Plasterers & Cement Masons Local No. 94 Pension Plan

Application to the

Pension Benefit Guaranty Corporation

for a Partition Order

March 30, 2018

CM94:00480
APPLICATION FOR PARTITION ORDER FOR

PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

Table of Contents

Page

Section 1. Background and Purpose ............................................................................................1

Section 2. Definitions...................................................................................................................2

Section 3. Application Filing Requirements................................................................................3

Section 4. Information to be Filed ...............................................................................................4

Section 5. Plan Information .........................................................................................................5

Section 6. Partition Information...................................................................................................7

Section 7. Actuarial and Financial Information.........................................................................17

Section 8. Participant Census Data ............................................................................................23

Section 9. Financial Assistance Information .............................................................................24

CM94:00481
APPLICATION FOR PARTITION ORDER FOR

PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

Section 1. Background and Purpose

- 1 -

In December 2014, Congress enacted, and the President signed, the Consolidated and Further 

Continuing Appropriations Act, 2015, Public Law 113–235 (128 Stat. 2130 (2014)), of which 

MPRA is a part. MPRA contains a number of statutory reforms intended to help financially 

troubled multiemployer plans, and to improve the financial condition of PBGC’s multiemployer 

insurance program. In addition to increased premiums, sections 121 and 122 of MPRA provide 

PBGC with new statutory authority to assist financially troubled multiemployer plans under 

certain conditions, if doing so would reduce potential future costs to PBGC and if PBGC can 

certify that its ability to meet existing financial assistance to other plans will not be impaired.

This application is submitted in accordance with PBGC Regulation §4233 and the section 

numbers and exhibits included with this application match those in the Regulation.

CM94:00482
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 2. Definitions

- 2 -

Defined terms in this application follow the definitions in PBGC Regulation §4233.2.

CM94:00483


Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 5. Plan Information

- 5 -

(a) The name of the plan, Employer Identification Number (EIN), and three-digit Plan

Number (PN).

Plan Name Plasterers & Cement Masons Local No. 94 Pension Plan

Plan EIN / PN 23-6445411 / 001

(b) The name, address, and telephone number of the plan sponsor and the plan 

sponsor’s duly authorized representative, if any.

Sponsor Name Board of Trustees of the Plasterers & Cement Masons Local No. 

94 Pension Plan

Address c/o PATH Administrators

4785 Linglestown Road Suite 200

Harrisburg, PA 17112

Telephone 717-671-8551

Plan Sponsor’s Duly Authorized Representative:

Name James J. McKeogh, Enrolled Actuary

Address 200 Barr Harbor Drive, Suite 225

West Conshohocken, PA 19428

Telephone 484-530-0692

(c) The most recent trust agreement, including all amendments adopted since the last

restatement.

The most recent trust agreement and all amendments adopted since the last restatement 

are attached as Exhibit 5c.

(d) The most recent plan document, including all amendments adopted since the last 

restatement.

The most recent plan document and all amendments adopted since the last restatement 

are attached as Exhibit 5d.

(e) The most recent summary plan description (SPD), and all summaries of material 

modification (SMM) issued since the effective date of the most recent SPD.

The most recent SPD, and all SMMs issued since the effective date of the most recent 

SPD are attached as Exhibit 5e.

(f) The most recent rehabilitation plan (or funding improvement plan, if applicable),

including all subsequent amendments and updates, and the percentage of total 

CM94:00486
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 5. Plan Information

- 6 -

contributions received under each schedule of the rehabilitation plan for the most 

recent plan year available.

The most recent rehabilitation plan, including all subsequent amendments and updates is 

attached as Exhibit 5f. All contributing employers have been following the default

schedule.

(g) A copy of the plan’s most recent IRS determination letter.

A copy of the plan’s most recent IRS determination letter is attached as Exhibit 5g.

(h) A copy of the plan’s most recent Form 5500 (Annual Report Form) and all 

schedules and attachments (including the audited financial statement).

A copy of the plan’s most recent Form 5500 and all schedules and attachments including 

the audited financial statement are attached as Exhibit 5h.

(i) A current listing of employers who have an obligation to contribute to the plan, and

the approximate number of participants for whom each employer is currently 

making contributions.

