey averages were taken from 

the 2015 Survey model:

10-Year Time Horizon 20-Year Time Horizon

Arithmetic Mean 8.30% 9.02%

Geometric Mean 7.45% 8.18%

Standard Deviation 13.60% 13.52%

The output from the 2015 Survey and the 2016 Survey shows expected returns and risk that are lower than 

the measures provided by Meketa. These differences are due to the limitations of our model mentioned 

above and are explained based on the following additional information provided by Meketa:

 Commodities/Natural Resources: The Plan has 7.3% of its assets invested in natural resources. 

The 2016 Survey does not have natural resources as an asset class. Natural resources are 

grouped in the commodities asset class. The 2016 Survey groups all commodities (agricultural, 

energy, metals, etc.) in the same category and assumes an average expected return of 4.84% 

per year. Specifically, the Plan’s investments in commodities consist of investments in natural 

resources. Meketa assumes an average annual return of 8.40% per year for natural resources. 

This accounts for a difference in expected returns of approximately 25-30 basis points when 

comparing the 2016 Survey with the assumptions provided by Meketa.

 Real Estate: The Plan has 5.5% of its assets invested in real estate. The 2016 Survey groups all 

real estate investments in the same category and assumes an average expected return of 6.75% 
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

24

per year. Specifically, the Plan’s investments in real estate consist of REITs, core real estate and 

value added real estate. Meketa assumes an average annual return of 7.70% per year for the 

specific real estate investments. This accounts for a difference in expected returns of 

approximately 5 basis points when comparing the 2016 Survey with the assumptions provided 

by Meketa.

 Infrastructure: The Plan has 8.1% of its assets invested in infrastructure. The 2016 Survey 

groups all infrastructure investments in the same category and assumes an average expected 

return of 7.12% per year. Specifically, half of the Plan’s investments in infrastructure are in noncore infrastructure investments. Meketa assumes an average annual return of 9.10% per year 

for non-core infrastructure. This accounts for a difference in expected returns of approximately 

8 basis points when comparing the 2016 Survey with the assumptions provided by Meketa.

Based on the information shown above, including the asset allocation, results provided by Meketa, and 

results from the 2015 Survey and the 2016 Survey, an 8.50% investment return is a reasonable assumption 

for purposes of discounting plan liabilities under a minimum funding valuation. This is part of the basis for 

the 8.50% investment return assumption that was used in prior years’ minimum funding valuations, the 

discounting of liabilities, and in the actuarial projection required under Section 3.01 of Revenue Procedure 

2016-27 (certification of critical and declining status). An 8.50% investment return assumption, however, 

may not be appropriate for purposes of a cash flow projection reflecting proposed benefit suspensions 

under MPRA.

Long Term Expectations:

In developing a reasonable long term investment return assumption, we considered various factors 

described earlier in this appendix.

We considered the timing of future expected contributions and benefit payments, which – when taken into 

account – results in the plan having a significant negative cash flow and therefore declining asset levels. This 

Plan is currently projected, even after the proposed benefit suspensions, to have a negative cash flow with 

benefit payments and expenses larger than contributions. This also results in a declining asset value for 

most of the projection period. The assets are projected to increase towards the end of the projection 

period, as the projected 3% annual increases in contribution rates and the decline in benefit payments result 

in a positive cash flow (or a cash flow that is negative, but where the difference is made up by projected 

investment returns).

Under ASOP 27, the actuary should address factors specific to the measurement when selecting the 

investment return assumption. With respect to a plan’s investment policy, the actuary should consider the 

current asset allocation and any expected changes to the asset allocation in the future during the 

measurement period. With respect to a plan’s cash flows, the actuary should consider that the timing of 

expected contributions and benefit payments may affect the plan’s liquidity needs and investment 

opportunities.

Taking into account the Plan’s negative cash flow and declining asset values, the Plan’s asset allocation may 

need to shift to more liquid assets that provide less expected return. This is consistent with the 

Measurement Specific Considerations from ASOP 27 described above. We used the 2016 Survey model to 

illustrate the impact of moving to a more liquid portfolio. 
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

25

The following table shows three different Plan asset allocations. The “Current” allocation is the actual 

allocation for the Plan as of December 31, 2015. The “Target” allocation is the target allocation according to 

the Plan’s investment policy. The “Alternative” allocation (as described in more detail below) represents a 

hypothetical allocation that provides more liquidity with reduced volatility.

Based on discussions with Meketa, if the proposed suspension of benefits is approved, it may be possible for 

the Plan’s assets to remain close to the Target allocations under the current investment policy. Given the 

Plan’s negative cash flows and declining asset values, however, it may be necessary for the Plan’s Trustees 

to adjust the asset allocation in the future to increase liquidity and decrease volatility. Unfavorable 

experience in the near term may accelerate the need for such an adjustment.

The Alternative allocation shown above represents a hypothetical allocation that increases liquidity and 

reduces volatility, while remaining within the permissible ranges under the Plan’s investment policy. The 

allocation increases certain asset classes with higher liquidity (such as fixed income and domestic equity) 

and which reduce overall portfolio volatility (such as TIPs and hedge funds). Similarly, the allocation reduces 

certain asset classes that are less liquid or more volatile (such as emerging markets equity, infrastructure, 

and private equity). Note that as described earlier in this appendix, the allocation to commodities is actually 

an allocation to natural resources.

The following averages from the 2016 Survey were taken from the above model reflecting the Alternative 

allocation (averages from the target allocation are also shown):

Asset Allocations Current Target Alternative

US Equity - Large Cap 7.5% 12.0% 18.0%

US Equity - Small/Mid Cap 5.6% 6.0% 5.0%

Non-US Equity - Developed 8.6% 8.0% 10.0%

Non-US Equity - Emerging 15.6% 16.0% 12.0%

US Corporate Bonds - Core 7.0% 7.0% 12.0%

US Corporate Bonds - High Yield 3.7% 2.0% 7.0%

Non-US Debt - Emerging 7.4% 8.0% 9.0%

US Treasuries (Cash Equivalents) 0.4% 2.0% 6.0%

TIPS (Inflation-Protected) 3.6% 5.0% 6.0%

Real Estate 5.5% 7.0% 4.0%

Hedge Funds 0.1% - 4.0%

Commodities 7.3% 7.0% 2.0%

Infrastructure 8.1% 5.0% -

Private Equity 19.6% 15.0% 5.0%

TOTAL PORTFOLIO 100.0% 100.0% 100.0%
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

26

As shown above, annualized investment returns for the Target allocation are expected to be about 7.4% per 

year (geometric basis) over the next 10 years, and about 8.4% over the next 20 years. Expected returns for 

the Current allocation (not shown) are slightly higher. 

Expected returns for the hypothetical Alternative allocation, however, are significantly lower than for the 

Target Allocation. Specifically, expected annualized returns for the Alternative allocation are about 6.6% 

over the next 10 years and 7.6% over the next 20 years. Note the volatility of the expected returns for the 

Alternative allocation is also considerably lower than under the Target allocation.

Short Term versus Long Term Expectations:

The 2015 Survey and the 2016 Survey include expectations of returns for both the short term (10 years) and 

long term (20 years). Generally, survey respondents expect investment returns to be lower in the short 

term when compared to the long term. Please see the 2015 Survey and 2016 Survey for additional 

information.

The results from the 2016 Survey model, given this Plan’s target allocation, include expected short term 

investment returns (10 years) approximately 1.00% lower than the long term investment returns. The 

results from the 2015 Survey model, given the same target allocation, include short term investment returns 

(10 years) approximately 0.75% lower than the long term investment returns.

The change from a 0.75% difference in the 2015 Survey to the 1.00% difference in the 2016 Survey is due to 

some survey contributors making adjustments to their longer term assumptions and to the addition of a 

new survey respondent that had the most optimistic assumptions. The increase in the long-term 

expectations resulted in a larger spread between short term and long term expectations. We are cautious 

not to over-react to the upward movement for long-term expectations seen in the 2016 Survey, because the 

spread between short term and long term expectations has been approximately 0.75% in the three surveys 

prior to the 2016 Survey.

Based on the above, we believe the investment return assumption should have a short term expectation

that is less than the long term expectation. This is appropriate, because it considers relevant economic data 

in the development of the investment return assumption.

10-Year Horizon Target Alternative

Expected Arithmetic Return 8.23% 7.19%

Expected Geometric Return 7.37% 6.57%

Standard Deviation 13.60% 11.50%

20-Year Horizon Target Alternative

Expected Arithmetic Return 9.19% 8.19%

Expected Geometric Return 8.35% 7.57%

Standard Deviation 13.52% 11.55%
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

27

Investment Return Assumption for Deterministic Projections

The “select and ultimate” investment return assumption used for purposes of the deterministic projections 

is described below. The “select” period is 10 years. 

In other words, net investment returns are assumed to be 6.75% in each of the next 10 years starting 

January 1, 2016 and 7.50% in each year thereafter. This assumption was developed in consideration of the 

expected geometric returns from the 2016 Survey and the 2015 Survey. Geometric returns are annualized 

over a multi-year period and are therefore more appropriate for this purpose than arithmetic returns (which 

are one-year averages).