Contributing Employer Participant Count as of 

May 1, 2017

GM McCrossing, Inc. 1

Macri Concrete Inc. 10

McKinney Drilling Company LLC 2

Novinger's Inc. 10

Shamokin Dam Construction LLC 13

(j) A schedule of withdrawal liability payments collected in each of the most recent five

plan years.

Plan Year Beginning Withdrawal Liability Payments

May 1, 2016 $0

May 1, 2015 $0

May 1, 2014 $0

May 1, 2013 $0

May 1, 2012 $0

CM94:00487
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 7 -

(a) A detailed description of the proposed partition, including the proposed structure,

proposed effective date, and any larger integrated transaction of which the proposed 

partition is a part (including, but not limited to, an application for suspension of benefits 

under section 305(e)(9)(G), or a merger under section 4231 of ERISA). With respect to 

coordinated applications for partition and suspension of benefits, proposed effective dates 

for both transactions must satisfy the requirements of section 305(e)(9)(D)(v) of ERISA.

The Trustees’ proposed effective date for the partition is May 1, 2019. The proposed 

structure of the partition is to transfer the PBGC guaranteed benefits for the following 

participant groups to the Successor Plan:

• 100% of the liability associated with Terminated Vested Participants

• 50% of the liability associated with Retirees currently in pay status

• 0% of the liability associated with current Beneficiaries in pay status

• 0% of the liability associated with current Active Participants

An application for suspension of benefits under section 305(e)(9)(G) has been submitted 

simultaneously with this application. A copy of that application is attached as Exhibit 10.

(b) A narrative description of the events that led to the plan sponsor’s decision to 

submit an application for partition (and, if applicable, application for suspension of 

benefits).

Since the start of the Plan Year beginning May 1, 2007, the Fund has seen significant 

decreases in both assets and contribution hours due, in particular, to the financial crisis of 

2008. Specifically, the Fund has seen a 44% decrease in the market value of assets from 

2007 to 2017 and a 58% decrease in contribution hours when comparing the Plan Year 

beginning in 2007 to the average hours during the Plan Years beginning in 2008 through 

2016. The collapse of the financial markets in 2008 resulted in the Fund’s experiencing 

the worst investment losses on record and resulted in the collapse of the building and 

construction industry in the geographic area covered by the Fund and also in the 

geographic area where contributing employers performed work. This, along with the 

maturity of the Fund, has made it difficult for the Fund to recover from the economic 

downturns it has experienced. With an inactive to active ratio over 300% for most of the 

period since 2010, the Fund has found itself in a situation where the contributions from 

active members are not substantial enough to keep the Fund from becoming insolvent.

On July 27, 2010, the Fund was first certified to be in “Critical Status” within the 

meaning of the Pension Protection Act of 2006 (the “PPA”) for the Plan Year beginning 

on May 1, 2010. In March 2011, the Board of Trustees adopted a Rehabilitation Plan that 

contained four schedules providing reductions in benefits, increases in contributions or 

both, that were reasonably expected to enable the Fund to emerge from critical status at 

the end of the Rehabilitation Period (10-year period beginning on May 1, 2011). 

CM94:00488
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 8 -

Following the adoption of the Rehabilitation Plan, the economic conditions in the 

building and construction trades did not improve but rather continued to decline. In light 

of this information and based on reasonable actuarial assumptions the Trustees concluded 

that the Fund could not reasonably be expected to emerge from critical status by the end 

of the Rehabilitation period. In reaching this conclusion, the Fund’s Trustees considered, 

as of fall 2011, anticipated investment losses for the Plan Year ending April 30, 2012. 

The Trustees therefore decided to amend the Rehabilitation Plan on October 21, 2011. 

The updated Rehabilitation Plan eliminated all four schedules and replaced them with one 

Default Schedule calling for an increase in the contribution rate from $8.10 per hour to 

$9.10 per hour. The Fund’s Trustees concluded that a further reduction in benefits would 

be inconsistent with the goal of presenting a viable plan with ongoing value to active 

participants. The magnitude of the employer contribution increases needed to satisfy the 

requirements for a 10-year rehabilitation plan, however, would almost certainly result in 

lower negotiated wages for participants and/or decreased employer contributions to other 

benefit plans covering these participants (such as the plan providing their health benefit 

coverage). If participants perceived a significant decrease in value in their total overall 

compensation—including wages, pension benefits and health benefits—the Fund’s 

Trustees concluded that they would be likely to encourage their employers to withdraw 

from the Fund. Such actions would also make the plan less attractive to new employers 

and could also lead to increased employer withdrawals or reductions in contributions 

from current employers, as the collective bargaining parties would see less benefit to 

ongoing participation.

Due to a combination of unfavorable investment returns and lower than expected industry 

activity during the Plan Year that ended April 30, 2012, the Fund was certified in July 

2012 to not project to emerge from critical status by the end of the Rehabilitation period.

In February 2013 the Trustees again decided to amend the Rehabilitation Plan in light of 

continuing poor economic conditions. Hours had reached a new low in the Plan Year 

ending April 30, 2012 and as of February 2013 the Fund was on pace to have 

contribution hours similar to this number in the Plan Year ending April 30, 2013. The 

Trustees reviewed the Fund’s contribution rates and the Fund’s benefits with a view to 

making modifications to these so as to further enable the Fund to forestall insolvency. In 

considering contribution rate increases, the Trustees concluded that it would not be 

realistic to increase the rate of contributions given the impact of the severe economic 

decline in the building and construction industry. The Trustees then reviewed possible 

modifications to the Plan of Benefits and concluded that changes could be made that 

would allow the Rehabilitation Plan to reflect a more meaningful effort to forestall the 

Fund’s insolvency. The monthly benefit multiplier was reduced from $77.50 to $33.00, 

the Early Retirement Pension reduction factor was increased from 3.33% to 6.00% per 

year and the Pre-Retirement Death Benefit was decreased in value by applying a 6.00% 

CM94:00489
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 9 -

per year reduction for commencement prior to Normal Retirement Date. Despite these 

actions the Fund’s funded percentage and the Funding Standard Account Credit Balance 

were projected to continue to decline.

While the Fund saw an improved investment return in the Plan Year ending April 30, 

2014 it again saw hours decrease to a new low. Despite the decreased contribution hours, 

the improvement in general economic conditions provided the Trustees the ability to 

amend the Rehabilitation Plan effective May 1, 2014 to increase the contribution rate 

from $9.10 per hour to $9.30 per hour, effective May 1, 2014, as part of the Default 

Schedule.

The Plan Year ending April 30, 2016 was once again a challenging year in the markets 

and the Fund experienced an investment return of -1.42%. This loss led the Trustees to 

amend the Rehabilitation Plan to further reduce benefits. The Board decided to eliminate 

the Fund’s Disability benefit for those with disability retirement effective dates on or 

after March 15, 2017, eliminate the post-disability-retirement death benefit for those with 

disability retirement effective dates on or after March 15, 2017, and eliminate the Pop-Up 

Provision of the Husband-Wife 50%, Husband-Wife 75% and Husband-Wife 100% 

forms of Pension payments for those with retirement effective dates on or after March 15, 

2017.

It is the Trustees’ opinion that as of the filing of this application all reasonable measures 

the Fund can take have been exhausted in the efforts to avoid insolvency. Despite these 

measures, the Fund is projected to become insolvent unless benefits are suspended to the 

maximum allowable extent and a partition of benefits is approved.

(c) A narrative description of significant risks and assumptions relating to the proposed

partition and the projections provided in support of the application. 

The assumptions relating to the proposed partition and the projections supplied with this 

application are detailed in Exhibit 6c.

The most significant risks include a return on plan assets lower than that assumed, the 

withdrawal of additional employers, future reduction in the workforce beyond that which 

was anticipated in this application, participants living longer than anticipated, and plan 

expenses increasing beyond what was anticipated.

(d) If applicable, a copy of the plan sponsor’s application for suspension of benefits

(including all attachments and exhibits). 

A copy of the plan sponsor’s application for suspension of benefits including all 

attachments and exhibits is attached as Exhibit 10.

CM94:00490
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 10 -

(e) A detailed description of all measures the plan sponsor has taken (or is taking) to

avoid insolvency, and any measures the plan sponsor considered taking but did not 

take, including the factor(s) the plan sponsor considered in making these 

determinations. Include all relevant documentation relating to the plan sponsor’s 

determination that it has taken (or is taking) measures to avoid insolvency.