As described above, according to the average assumptions of the 2016 Survey, expected annualized returns 

for the Target allocation are about 7.4% per year for the next 10 years and about 8.4% per year over the 

next 20 years. While these returns take into account generally lower expectations over the short term, they 

require adjustments for certain factors specific to the Plan. 

Specifically:

 Negative cash flows and declining asset values. The Plan is projected to have a negative cash flow 

after incorporating the proposed benefits suspensions and is projected to have a declining asset 

value during many years in the projection period. As a result, the funded percentage is projected to 

decline for many years before it begins to improve. 

 The materiality of investment returns in the early years of the projection. If a pension plan has a 

negative cash flow, the order of investment returns is important. For example, an investment loss 

followed by an investment gain would have a worse result for the plan than if the gain had preceded 

the loss. Given the Plan’s severely negative cash flow, there is greater materiality of asset returns in 

the early years of the projection. The cash flow projections are sensitive to variations in the asset 

returns in the near term, because the same percentage gain or loss has a greater impact if it occurs 

earlier, when asset levels are higher, than in later years, when asset levels are lower. Because of 

these sensitivities, an adjustment for adverse deviations may be appropriate.

 Possible changes in asset allocation. As described above, the Plan’s asset allocation may need to be 

adjusted to increase liquidity and decrease volatility. Such an adjustment becomes more likely 

following unfavorable experience. Such an adjustment may be more likely as time goes on, both 

due to the longer period over which an unfavorable event may occur and due to the fact that the 

funded percentage is projected to decline before stabilizing. For this reason, more weight was given 

to the expected returns for the Alternative allocation in setting the ultimate rate.

Given the factors above, the expected geometric returns for the Target allocation, based on the average 

assumptions from the 2016 Survey and the 2015 Survey, were adjusted downward, closer to the Alternative 

allocation, and including a small margin for adverse deviation. These downward adjustments were made to 

reflect the possibility that the asset allocation is adjusted to increase liquidity and reduce volatility and to 

reflect the factors described above. These downward adjustments are especially important for a 

Determinstic Assumption Select Ultimate

Expected Geometric Return 6.75% 7.50%
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

28

deterministic projection, which – unlike a stochastic projection – does not consider the possibility of returns 

that vary year by year, or that future experience may be less favorable than the baseline assumption.

We acknowledge that other assumptions may be reasonable, but we believe this assumption is reasonable 

for the purposes of this measurement, which is a cash flow projection including proposed permanent 

benefit suspensions under MPRA. 

Although the assumption does include some margin for adverse deviation, we do not believe that the 

assumption is biased in that it is overly conservative. Based on the 2015 Survey model and the 2016 Survey 

model, the assumption above falls within the range of conservative expected returns and optimistic 

expected returns. Because this is a cash flow projection including proposed benefit suspensions under 

MPRA and not a minimum funding valuation, we believe it is appropriate that the investment return 

assumption include some margin for adverse deviation and be somewhere between the conservative 

assumptions and the average assumptions shown in the 2015 Survey model and the 2016 Survey model.

We understand, however, that including too much margin for adverse deviation may result in benefit 

suspensions that may be deemed to be too large. Because of this, we only considered a moderate margin 

for adverse deviation, knowing that too large a margin may lead to unnecessary benefit suspensions. Based 

on our projection modeling, we estimate that if we were to increase the investment return assumption by 

0.25% for each year in the projection, the proposed benefit suspension amount for inactive participants 

would only change by 1% of the benefit amount before suspension. While we acknowledge that every 

penny of a participant’s benefit is important, we believe this analysis shows that we have not incorporated 

too much adverse deviation such that the assumption is unreasonable for purposes of this measurement. 

We note that the 1% estimated change in the inactive suspension percentage as a result of a 0.25% increase 

in the investment return assumption is less than the one of the threshold amounts used to determine if 

benefit suspensions materially exceed the level necessary to avoid insolvency.

Development of the Investment Return Assumption for Stochastic Projections:

As part of this process, the following information was provided by Meketa:

20-Year Time Horizon

Arithmetic Mean 9.92%

Geometric Mean 8.84%

Standard Deviation 15.90%

Because we adjusted the investment return assumption for the deterministic projections as described 

earlier in this appendix, we believe it is appropriate to use assumptions for stochastic modeling that are 

consistent with the assumptions used for deterministic modeling. We do not necessarily think the 

assumptions provided by Meketa and shown above are unreasonable, rather that the assumptions should 

consider the purposes of this measurement, which is a cash flow projection including proposed benefit 

suspensions under MPRA. Given the purpose of the measurement, we believe it is appropriate to consider 

the expectations of multiple investment consultants, such as those consultants that provided input for the 

2015 Survey and the 2016 Survey, instead of just the Plan’s investment consultant.

A select and ultimate investment return assumption is also used for purposes of the stochastic projections. 

As with the deterministic assumption, the select period is 10 years. Based on the Alternative allocation 
Appendix B: Revenue Procedure 2016-27 Section 4.02

Investment Return Assumption

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.02 of Revenue Procedure 2016-27

29

described earlier in the appendix, the following select and ultimate assumptions were developed from the 

output of the 2016 Survey model:

In other words, the stochastic projections assume that the average return in each of the first 10 years 

year will be 7.19%, with a standard deviation of 11.50%. The projections then assume that the average 

return in each year thereafter will be 8.19%, with a standard deviation of 11.55%. 

Because the stochastic projections use returns that vary randomly in each projection year, the 

assumption was developed based on the arithmetic expected returns from the 2016 Survey. Returns are 

assumed to be normally-distributed and independent from one year to the next. 

Stochastic Assumption Select Ultimate

Expected Arithmetic Return 7.19% 8.19%

Standard Deviation 11.50% 11.55%
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 8
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 4.03 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

This report provides the information required by Section 4.03 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 4.03 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 4.03 of Revenue Procedure 

2016-27. There may be additional information required in the application that will be compiled by the Plan 

administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the Treasury Redacted by the U.S. Department of 

the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 4.03: 

Demonstration that Proposed Suspension Satisfies the Statutory Requirements

Summary 1

Plan-year-by-plan-year projection of available resources 2

Stochastic projection 3
Revenue Procedure 2016-27 Section 4.03: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

1

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

necessary to avoid insolvency

Under Section 4.03 of Revenue Procedure 2016-27, the application must include a demonstration that, 

in accordance with Section 432(e)(9)(D)(iv) of the Code, the proposed benefit suspension is reasonably 

estimated to not materially exceed the level necessary to enable the plan to avoid insolvency. For this 

purpose, the assumptions used must be the same as those used for the purposes of Section 4.02 of 

Revenue Procedure 2016-27. The demonstration must include an illustration, prepared on a 

deterministic basis, of the Plan’s available resources and solvency ratio as described in Section 4.02(1) of 

Revenue Procedure 2016-27 (and if applicable to the Plan, an illustration of the probability that the Plan 

will avoid insolvency prepared using stochastic projections, as described in Section 4.02(2) of Revenue 

Procedure 2016-27) showing that the proposed suspension would not reasonably be estimated to 

enable the plan to avoid insolvency if the dollar amount of the proposed suspension for each participant 

and beneficiary were reduced (but not below zero) by the greater of:

1. Five percent of the reduction in the periodic payment proposed for that participant or 

beneficiary; or

2. Two percent of the participant’s or beneficiary’s periodic payment determined without regard 

to the reduction proposed in the application. 

On the following pages, we have included:

 A plan-year-by-plan-year deterministic projection of the available resources as defined in 

Section 418E(b)(3) of the Code and the benefits under the plan. 

 A stochastic projection with 5,000 simulations of investment returns over the extended 

period. 

The deterministic projection is based on the same assumptions as the projection under Section 4.02(1) 

of Revenue Procedure 2016-27 but is based on proposed suspension amounts that are reduced (as 

described above) from the suspensions proposed in this report. Note that the results of the 

deterministic projection show that the Plan, with the reduced proposed benefit suspensions, is not 

estimated to avoid insolvency. Specifically:

 The Plan is projected to become insolvent during the Plan Year ending December 31, 2044.

The stochastic projection includes the same detail and is based on the same assumptions as the 

projection under Section 4.02(2) of Revenue Procedure 2016-27 but is based on proposed suspension 

amounts that are reduced (as described above) from the suspensions proposed in this report. 