(1) Reductions in Plan Benefits

• Benefit Accrual Rate: The benefit accrual rate for future service only was 

reduced from $77.50 to $33.00 effective May 1, 2013.

• Pre-Retirement Surviving Spouse Benefit: The pre-retirement surviving spouse 

benefit was changed from 50% of the Straight Life Annuity amount to 50% of the 

50% Joint and Survivor Annuity amount effective May 1, 2013.

• Early Retirement Subsidies: The early retirement reduction factors were changed 

from 3.33% per year to 6.00% per year effective May 1, 2013.

• Optional Form of Payment Subsidies: The pop-up feature for future retirements 

was eliminated for retirements on or after March 15, 2017.

• Disability Benefits for Current Active Participants: The Disability Retirement 

Pension was eliminated for participants whose disability benefit commencement 

dates would have been on or after March 15, 2017.

• Death Benefit: The Post-Disability Death Benefit was eliminated for future 

deaths effective March 15, 2017.

CM94:00491
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 11 -

(2) Contribution Rate Increases

The hourly contribution rates have increased as shown below. They are expected to 

remain at $9.30 for the duration of the projections enclosed in this application. 

May 1, Rate

2007 $ 5.60 

2008 6.10 

2009 7.10 

2010 8.10 

2011 9.10 

2012 9.10 

2013 9.10 

2014 9.30 

2015 9.30 

2016 9.30 

2017 9.30 

(3) Plan Factors

In accordance with §432(e)(9)(C)(ii), the following factors were taken into account in the 

plan sponsor’s determination that all reasonable measures have been taken to avoid 

insolvency:

A. Contribution Levels. Contribution rates are summarized in Section 6(e)(2)

of this application. Contribution dollars and hours are summarized in the 

table below:

Plan Year

Beginning

May 1,

Total 

Contributions

Contribution 

Base Units

(1) (2)

2007 $ 348,439 62,221

2008 $ 225,864 37,011

2009 $ 177,336 24,979

2010 $ 216,622 26,746

2011 $ 162,284 19,774

2012 $ 178,924 19,662

CM94:00492
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 12 -

Plan Year

Beginning

May 1,

Total 

Contributions

Contribution 

Base Units

2013 $ 129,065 14,183

2014 $ 173,121 18,618

2015 $ 222,293 23,903

2016 $ 388,128 41,252

B. Levels of benefit accruals are provided in Section 6(e)(1) of this 

application.

C. Prior reductions of adjustable benefits under § 432(e)(8) are provided in 

Section 6(e)(1) of this application.

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

employers:

The Trustees have taken multiple measures to attract and retain employers. 

First, shortly after developing a Rehabilitation Plan consisting of multiple 

schedules with large contribution increases the Trustees realized that 

forcing the small set of contributing employers to adopt these schedules 

would inevitably force them out of business or, at the very least, out of the 

Fund. Instead the Trustees revised the Rehabilitation Plan to consist of one 

Default Schedule which called for a more sustainable contribution 

increase. 

Similarly, the Trustees reviewed the possibility of continued cuts to 

benefits accruals and the overall benefits package of the Fund. While the 

Trustees committed to making a number of benefit reductions as noted 

throughout this application they were also aware that reducing the Plan of 

Benefits too much would negatively impact employer retention. The 

Trustees feel that too significant a decrease in the total compensation 

received by the Active Participants would lead to Active Participants 

pushing their employer to withdraw from the Fund. Ultimately the 

Trustees removed almost all subsidies from the Fund and brought the 

accrual rate down to a level they felt was as diminished as they could 

afford while not risking the loss of the contribution base it had remaining.

E. Remaining Ancillary Benefits. There are no remaining ancillary benefits 

for active participants. Almost all subsidies for Active Participants have 

CM94:00493
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 13 -

been removed from the Fund as part of the Rehabilitation Plan. The only 

subsidies remaining are as follows: (1) as noted in Section 6(e)(1), early 

retirement factors have been reduced to 6% per year prior to Normal 

Retirement and (2) form of payment conversion factors are based on a 

table provided in the Amended and Restated Plan of Benefits.

F. Compensation levels of active participants relative to employees in the 

participants’ industry generally.

Compensation level of Active Participants are substantially higher than 

non-union employees in the industry covered by the Fund, particularly 

when taking into account benefit costs.

G. Competitive and other economic factors facing contributing employers

Since the start of the Plan Year beginning May 1, 2007, the Fund has seen 

significant decreases in both assets and contribution hours due, in 

particular, to the financial crisis of 2008. Specifically, the Fund has seen a 

44% decrease in the market value of assets from 2007 to 2017 and a 58% 

decrease in contribution hours when comparing the Plan Year beginning in 

2007 to the average hours during the Plan Years beginning in 2008 

through 2016. The collapse of the financial markets in 2008 resulted in the 

Fund’s experiencing the worst investment losses on record and resulted in 

the collapse of the building and construction industry in the geographic 

area covered by the Fund and also in the geographic area where 

contributing employers performed work. This, along with the maturity of 

the Fund, has made it difficult for the Fund to recover from the economic 

downturns it has experienced. With an inactive to active ratio over 300% 

for most of the period since 2010, the Fund has found itself in a situation 

where the contributions from active members are not substantial enough to 

keep the Fund from becoming insolvent.

(4) How Plan Factors Were Taken Into Account

The factors listed in Section 6(e)(3) of this application were taken into account in 

the plan sponsor’s determination that all reasonable measures have been taken to 

avoid insolvency, as follows:

(A) Contribution levels

As shown in Section 6(e)(1), contribution rates have increased by 66% 

since 2007, from $5.60 to $9.30. The Trustees determined that 

CM94:00494
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 14 -

contribution rates could not be increased above the current levels for fear 

of driving contributing employers out of the Fund.

(B) Benefit accrual levels

The benefit accrual rate was significantly reduced from $77.50 to $33.00 

effective May 1, 2013, a reduction of approximately 57%. This benefit 

level is already below the maximum PBGC guarantee for multiemployer 

plans. Furthermore, for an Active Participant earning 0.70 years of 

credited service in a year, an accrual equal to 1% of contributions would 

be approximately $91, an accrual almost 3 times as large as the accrual 

these Active Participants are receiving. The Trustees thus determined that 

reducing accrual levels even further would create too great a level of 

intergenerational inequity in benefits.

(C) Prior reductions of adjustable benefits under § 432(e)(8)

Prior reductions in adjustable benefits under § 432(e)(8) are discussed in 

in Section 6(e)(1) of this application.

(D) Measures undertaken by the plan sponsor to retain or attract contributing 

employers

See Section 6(e)(3) for measures undertaken by the Plan Sponsor to retain 

or attract contributing employers. See Sections 6(b) and 6(e)(4) of this 

application for a narrative description of how these measures were taken 

into account in the plan sponsor’s determination that all reasonable 

measures have been taken to avoid insolvency.

(E) Effect on plan solvency of the subsidies and ancillary benefits, if any, 

available to active participants.

As noted in Section 6(e)(1), there are no remaining ancillary benefits for 

active participants. The remaining subsidies available to active 

participants which are noted above are considered to be immaterial 

relative to the Plan’s projected insolvency.

(F) Compensation levels of active participants relative to employees in the 

participants’ industry generally.

Compensation level of Active Participants are substantially higher than 

non-union employees in the industry covered by the Fund, particularly 

when taking into account benefit costs.

CM94:00495
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 15 -

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

The collapse of the financial markets in 2008 resulted in the Fund 

experiencing the worst investment losses on record and resulted in the 

collapse of the building and construction industry. This led to an extreme 

downturn in the building and construction industry in the geographic area 

covered by the Fund and also in the geographic area where contributing 

employers performed work as well. As a result, the magnitude of the 

employer contribution increases needed to satisfy the requirements for a 

10-year Rehabilitation Plan would almost certainly result in lower 

negotiated wages for Active Participants and/or decreased employer 

contributions to other benefit plans covering these Active Participants 

(such as the plan providing their health benefit coverage). If Active 

Participants perceived a significant decrease in value in their total overall 

compensation—including wages, pension benefits and health benefits—

the Fund’s Trustees concluded that they would be likely to encourage their 

employers to withdraw from the Fund. Thus, the Fund’s Trustees 

concluded that a further reduction in benefits would be inconsistent with 

the goal of presenting a viable plan with ongoing value to Active 

Participants. Such actions would also make the Fund less attractive to new 

employers and could also lead to increased employer withdrawals or 

reductions in contributions from current employers, as the collective 

bargaining parties would see less benefit to ongoing participation.