Because the Plan, with suspension amounts reduced (as described above) from the suspensions 

proposed in this report, is not projected to meet the requirements of Sections 4.02(1) and 4.02(2) of 

Revenue Procedure 2016-27, the requirements under Section 4.03 of Revenue Procedure 2016-27 are 

met. 
Revenue Procedure 2016-27 Section 4.03: Demonstration that Proposed Suspension Satisfies the 

Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

2

Plan-year-by-plan-year projection of the available resources:

Revenue Procedure 2016-27, Section 4.03: The Proposed Benefit Suspension is Reasonably Estimated to Not Materially Exceed the Level Necessary to Avoid Insolvency

Deterministic Projection

Assumed Investment Return 6.75% for 10 years, 7.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Note: The suspensions above are reduced by max of 5% of suspension amount and 2% of benefit prior to suspension

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 86,524,274 1,157,047,661 3,311,681,836 37.62% 1,445,297,878 5.014

1 12/31/2017 1,157,047,661 121,451,426 9,586,913 (263,023,336) (9,853,710) 73,313,661 1,088,522,616 3,306,369,346 34.99% 1,351,545,951 5.139

2 12/31/2018 1,088,522,616 125,299,440 9,570,693 (237,585,623) (7,136,955) 69,767,757 1,048,437,928 2,640,306,243 41.23% 1,286,023,551 5.413

3 12/31/2019 1,048,437,928 129,104,157 9,497,851 (239,854,317) (7,235,993) 67,108,080 1,007,057,706 2,630,326,005 39.86% 1,246,912,023 5.199

4 12/31/2020 1,007,057,706 132,915,501 9,497,851 (242,257,365) (6,815,865) 64,376,624 964,774,452 2,618,409,379 38.46% 1,207,031,817 4.982

5 12/31/2021 964,774,452 136,794,009 9,497,851 (245,034,884) (6,918,030) 61,556,215 920,669,612 2,602,125,118 37.08% 1,165,704,497 4.757

6 12/31/2022 920,669,612 140,066,105 9,497,851 (247,442,235) (7,022,280) 58,604,805 874,373,859 2,581,764,241 35.66% 1,121,816,094 4.534

7 12/31/2023 874,373,859 143,397,886 9,497,851 (249,458,739) (7,127,573) 55,520,679 826,203,962 2,557,333,760 34.19% 1,075,662,702 4.312

8 12/31/2024 826,203,962 146,856,501 9,497,851 (250,898,161) (7,234,950) 52,333,734 776,758,937 2,528,861,916 32.67% 1,027,657,099 4.096

9 12/31/2025 776,758,937 150,470,329 9,497,851 (251,802,111) (7,343,370) 49,083,994 726,665,629 2,496,573,787 31.11% 978,467,741 3.886

1 0 12/31/2026 726,665,629 154,187,423 9,497,851 (251,784,327) (7,453,875) 50,916,687 682,029,388 2,459,667,691 29.54% 933,813,715 3.709

1 1 12/31/2027 682,029,388 157,989,023 9,497,851 (251,310,983) (7,565,423) 47,725,097 638,364,954 2,420,767,015 28.17% 889,675,936 3.540

1 2 12/31/2028 638,364,954 161,966,559 9,497,851 (250,104,605) (7,679,055) 44,640,400 596,686,103 2,379,058,613 26.83% 846,790,708 3.386

1 3 12/31/2029 596,686,103 166,030,497 9,475,797 (248,424,935) (7,793,730) 41,724,744 557,698,475 2,334,038,021 25.56% 806,123,410 3.245

1 4 12/31/2030 557,698,475 170,270,698 9,425,111 (246,827,113) (7,910,490) 39,013,318 521,669,999 2,287,974,105 24.38% 768,497,112 3.114

1 5 12/31/2031 521,669,999 169,563,680 9,251,903 (244,737,028) (8,029,335) 36,352,096 484,071,316 2,239,543,254 23.29% 728,808,344 2.978

1 6 12/31/2032 484,071,316 168,862,638 8,949,319 (242,506,710) (8,150,265) 33,573,661 444,799,960 2,189,245,391 22.11% 687,306,669 2.834

1 7 12/31/2033 444,799,960 168,190,146 8,949,319 (238,860,958) (8,272,238) 30,735,232 405,541,461 2,137,124,693 20.81% 644,402,420 2.698

1 8 12/31/2034 405,541,461 167,514,392 4,474,660 (234,880,042) (8,396,295) 27,742,336 361,996,513 2,084,522,137 19.45% 596,876,554 2.541

1 9 12/31/2035 361,996,513 166,887,631 - (230,675,079) (8,522,438) 24,438,118 314,124,746 2,031,763,571 17.82% 544,799,825 2.362

2 0 12/31/2036 314,124,746 166,266,861 - (225,764,323) (8,650,665) 21,003,801 266,980,420 1,979,085,238 15.87% 492,744,743 2.183

2 1 12/31/2037 266,980,420 165,712,716 - (219,974,808) (8,779,935) 17,659,455 221,597,847 1,927,247,420 13.85% 441,572,655 2.007

2 2 12/31/2038 221,597,847 165,172,640 - (213,897,532) (8,911,290) 14,458,482 178,420,147 1,877,255,828 11.80% 392,317,679 1.834

2 3 12/31/2039 178,420,147 164,651,382 - (207,456,351) (9,044,730) 11,437,147 138,007,594 1,829,583,290 9.75% 345,463,946 1.665

2 4 12/31/2040 138,007,594 164,117,484 - (201,213,931) (9,180,255) 8,615,193 100,346,086 1,784,822,442 7.73% 301,560,017 1.499

2 5 12/31/2041 100,346,086 163,535,462 - (194,400,045) (9,317,865) 6,019,115 66,182,753 1,743,026,799 5.76% 260,582,798 1.340

2 6 12/31/2042 66,182,753 163,004,478 - (187,687,715) (9,457,560) 3,683,427 35,725,384 1,705,059,110 3.88% 223,413,098 1.190

2 7 12/31/2043 35,725,384 162,491,114 - (180,813,851) (9,599,340) 1,632,326 9,435,632 1,671,152,507 2.14% 190,249,483 1.052

2 8 12/31/2044 9,435,632 161,975,665 - (173,533,454) (9,743,205) (91,115) INSOLVENT 1,641,833,666 0.57% 161,576,977 0.931

"CY" = current plan year
Revenue Procedure 2016-27 Section 4.03: Demonstration that Proposed 

Suspension Satisfies the Statutory Requirements

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 4.03 of Revenue Procedure 2016-27

3

Stochastic Projection:

In the following exhibits, we have included a stochastic projection with 5,000 simulations of 

investment returns over the extended period. 

Stochastic Illustration:

The stochastic projection below is based on the following assumptions, as described in the assumptions 

for the actuarial projection required under Section 3.02 of Revenue Procedure 2016-27:

The probability of avoiding insolvency throughout the extended period is 45%.

Stochastic Assumption Select Ultimate

Expected Arithmetic Return 7.19% 8.19%

Standard Deviation 11.50% 11.55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2017

40%

38%

38%

37%

31%

38%

2%

100%

2019

53%

45%

42%

38%

26%

41%

5%

100%

2021

62%

45%

38%

32%

17%

38%

10%

100%

2023

74%

44%

34%

26%

8%

36%

14%

100%

2025

85%

44%

31%

20%

0%

33%

18%

99%

2027

98%

43%

27%

13%

0%

31%

23%

94%

2029

117%

44%

24%

7%

0%

29%

28%

85%

2031

143%

46%

21%

1%

0%

30%

33%

76%

2033

174%

48%

17%

0%

0%

31%

40%

68%

2035

207%

51%

13%

0%

0%

34%

48%

61%

2037

256%

55%

7%

0%

0%

37%

58%

55%

2039

309%

59%

2%

0%

0%

42%

71%

51%

2041

399%

65%

0%

0%

0%

49%

87%

48%

2043

492%

74%

0%

0%

0%

57%

106%

46%

2045

607%

84%

0%

0%

0%

68%

129%

45%

2047

737%

96%

0%

0%

0%

80%

157%

45%

2049

888%

111%

0%

0%

0%

94%

188%

45% Probability Funded Percentage

Funded Percentage

Prob > 0% 1st - 25th percentile 25th - 50th percentile 50th - 75th percentile 75th - 99th percentile

Revenue Procedure 2016-27 Calculations

As of 1/1

99th %

75th %

50th %

25th %

1st %

Mean

Std Dev

Prob > 0%

Revenue Procedure 2016-27 Calculations
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 9
Classification 

Participant 

Beneficiary 

Alternate Payee 

Total 

Classification 

Participant 

Beneficiary 

Alternate Payee 

Total 

Classification 

Participant 

Beneficiary 

Alternate Payee 

Total 

Application Section 4.04(1)(a) - Demonstration that the Proposed Benefit Suspension is Distributed Equally 

Count 

31096 

2743 

790 

34629 

Count 

8594 

0 

98 

8692 

Count 

22502 

2743 

692 

25937 

Section 4.04(1)(a) - Plan Aggregate 

Average Monthly Benefit Before Average Monthly Benefit After 

Suspension 

$1,285.73 

$663.97 

$721.90 

Section 4.04(1)(a)- Active 

Suspension 

$1,007.88 

$578.39 

$617.54 

Average Monthly Benefit Before Average Monthly Benefit After 

Suspension 

$1,330.81 

$0.00 

$919.95 

Section 4.04(1)(a) - Non-Active 

Suspension 

$1,073.35 

$0.00 

$795.52 

Average Monthly Benefit Before Average Monthly Benefit After 

Suspension 

$1,268.51 

$663.97 

$721.90 

Suspension 

$982.87 

$578.39 

$617.54 
Information Required by Section 

4.04(1 )(a) of Revenue Procedure 

2016-27 for Benefit Suspensions 

Effective .July 1, 2017 

August 31, 2016 

Actuarial Services, LLC 
Actuarial Statement 

This report provides the information required by Section 4.04(1)(a) of Revenue Procedure 2016-27: 

Application Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit 

Pension Plans under § 432(e)(9). This information is applicable to the New York State Teamsters 

Conference Pension and Retirement Fund (the "Plan") assuming an effective date for benefit suspensions 

as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code ("Code"), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 4.04(1)(a) of Revenue Procedure 2016-

27, we have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that this report includes only the actuarial information required by Section 4.04(1)(a) of Revenue 

Procedure 2016-27. There may be additional information required in the application that will be compiled 

by the Plan administrator and/or other persons or organizations designated by the Board of Trustees. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 ("ERISA"), as 

amended by the Pension Protection Act of 2006 ("PPA"), the Pension Relief Act of 2010 ("PRA 2010"), and 

the Multiemployer Pension Reform Act of 2014 ("MPRA"). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Jzi es M. Locey, EA, Za; 

onsulting Actuary 

Stanley 7 Goldfarb, FSA, EA, MAAA 

Actuary and Managing Consultant 

New York State Teamsters Conference Pension and Retirement Fund 

Information Required by Section 4.04(1)(a) of Revenue Procedure 2016-27 I I onzon 

Redacted by the U.S. Department of the 

Treasury

Redacted by the U.S. Department of 

the Treasury
Table of Contents 

Revenue Procedure 2016-27 Section 4.04(1}(a): 

Demonstration that Proposed Benefit Suspension is Distributed Equitably 

Summary 

New York State Teamsters Conference Pension and Retirement Fund 

Information Required by Section 4.04(1)(a) of Revenue Procedure 2016-27 

Page 

1 

~ lonzon 
Revenue Procedure 2016-27 Section 4.04(1 )(a): Demonstration that 

Proposed Benefit Suspension is Distributed Equitably 

Demonstration that the proposed benefit suspension is distributed equitably 

Under Section 4.04(1)(a) of Revenue Procedure 2016-27, the application must include a demonstration 

that, in accordance with Section 432(e)(9)(D)(vi) of the Code, the proposed benefit suspension is 

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

For the Plan in the aggregate, the application must include the aggregate present value of the reduction 

in benefits for all individuals. lfthe proposed suspension provides for different treatment for different 

categories or groups (other than as a result of application of the individual limitations), the application 

must include the aggregate present value of the reduction in benefits for each category or group. 

The table below shows the aggregate present value of the reduction in benefits for all individuals and 

for the two categories of participants subject to the proposed suspensions. 

Category Present Value of Reduction in Benefits 

Active $129,869,017 

Non-Active $586,916,185 

Total $716,785,202 

Please note the following: 

• The present values shown in the table above are as of July 1, 2017 and are based on census 

data as of January 1, 2016. 

• The present values shown in the table above are based on the same assumptions used in the 

actuarial projection required under Section 3.02 of Revenue Procedure 2016-27. Please refer 

to the actuarial projection under Section 3.02 of Revenue Procedure 2016-27 for more 

information regarding the assumptions. 

Note that this projection, by itseft does not satisfy all the requirements of Section 4.04{1){a) of 

Revenue Procedure 2016-27. The additional required information is included in the application. 

New York State Teamsters Conference Pension and Retirement Fund 

Information Required by Section 4.04(1)(a) of Revenue Procedure 2016-27 

1 

.-llonzon 
Application Section 4.04(1)(b)- Demonstration that the Proposed Benefit Suspension is Distributed Equally 

Section 4.04(1)(b) - Plan Aggregate 

Reduction 

No Reduction 

0-10.00% 

10.01-20.00% 

20.01-30.00% 

30.01-40.00% 

40.01-50.00% 

50.01-60.00% 

Total 

Reduction 

No Reduction 

0-10.00% 

10.01-20.00% 

20.01-30.00% 

30.01-40.00% 

40.01-50.00% 

50.01-60.00% 

Total 

Section 4.04(1)(b) - Active 

Section 4.04(1)(b) - Non-Active Participants 

Reduction 

No Reduction 

0-10.00% 

10.01-20.00% 

20.01-30.00% 

30.01-40.00% 

40.01-50.00% 

50.01-60.00% 

Total 

Count 

9,750 

6,348 

8,364 

1,547 

8,608 

10 

2 

34,629 

Count 

1,044 

1,328 

6,265 

54 

0 

0 

0 

8,691 

Count 

8,706 

5,020 

2,099 

1,493 

8,608 

10 

2 

25,938 

Percent 

28.16% 

18.33% 

24.15% 

4.47% 

24.86% 

0.02% 

0.01% 

100.00% 

Percent 

12.01% 

15.28% 

72.09% 

0.62% 

0.00% 

0.00% 

0.00% 

100.00% 

Percent 

33.56% 

19.35% 

8.09% 

5.76% 

33.19% 

0.04% 

0.01% 

100.00% 
The New York State Teamsters Conference Pension and Retirement Fund 

Application for Suspension of Benefits under MPRA 

EXHIBIT 10 

DB1/ 88552986.1 DB1/ 88552986.1 

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 10
Section 4.05(4)(a) - List of Contributing Employers

New York State Teamsters Conference Pension & Retirement Fund

Employer

UNITED PARCEL SERVICE

ABF FREIGHT SYSTEM INC

H P HOOD, LLC

POLLIO DAIRY PRODUCTS CORP/

SYSCO FOOD SERVICES-ALBANY

YRC FREIGHT

UPSTATE NIAGARA COOPERATIVE,IN

HIGH FALLS BREWING COMPANY LLC

EMPIRE MERCHANTS NORTH LLC

SAPUTO DAIRY FOODS, USA

N Y STATE TEAMSTERS COUNCIL

HANSON AGGREGATES NY LLC

NEW PENN MOTOR EXPRESS INC

PALLETTE STONE CORP

BARR TRANSPORTATION CORP

MANITOU CONSTRUCTION CO INC

CALLANAN INDUSTRIES INC

ALLIED WASTE SERVICES OF NORTH

USF HOLLAND INC

LAKE BEVERAGE CORPORATION

DOMINE BUILDERS SUPPLY

TEAMSTERS LOCAL UNION NO 294

ABC SUPPLY CO. INC.

GRAYMONT MATERIALS (NY) INC

CANADA DRY-HACKENSACK/SOUTH PLAINFIELD

CLEMENTE LATHAM CONCRETE CORP./NORTH

STADIUM INTERNATIONAL TRUCKS

TEAMSTERS LOCAL UNION NO 317

MATT BREWING COMPANY

LINDE GAS USA LLC

BONDED CONCRETE INC/NORTH/SOUTH

TEAMSTERS LOCAL UNION NO 264

QUALITY CARRIERS, INC.

SAUNDERS CONCRETE CO INC

CUSHING STONE COMPANY INC.

JAMES DESIDERIO INC

GRANDVIEW CONCRETE CORP

DAIRY FARMERS OF AMERICA

SHAW ENVIRONMENTAL, INC.

TEAMSTERS LOCAL UNION NO 449

COCA COLA BOTTLING CO OF

TEAMSTERS LOCAL UNION NO 118

FIRST TRANSIT, INC.
CRANESVILLE AGGREGATES CO/BLOCK/MIX/MIRON

STAPLES BUSINESS ADVANTAGE

COYNE INTERNATIONAL ENTER CORP

KEELER CONSTRUCTION CO INC

JAMES H MALOY INC

TEAMSTERS LOCAL UNION NO 687

C & M FORWARDING CO INC

LARNED TRUCKING

B. GIAMBRONE & COMPANY, INC.

ELDERLEE, INC.

COPE BESTWAY EXPRESS INC.

ALBANY CONCRETE CO

AIRBORNE FREIGHT CORPORATION

WILLIAM B MORSE LUMBER CO

JOINTA GALUSHA LLC

G & T AIR EXPEDITING SERVICE

VAN AUKEN EXPRESS INC

PARSONS CONSTRUCTORS INC

NEWPORT NEWS SHIPBUILDING

RIFENBURG CONTRACTING CORP.

PENSKE TRUCK LEASING CO LP

WELCH HOLME & CLARK CO, INC.

QUALA SYSTEMS INC

BINGHAMTON GREENE TRUCK LINES

SAFEWAY TRUCKING CORP

BIMBO BAKERIES USA, INC.

AUGUST BOHL CONTRACTING CO.

SYRACUSE BANANA COMPANY

INTERNATIONAL CHIMNEY

BOULTER INDUSTRIAL CONTRACTORS

NYS BUILDING TRADES COUNCIL

J A CARMAN TRUCKING CO INC

BATTENFELD-AMERICAN, INC.

SAM-SON DISTRIBUTION CENTER IN

J H WATTLES INC

ECONOMY PAVING COMPANY INC

PENNZOIL-QUAKER STATE CO D/B/A

BOROUGH OF TOWANDA

ALBANY AREA TRUCKING & ALLIED

MAPLETON AG TRANSPORT

PERRAS-ENVIRONMENTAL

CROSSETT INC

W J W LOGISTICS SERVICE INC

BOROUGH OF WELLSBORO

TEAMSTERS LOCAL UNION NO 529

MID-STATE RACEWAY, INC.

STRATE WELDING SUPPLY CO INC
PECKHAM MATERIALS CORP

TEAMSTERS LOCAL UNION NO 560/

ROBERT H. LAW, INC.

UCC CONSTRUCTORS INC

RICHMOND TOWNSHIP

FLETCHER GRAVEL COMPANY INC

MURZAK ENTERPRISES, INC.

BURT CRANE & RIGGING

WM J. KELLER & SONS CONST CORP

WECKESSER BRICK COMPANY INC

KELLOGG SALES COMPANY D/B/A

THE L C WHITFORD COMPANY INC

MIDWWEST STEEL, INC

RIDGEWAY TRUCKING CORP

MATTHEWS & FIELDS LUMB CO INC

STONE & WEBSTER CONSTRUCTION

BOROUGH OF WESTFIELD

THEATRICAL TEAMSTERS

JONES MOTOR COMPANY INC

BOROUGH OF MANSFIELD

GEORGE C MILLER BRICK

DAGOSTINO BUILDING BLOCKS

BENLIN DISTRIBUTION SVCS INC

SCRANTON'S THRUWAY BUILDERS

CORTLAND READY MIX INC

NIAGARA FRONTIER FOOD TERM INC

WNYCOSH

SEVENSON ENVIRONMENTAL

OTIS EASTERN SERVICE, LLC

ST. LAWRENCE INDUSTRIAL

ASSOCIATED TEXTILE RENTAL SER

NORLITE CORP

GLENS FALLS READY MIX

BOROUGH OF ELKLAND

CITY OF JAMESTOWN BOARD OF

WHITACRE ENGINEERING CO

IROQUOIS ROCK PRODUCTS INC

ESCRO TRANSPORT LTD

FULTON-OSWEGO MOTOR EXPRESS

SEALAND CONTRACTORS

D.A. COLLINS CONSTRUCTION

SYRACUSE TEACHERS ASSOCIATION

JACKSON TOWNSHIP

THE DE PERNO FIRM PC

FOREST MATERIALS INC.

R & J KERR, INC.

EMPIRE WAREHOUSE LLC
CAMPOBELLO CONSTRUCTION CO INC

TRANSERVICE LOGISTICS, INC.

O'BRIEN & GERE INC. OF

JOSEPH A CIMINO FOOD BRKRS INC

F&R UNLIMITED, LLC

KJJ INDUSTRIES, LLC

MALLEY TRUCKING INC

CLOVER LEAF NURSERIES, INC

PRECISION PIPELINE

ALDRIDGE ELECTRIC, INC.

SMITH PACKING COMPANY INC

FORT EDWARD EXPRESS CO INC

DONNELLY CONSTRUCTION, INC

ROBISON & SMITH OF POTSDAM INC

GRIMM BUILDING MATERIALS CO

UTILITY LINE SERVICES

TROY SAND & GRAVEL CO INC

BARNARD/DA COLLINS JV

IRON WORKERS UNION LOCAL 12

JOSEPH R WUNDERLICH INC

ALBANY ASPHALT & AGGREGATES

ROTONDO TRUCKING & WAREHOUSING

C D PERRY & SONS INC

COEYMANS LANDING MARINE SERVIC

CATSKILL CONCRETE COMPANY

NORTHEAST CONTRACTORS, INC

THRUWAY BLDRS OF ORCHARD PARK

YANK WASTE CO., INC.

LEN J CONSTRUCTION, LLC

ADAMS EXPRESS INC.

COMMUNICATIONS WORKERS

SOUTHLAND RENDA JV

DANKO DEVELOPMENT

JOEY'S BROKERAGE

ROCHESTER AREA CONSTRUCTION &

B & S TRUCKING

C.P. WARD, INC

RUSSO PRODUCE CO INC

NORTHERN CLEARING, INC.

MINNESOTA LIMITED LLC

YRC FREIGHT

NEW PENN MOTOR EXPRESS INC

USF HOLLAND INC

Left Fund in 2015
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 11
DB1/ 88553035.7

BALLOT

ON THE PROPOSED SUSPENSION OF BENEFITS FOR THE

NEW YORK STATE TEAMSTERS CONFERENCE PENSION AND

RETIREMENT FUND

On [DATE], 2016, the Board of Trustees (“Trustees”) of the New York State Teamsters

Conference Pension and Retirement Fund (“Plan”) mailed to you a Notice of Proposed

Suspension of Your Pension Benefits (“Notice”). The Notice advised you that the Trustees

submitted an application for approval of a suspension of benefits (“Application”) under the Plan

to the U.S. Department of the Treasury (“Treasury”) on August 31, 2016. The purpose of the

application was to obtain Treasury’s approval of the Trustees’ Pension Preservation Plan

(“PPP”), which sets forth the details of the proposed suspension of benefits.

The Notice explained that if Treasury approved the Plan's Application, Active Participants and

Non-Active Participants (which includes retirees, terminated vested participants, and

beneficiaries of deceased participants) would be given the opportunity to vote on whether the

benefit suspensions should go into effect. On [DATE], Treasury approved the Plan's

application to suspend benefits.

This ballot is designed to assist you in deciding whether to vote to approve the PPP and

proposed benefit suspensions. Please carefully read the information below before casting

your vote. The information below should be considered when deciding whether to vote for or

against the suspensions.

The Plan’s Statement in Support

The Board of Trustees has developed the PPP in an effort to save the Plan. The PPP requires the

Trustees to reduce pension benefits to prevent the Plan from becoming insolvent (i.e. running out

of money). This is a difficult, but necessary action. The Trustees support the proposed

suspension, because under the PPP you will receive a larger benefit than you would if the Plan

becomes insolvent. Although the exact date is unknown, unless the proposed suspension takes

effect, the Plan is projected to become insolvent in 2026. If the Plan becomes insolvent, it is

possible that you will not receive your pension. Other pension plans are in similar or worse

shape. For some plans, it is too late, and they cannot be saved. Others will have to cut benefits

to the maximum amount allowed under the law. By proactively adopting the PPP and reducing

pension benefits now rather than waiting until it is too late, the Trustees can still save your

pension without reducing pension benefits by the maximum amount. Without the suspensions

proposed in the PPP, the Plan’s financial condition is projected to deteriorate to where it is

beyond repair.

In addition, the Pension Benefit Guaranty Corporation (“PBGC"), which subsidizes the benefits

of insolvent pension plans, might also run out of money in the near future if this Plan and other

plans become insolvent. The PBGC has estimated that its Multiemployer Program’s financial

resources will be exhausted within ten years, which means the PBGC could become insolvent

before the Plan does. If both the Plan and the PBGC become insolvent, your pension benefits
DB1/ 88553035.7 2

could be reduced to almost zero. It is important to understand that if the Plan becomes insolvent,

there is little to no possibility of the benefit suspensions being reinstated or future accruals

increasing.

Please know that the PPP reduces pension benefits by the minimum amount necessary to

keep the Plan solvent. If the PPP is approved, the Plan is projected to remain solvent and

able to pay benefits into the future. For the sake of preserving retirement security for all

Plan participants, we urge you to vote to approve the benefit suspensions.

Description of the Proposed Benefit Suspensions

The Board of Trustees proposes the following suspension of benefits. All Active Participants (as

defined below) will have their accrued monthly benefits as of June 30, 2017 reduced by 20%.

All Non-Active Participants (as defined below) will have their accrued monthly benefits as of

June 30, 2017 reduced by 31%.

An Active Participant is an individual who (1) has not retired and entered pay status as of July 1,

2017 and (2) had at least 500 hours of employer contributions submitted to the Plan on their

behalf in the 2015 Plan Year, in the 2016 Plan Year, or in the 2017 Plan Year prior to July 1,

2017. All other Plan participants who do not meet the definition of Active Participant on July 1,

2017, including retirees, beneficiaries, and terminated vested participants, are considered NonActive Participants.

The formula used to determine the amount of the proposed suspension for Active Participants is

based on the 20% suspension percentage being applied to each Active Participant’s accrued

monthly benefit as of June 30, 2017. For example, an Active Participant who has an accrued

monthly benefit as of June 30, 2017 equal to a $3,500 monthly benefit at retirement, would have

their $3,500 benefit multiplied by the suspension percentage, which is 20%. The amount of

suspension ($700) is subtracted from $3,500, as follows:

A. Projected Pre-Suspension Accrued Monthly Benefit: $3,500

B. Suspension Percentage: 20%

C. Amount of Suspension (A x B): $700

D. Final Post-Suspension Benefit (A – C): $2,800

Note that if you work after July 1, 2017, you will continue to accrue benefits at the rate set forth

in your employer’s Rehabilitation Plan Schedule. Benefits accrued after July 1, 2017 will not be

suspended.

The formula used to determine the amount of the proposed suspension for all Non-Active

Participants is based on the 31% suspension percentage being applied to each Non-Active

Participant’s accrued monthly benefit as of June 30, 2017. For example, a Non-Active

Participant, such as a retiree, who is receiving an accrued monthly benefit of $2,000 per month

as of June 30, 2017, would have their $2,000 monthly benefit multiplied by the suspension

percentage, which is 31%. The amount of suspension ($620) is subtracted from $2,000, as

follows:
DB1/ 88553035.7 3

A. Projected Pre-Suspension Accrued Monthly Benefit: $2,000

B. Suspension Percentage: 31%

C. Amount of Suspension (A x B): $620

D. Final Post-Suspension Benefit (A – C): $1,380

A Non-Active Participant, such as a terminated vested, who is not yet in pay status but who is

projected to receive a $2,000 monthly benefit based on their accrued monthly benefit as of June

30, 2017 would have the same 31% suspension applied in accordance with the above formula.

Factors Taken into Account in Designing the Benefit Suspensions

In designing the benefit suspensions, the Trustees considered the following factors:

 Accelerating employer withdrawals from the Plan and increasing the risk of additional

benefit reductions for participants in and out of pay status;

 Negative reaction by Active Participants that would further prompt withdrawals of Active

Participant groups and contributing employers, and Active Participants reasonably likely

to withdraw support for the Application;

 History of benefit reductions for Active Participants;

 Amount of benefit;

 Discrepancies/relative benefits as between Active Participants and Non-Active

Participants, including subsidized benefits; and

 Differences in historical employer contribution rates/increases as between Active

Participants and Non-Active Participants.

Term of Suspensions

The proposed suspension will remain in effect indefinitely.

Plan Insolvency

The Trustees have determined that the Plan will become insolvent unless the proposed

suspensions take effect. The Plan actuary has certified that if the suspensions do not take effect,

the Plan will become insolvent in the year 2026. The determination of the exact date of

insolvency is based on actuarial assumptions and experience that is subject to some uncertainty.

Plan Benefits if the Plan Becomes Insolvent

If the Plan becomes insolvent, the PBGC will help pay pension benefits up to a certain

guaranteed amount. However, your pension is likely to be lower than what you would receive

under the PPP. That is because under the PPP, the proposed suspensions result in pension

benefits that are higher than those guaranteed by the PBGC.

The calculation of the PBGC guaranty is complicated, as it considers both the years of service

that have been worked and the rate of benefit accrual the Plan has credited. The maximum

monthly benefit the PBGC will guarantee is $35.75 for each year of service that has been earned.
DB1/ 88553035.7 4

Thus, for a participant with 30 years of service, the maximum PBGC guarantee is $1,072.50 per

month.

PBGC Insolvency

If the PBGC becomes insolvent, your pension will be lower than what would otherwise be paid if

the Plan became insolvent. In fact, if the Plan and PBGC both become insolvent, it is possible

that you will not receive any pension at all.

Plan is Projected to Avoid Insolvency if Benefit Suspensions are Implemented

The Plan’s actuary has certified that the proposed suspensions are projected to avoid the Plan’s

insolvency. This projection requires the use of certain assumptions, and the projection is subject

to some uncertainty.

Treasury’s Approval of the Proposed Pension Preservation Plan

The proposed suspensions in the PPP have already been approved by Treasury, in consultation

with the PBGC and the Secretary of Labor.

Failing to Vote

The suspension will go into effect unless a majority of all eligible voters vote to reject the

suspension and therefore a failure to vote has the same effect on the outcome of the vote as a

vote in favor of the suspension.

 I approve the suspension of benefits.

 I reject the suspension of benefits.

Signed:__________________________ Name (Printed): ___________________

Date: ___________________
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 12
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 6.03 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

This report provides the information required by Section 6.03 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 6.03 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

Note that the information required by Section 6.03 of Revenue Procedure 2016-27 is not actuarial in 

nature. As such, this report does not include any actuarial information, just a summary of historical data. 

There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, LLC that 

affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the 

Treasury Redacted by the U.S. Department of the 

Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 6.03: 

Other Required Information

Ten-year experience for certain critical assumptions 1
Revenue Procedure 2016-27 Section 6.03: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

1

Ten-year experience for certain critical assumptions

Under section 6.03 of Revenue Procedure 2016-27, the application must include experience regarding 

certain critical assumptions. With respect to each of the 10 plan years immediately preceding the plan 

year in which the application is submitted, Section 6.03 of Revenue Procedure 2016-27 requires a 

disclosure that separately identifies:

1. Total contributions

2. Total contribution base units

3. Average contribution rates

4. Withdrawal liability payments

5. Rate of return on plan assets

Since the drop in contribution base units (hours) associated with the financial crisis in 2008 and 2009, 

hours have remained steady or slightly declined from 2010 through 2015.

Note that the drop in contribution base units from the 2013 to 2014 plan year is primarily due to the 

withdrawal of employers who are currently making withdrawal liability payments or have satisfied their 

withdrawal liability obligation in full. The Trustees believe that the downward trend in contribution base 

units will not continue, as the withdrawals in 2013 to 2014 were specific, one-time events unlikely to be 

repeated. Specifically, these withdrawn employers accounted for approximately 2.5 to 3.0 million hours 

in the 2010 through 2013 years. Factoring out the hours for these withdrawn employers in 2010 

through 2013 will result in a steady pattern of hours for the period between 2010 and 2015.

The Trustees are confident that the economic certainty provided to employers under the application to 

suspend benefits with respect to their future contribution obligations will provide employers with an 

incentive to remain in the Plan. Likewise, the application to suspend benefits and other 

communications with Active Participants have shown them that there is long-term hope for the Plan, 

and it is to their economic advantage to remain Participants.

Revenue Procedure 2016-27, Section 6.03: Ten-year Experience for Certain Critical Assumptions

Total Average Rate of 

Plan Year Total Contribution Contribution Withdrawal Liability Return on

Ending Contributions Base Units Rate Payments Plan Assets

12/31/2015 $ 115,286,154 14,956,634 $ 7.71 $ 19,482,803 -0.74%

12/31/2014 108,586,434 15,059,998 7.21 16,663,889 6.05%

12/31/2013 108,206,048 17,669,701 6.12 13,706,316 8.50%

12/31/2012 101,196,818 17,049,078 5.94 17,820,004 14.40%

12/31/2011 92,564,876 17,572,053 5.27 15,389,206 1.78%

12/31/2010 84,188,914 17,960,860 4.69 2,346,687 13.00%

12/31/2009 85,925,231 19,672,667 4.37 2,928,862 26.23%

12/31/2008 100,561,173 22,239,386 4.52 2,614,604 -30.50%

12/31/2007 101,062,928 22,881,218 4.42 3,093,829 8.35%

12/31/2006 95,523,862 23,155,686 4.13 5,416,924 14.45%
Revenue Procedure 2016-27 Section 6.03: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.03 of Revenue Procedure 2016-27

2

This information, along with other information specific to certain contributing employers, was used by 

the Board of Trustees and Horizon Actuarial Services to develop the assumption for the decline in the 

active population. The information specific to certain employers is not included in this application due 

to the public nature of the application. However, additional information can be supplied to the 

Department of the Treasury upon request.
DB1/ 88552986.1

The New York State Teamsters Conference Pension and Retirement Fund

Application for Suspension of Benefits under MPRA

EXHIBIT 13
The New York State 

Teamsters Conference 

Pension and Retirement 

Fund

Information Required by Section 6.04 of 

Revenue Procedure 2016-27 for Benefit 

Suspensions Effective July 1, 2017

August 31, 2016 

Atlanta  Cleveland  Los Angeles  Miami  Washington, D.C.
Actuarial Statement

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

This report provides the information required by Section 6.04 of Revenue Procedure 2016-27: Application 

Procedures for Approval of Benefit Suspensions for Certain Multiemployer Defined Benefit Pension Plans 

under § 432(e)(9). This information is applicable to the New York State Teamsters Conference Pension and 

Retirement Fund (the “Plan”) assuming an effective date for benefit suspensions as of July 1, 2017. 

Under Section 432(e)(9) of the Internal Revenue Code (“Code”), the plan sponsor of a multiemployer 

defined benefit pension plan in critical and declining status may submit to the Secretary of the Treasury a 

proposal to suspend benefits in certain situations. The Plan was certified as being in critical and declining 

status for the 2016 Plan Year. The results of this certification are detailed in a separate report sent to the 

Board of Trustees on January 7, 2016. 

In preparing this report including information required by Section 6.04 of Revenue Procedure 2016-27, we 

have relied upon information and data provided to us by the Board of Trustees of the Plan, the Plan 

administrator, and other persons or organizations designated by the Board of Trustees. We did not 

perform an audit of the financial and participant census data provided to us, but we have reviewed the data 

for reasonableness for the purpose of the measurement. We have relied on all of the information, 

including plan provisions and asset information, as complete and accurate. 

In our opinion, all methods, assumptions and calculations used in this report are in accordance with 

requirements of the Code and the Employee Retirement Income Security Act of 1974 (“ERISA”), as 

amended by the Pension Protection Act of 2006 (“PPA”), the Pension Relief Act of 2010 (“PRA 2010”), and 

the Multiemployer Pension Reform Act of 2014 (“MPRA”). Further, in our opinion, the procedures followed 

and presentation of results are in conformity with generally accepted actuarial principles and practices. 

This report is based on actuarial calculations that require assumptions about future events. We believe 

that the assumptions and methods used in this report are reasonable and appropriate for the purposes for 

which they have been used. However, other assumptions and methods could also be reasonable and could 

result in materially different results. The Board of Trustees also provided information regarding the levels 

of projected industry activity and future contribution levels, which was used in performing the actuarial 

projections required for this report. 

The undersigned consultants of Horizon Actuarial Services, LLC with actuarial credentials meet the 

Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained 

herein. There is no relationship between the Board of Trustees of the Plan and Horizon Actuarial Services, 

LLC that affects our objectivity. 

Stanley I. Goldfarb, FSA, EA, MAAA

Actuary and Managing Consultant

James M. Locey, EA, MAAA

Consulting Actuary

Redacted by the U.S. Department of the Treasury

Redacted by the U.S. Department of 

the Treasury
Table of Contents

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

Page

Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

Summary 1

Projection 1 – Assumed rate of return is reduced by 1 percentage point 2

Projection 2 – Assumed rate of return is reduced by 2 percentage points 3

Projection 3 – Future CBUs decrease by 10-year historical decrease 4

Projection 4 – Future CBUs decrease by 10-year historical decrease reduced 

by 1 percentage point

5
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

1

Demonstration of sensitivity of projections

Under Section 6.04 of Revenue Procedure 2016-27, the application must include deterministic 

projections of the sensitivity of the plan’s solvency ratio throughout the extended period to certain key 

assumptions. The application must include the following separate projections calculated using the same 

assumptions as those used under Section 4.02(1) of Revenue Procedure 2016-27, except that:

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

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

3. Future contribution base units increase or decrease at a rate equal to the average annual rate of 

increase or decrease that the plan experienced over the period of years described in Section 

6.03 of Revenue Procedure 2016-27

4. Future contribution base units increase or decrease at a rate equal to the average annual rate 

described in item #3 above reduced by 1 percentage point

On the following pages, we have included four plan-year-by-plan-year deterministic projections of the 

available resources as defined in Section 418E(b)(3) of the Code and the benefits under the plan. 
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

2

Projection 1 – The assumed rate of return is reduced by 1 percentage point

The assumed rate of return used in the projection below is 5.75% per year for ten years and 6.50% thereafter. This projection assumes a rate of 

return 1 percentage point less than the rate of return assumed in the projection required under Section 4.02(1) of Revenue Procedure 2016-27.

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return 5.75% for 10 years, 6.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 66,600,585 1,137,123,972 3,311,681,836 37.62% 1,425,374,189 4.945

1 12/31/2017 1,137,123,972 121,451,426 9,586,913 (260,756,505) (9,853,710) 61,371,937 1,058,924,033 3,306,369,346 34.39% 1,319,680,538 5.061

2 12/31/2018 1,058,924,033 125,299,440 9,570,693 (232,949,423) (7,136,955) 57,863,165 1,011,570,953 2,583,054,571 41.00% 1,244,520,376 5.342

3 12/31/2019 1,011,570,953 129,104,157 9,497,851 (235,102,412) (7,235,993) 55,182,908 963,017,465 2,573,839,082 39.30% 1,198,119,877 5.096

4 12/31/2020 963,017,465 132,915,501 9,497,851 (237,371,551) (6,815,865) 52,447,500 913,690,901 2,561,580,101 37.59% 1,151,062,451 4.849

5 12/31/2021 913,690,901 136,794,009 9,497,851 (240,022,859) (6,918,030) 49,643,567 862,685,438 2,545,898,575 35.89% 1,102,708,297 4.594

6 12/31/2022 862,685,438 140,066,105 9,497,851 (242,321,394) (7,022,280) 46,735,746 809,641,466 2,526,107,290 34.15% 1,051,962,860 4.341

7 12/31/2023 809,641,466 143,397,886 9,497,851 (244,243,691) (7,127,573) 43,723,213 754,889,152 2,502,230,140 32.36% 999,132,843 4.091

8 12/31/2024 754,889,152 146,856,501 9,497,851 (245,606,973) (7,234,950) 40,632,109 699,033,690 2,474,320,283 30.51% 944,640,663 3.846

9 12/31/2025 699,033,690 150,470,329 9,497,851 (246,453,271) (7,343,370) 37,496,869 642,702,097 2,442,627,517 28.62% 889,155,368 3.608

1 0 12/31/2026 642,702,097 154,187,423 9,497,851 (246,404,078) (7,453,875) 38,845,024 591,374,442 2,407,380,128 26.70% 837,778,520 3.400

1 1 12/31/2027 591,374,442 157,989,023 9,497,851 (245,911,190) (7,565,423) 35,644,672 541,029,375 2,369,225,471 24.96% 786,940,565 3.200

1 2 12/31/2028 541,029,375 161,966,559 9,497,851 (244,705,543) (7,679,055) 32,537,003 492,646,190 2,328,392,317 23.24% 737,351,733 3.013

1 3 12/31/2029 492,646,190 166,030,497 9,475,797 (243,043,092) (7,793,730) 29,573,760 446,889,421 2,285,412,352 21.56% 689,932,513 2.839

1 4 12/31/2030 446,889,421 170,270,698 9,425,111 (241,470,233) (7,910,490) 26,783,053 403,987,559 2,240,594,177 19.95% 645,457,793 2.673

1 5 12/31/2031 403,987,559 169,563,680 9,251,903 (239,420,826) (8,029,335) 24,028,568 359,381,551 2,193,702,148 18.42% 598,802,376 2.501

1 6 12/31/2032 359,381,551 168,862,638 8,949,319 (237,240,370) (8,150,265) 21,163,494 312,966,367 2,145,072,932 16.75% 550,206,737 2.319

1 7 12/31/2033 312,966,367 168,190,146 8,949,319 (233,684,250) (8,272,238) 18,236,261 266,385,606 2,094,710,727 14.94% 500,069,856 2.140

1 8 12/31/2034 266,385,606 167,514,392 4,474,660 (229,803,938) (8,396,295) 15,163,201 215,337,626 2,043,922,818 13.03% 445,141,564 1.937

1 9 12/31/2035 215,337,626 166,887,631 - (225,711,150) (8,522,438) 11,808,202 159,799,872 1,993,027,459 10.80% 385,511,022 1.708

2 0 12/31/2036 159,799,872 166,266,861 - (220,932,891) (8,650,665) 8,329,199 104,812,376 1,942,254,068 8.23% 325,745,267 1.474

2 1 12/31/2037 104,812,376 165,712,716 - (215,299,990) (8,779,935) 4,915,870 51,361,037 1,892,344,518 5.54% 266,661,027 1.239

2 2 12/31/2038 51,361,037 165,172,640 - (209,388,299) (8,911,290) 1,611,842 INSOLVENT 1,844,281,344 2.78% 209,234,229 0.999

"CY" = current plan year
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

3

Projection 2 – The assumed rate of return is reduced by 2 percentage points

The assumed rate of return used in the projection below is 4.75% per year for ten years and 5.50% thereafter. This projection assumes a rate of 

return 2 percentage points less than the rate of return assumed in the projection required under Section 4.02(1) of Revenue Procedure 2016-27.

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return 4.75% for 10 years, 5.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 55,017,874 1,125,541,261 3,311,681,836 37.62% 1,413,791,478 4.905

1 12/31/2017 1,125,541,261 121,451,426 9,586,913 (260,756,505) (9,853,710) 50,148,378 1,036,117,763 3,306,369,346 34.04% 1,296,874,268 4.974

2 12/31/2018 1,036,117,763 125,299,440 9,570,693 (232,949,423) (7,136,955) 46,716,708 977,618,226 2,583,054,571 40.11% 1,210,567,649 5.197

3 12/31/2019 977,618,226 129,104,157 9,497,851 (235,102,412) (7,235,993) 43,973,126 917,854,956 2,573,839,082 37.98% 1,152,957,368 4.904

4 12/31/2020 917,854,956 132,915,501 9,497,851 (237,371,551) (6,815,865) 41,180,976 857,261,868 2,561,580,101 35.83% 1,094,633,418 4.611

5 12/31/2021 857,261,868 136,794,009 9,497,851 (240,022,859) (6,918,030) 38,329,524 794,942,362 2,545,898,575 33.67% 1,034,965,221 4.312

6 12/31/2022 794,942,362 140,066,105 9,497,851 (242,321,394) (7,022,280) 35,389,994 730,552,638 2,526,107,290 31.47% 972,874,032 4.015

7 12/31/2023 730,552,638 143,397,886 9,497,851 (244,243,691) (7,127,573) 32,362,457 664,439,568 2,502,230,140 29.20% 908,683,259 3.720

8 12/31/2024 664,439,568 146,856,501 9,497,851 (245,606,973) (7,234,950) 29,269,300 597,221,297 2,474,320,283 26.85% 842,828,270 3.432

9 12/31/2025 597,221,297 150,470,329 9,497,851 (246,453,271) (7,343,370) 26,139,586 529,532,421 2,442,627,517 24.45% 775,985,692 3.149

1 0 12/31/2026 529,532,421 154,187,423 9,497,851 (246,404,078) (7,453,875) 26,644,534 466,004,276 2,407,380,128 22.00% 712,408,354 2.891

1 1 12/31/2027 466,004,276 157,989,023 9,497,851 (245,911,190) (7,565,423) 23,265,517 403,280,054 2,369,225,471 19.67% 649,191,244 2.640

1 2 12/31/2028 403,280,054 161,966,559 9,497,851 (244,705,543) (7,679,055) 19,955,098 342,314,964 2,328,392,317 17.32% 587,020,507 2.399

1 3 12/31/2029 342,314,964 166,030,497 9,475,797 (243,043,092) (7,793,730) 16,755,733 283,740,168 2,285,412,352 14.98% 526,783,260 2.167

1 4 12/31/2030 283,740,168 170,270,698 9,425,111 (241,470,233) (7,910,490) 13,689,374 227,744,627 2,240,594,177 12.66% 469,214,861 1.943

1 5 12/31/2031 227,744,627 169,563,680 9,251,903 (239,420,826) (8,029,335) 10,638,504 169,748,555 2,193,702,148 10.38% 409,169,380 1.709

1 6 12/31/2032 169,748,555 168,862,638 8,949,319 (237,240,370) (8,150,265) 7,477,757 109,647,634 2,145,072,932 7.91% 346,888,004 1.462

1 7 12/31/2033 109,647,634 168,190,146 8,949,319 (233,684,250) (8,272,238) 4,248,152 49,078,764 2,094,710,727 5.23% 282,763,014 1.210

1 8 12/31/2034 49,078,764 167,514,392 4,474,660 (229,803,938) (8,396,295) 878,525 INSOLVENT 2,043,922,818 2.40% 213,550,046 0.929

"CY" = current plan year
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

4

Projection 3 – Future contribution base units increase or decrease at a rate equal to the average annual rate of increase or decrease that the 

plan experienced over the period of years described in Section 6.03 of Revenue Procedure 2016-27

Based on information supplied by the Fund administrator, the annual rate of change of contribution base units over the last ten years is a 

decrease of 4.74%. The assumed change in contribution base units used in the projection shown below is a 4.74% annual decrease. 

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return 6.75% for 10 years, 7.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Annual Decrease in Contribution Base Units 4.74%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 86,524,274 1,157,047,661 3,311,681,836 37.62% 1,445,297,878 5.014

1 12/31/2017 1,157,047,661 116,280,505 9,586,913 (260,756,505) (9,853,710) 73,215,648 1,085,520,512 3,306,369,346 34.99% 1,346,277,017 5.163

2 12/31/2018 1,085,520,512 114,874,732 9,570,693 (232,949,859) (7,136,955) 69,369,738 1,039,248,861 2,582,922,625 42.03% 1,272,198,720 5.461

3 12/31/2019 1,039,248,861 113,318,769 9,497,851 (235,104,220) (7,235,993) 66,115,377 985,840,646 2,573,563,119 40.38% 1,220,944,865 5.193

4 12/31/2020 985,840,646 111,691,105 9,497,851 (237,376,224) (6,815,865) 62,392,888 925,230,400 2,561,146,425 38.49% 1,162,606,624 4.898

5 12/31/2021 925,230,400 110,019,541 9,497,851 (240,032,520) (6,918,030) 58,152,183 855,949,426 2,545,292,075 36.35% 1,095,981,945 4.566

6 12/31/2022 855,949,426 107,798,688 9,497,851 (242,338,820) (7,022,280) 53,319,407 777,204,271 2,525,310,696 33.89% 1,019,543,092 4.207

7 12/31/2023 777,204,271 105,585,573 9,497,851 (244,272,353) (7,127,573) 47,860,606 688,748,376 2,501,224,593 31.07% 933,020,728 3.820

8 12/31/2024 688,748,376 103,431,065 9,497,851 (245,651,061) (7,234,950) 41,766,963 590,558,244 2,473,084,750 27.85% 836,209,305 3.404

9 12/31/2025 590,558,244 101,359,645 9,497,851 (246,517,732) (7,343,370) 35,036,310 482,590,948 2,441,138,855 24.19% 729,108,680 2.958

1 0 12/31/2026 482,590,948 99,338,623 9,497,851 (246,494,645) (7,453,875) 30,752,619 368,231,521 2,405,612,838 20.06% 614,726,166 2.494

1 1 12/31/2027 368,231,521 97,332,183 9,497,851 (246,034,416) (7,565,423) 22,113,496 243,575,213 2,367,151,311 15.56% 489,609,629 1.990

1 2 12/31/2028 243,575,213 95,418,193 9,497,851 (244,868,838) (7,679,055) 12,731,947 108,675,310 2,325,980,730 10.47% 353,544,148 1.444

1 3 12/31/2029 108,675,310 93,527,351 9,475,797 (243,254,756) (7,793,730) 2,598,948 INSOLVENT 2,282,629,813 4.76% 206,483,676 0.849

"CY" = current plan year
Revenue Procedure 2016-27 Section 6.04: 

Other Required Information

New York State Teamsters Conference Pension and Retirement Fund

Information Required by Section 6.04 of Revenue Procedure 2016-27

5

Projection 4 – Future contribution base units increase or decrease at a rate equal to the average annual rate of increase or decrease that the 

plan experienced over the period of years described in Section 6.03 of Revenue Procedure 2016-27 reduced by 1 percentage point

Based on information supplied by the Fund administrator, the annual rate of change of contribution base units over the last ten years is a 

decrease of 4.74%. The assumed change in contribution base units used in the projection shown below is a 5.74% annual decrease. 

Revenue Procedure 2016-27, Section 6.04: Sensitivity of the Plan's Solvency Ratio

Assumed Investment Return 6.75% for 10 years, 7.50% thereafter Proposed Benefit Suspensions:

Effective Date of Proposed Benefit Suspension 7/1/2017 Active Participants 20.0%

Expiration of Proposed Benefit Suspension N/A Non-active Participants 31.0%

Annual Decrease in Contribution Base Units 5.74%

Beginning Withdrawal Net Ending Actuarial

Plan Year Market Value Employer Liability Benefit Administrative Investment Market Value Accrued Funded Available Solvency

Ending of Assets Contributions Payments Payments Expenses Return of Assets Liability Percentage Resources Ratio

CY 12/31/2016 1,246,018,691 113,400,703 9,633,260 (288,250,217) (10,279,050) 86,524,274 1,157,047,661 3,311,681,836 37.62% 1,445,297,878 5.014

1 12/31/2017 1,157,047,661 115,054,042 9,586,913 (260,756,505) (9,853,710) 73,174,255 1,084,252,656 3,306,369,346 34.99% 1,345,009,161 5.158

2 12/31/2018 1,084,252,656 112,456,275 9,570,693 (232,949,276) (7,136,955) 69,202,554 1,035,395,947 2,582,890,871 41.98% 1,268,345,223 5.445

3 12/31/2019 1,035,395,947 109,760,405 9,497,851 (235,101,184) (7,235,993) 65,735,313 978,052,340 2,573,258,315 40.24% 1,213,153,524 5.160

4 12/31/2020 978,052,340 107,036,680 9,497,851 (237,366,829) (6,815,865) 61,710,407 912,114,584 2,560,058,840 38.20% 1,149,481,413 4.843

5 12/31/2021 912,114,584 104,318,268 9,497,851 (240,010,676) (6,918,030) 57,075,185 836,077,181 2,542,601,157 35.87% 1,076,087,857 4.483

6 12/31/2022 836,077,181 101,114,543 9,497,851 (242,296,207) (7,022,280) 51,753,879 749,124,967 2,520,072,232 33.18% 991,421,174 4.092

7 12/31/2023 749,124,967 97,979,106 9,497,851 (244,198,576) (7,127,573) 45,711,025 650,986,800 2,492,394,406 30.06% 895,185,376 3.666

8 12/31/2024 650,986,800 94,941,783 9,497,851 (245,533,722) (7,234,950) 38,935,504 541,593,266 2,459,584,510 26.47% 787,126,988 3.206

9 12/31/2025 541,593,266 92,048,496 9,497,851 (246,342,316) (7,343,370) 31,422,843 420,876,770 2,421,820,892 22.36% 667,219,086 2.709

1 0 12/31/2026 420,876,770 89,238,687 9,497,851 (246,244,735) (7,453,875) 25,754,680 291,669,378 2,379,191,421 17.69% 537,914,113 2.184

1 1 12/31/2027 291,669,378 86,491,035 9,497,851 (245,692,034) (7,565,423) 15,977,632 150,378,439 2,332,304,792 12.51% 396,070,473 1.612

1 2 12/31/2028 150,378,439 83,865,425 9,497,851 (244,414,762) (7,679,055) 5,325,988 INSOLVENT 2,281,392,658 6.59% 241,388,648 0.988

"CY" = current plan year