(H) The factors described in § 432(e)(9)(C)(ii)(VIII) (the impact of benefit and 

contribution levels on retaining active participants and bargaining groups 

under the plan), and the factors described in §432(e)(9)(C)(ii)(IX) (the 

impact of past and anticipated contribution increases under the plan on 

employer attrition and retention levels) were taken into account in the plan 

sponsor’s determination that all reasonable measures have been taken to 

avoid insolvency, as follows:

As noted elsewhere, contribution levels have increased by 66% since 

2007, from $5.60 to $9.30. The Trustees determined that contribution 

levels cannot be increased above the current levels for fear of driving 

contributing employers out of the Fund. Furthermore, the Trustees fear 

that increased contributions to a failing Fund will cause Active 

Participants to perceive a decrease in value in their total overall 

compensation package which could encourage Active Participants to 

advocate for their employers to withdraw from the Fund while also 

making the Fund less attractive to new employers.

The Board of Trustees had discussions with the Board of Trustees of 

CM94:00496
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 6. Partition Information

- 16 -

another Pension Plan affiliated with the Operative Plasterers and Cement 

Masons International Association regarding the possibility of a merger. 

The Board of Trustees of that Plan rejected the proposed merger.

(f) A detailed description of the estimated benefit amounts the plan sponsor has

determined are necessary to be partitioned for the plan to remain solvent, including 

the following information:

(1) The estimated number of participants and beneficiaries whose benefits (or 

any portion thereof) would be transferred, including the number of retirees 

receiving payments (if any), terminated vested participants (if any), and 

active participants (if any).

15 Terminated Vested participants

16Retirees receiving payments

0 Beneficiaries

0 Active participants

(2) Supporting data, calculations, assumptions, and a description of the 

methodology used to determine the estimated benefit amounts.

The supporting data and calculations are attached as Exhibit 8. The certification 

is based, in part, on the assumptions and plan provisions from May 1, 2017 

actuarial valuation, which is included as Exhibit 7a1, as well as the assumptions 

detailed in Exhibit 6c. The groups chosen were selected as described below in (3). 

(3) If applicable, a description of any classifications or specific group(s) of 

participants and beneficiaries whose benefits (or any portion thereof) the 

plan sponsor proposes to transfer, and the plan sponsor’s rationale or basis 

for selecting those classifications or groups.

All Terminated Vested participants were selected to defer the financial assistance 

requested from the PBGC. No Active participants were selected to keep the 

calculations as straight-forward as possible. The youngest retirees were selected 

to keep the number of participants with transferred benefits at a minimum.

(g) A copy of the draft notice of application for partition described in §4233.11

A copy of the draft notice of application for partition is attached as Exhibit 6g.

CM94:00497
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 7. Actuarial and Financial Information

- 17 -

(a) Required information. An application for partition must include the following plan

actuarial and financial information:

(1) A copy of the plan’s most recent actuarial report and copies of the actuarial 

reports for the two preceding plan years.

The May 1, 2015, May 1, 2016 and May 1, 2017 actuarial valuation reports are 

attached as Exhibit 7a1.

(2) A copy of the plan actuary’s most recent certification of critical and declining 

status, including a detailed description of the assumptions used in the 

certification, the basis for the projection of future contributions, withdrawal 

liability payments, investment return assumptions, and any other assumption 

that may have a material effect on projections.

The May 1, 2017 certification is attached as Exhibit 7a2. This certification 

references the most recent actuarial valuation for a description of some of the 

assumptions. The valuation is attached as Exhibit 7a1. 

(3) A detailed statement of the basis for the conclusion that the plan will not 

remain solvent without a partition and, if applicable, suspension of benefits, 

including supporting data, calculations, assumptions, and a description of the 

methodology. Include as an exhibit annual cash flow projections for the plan 

without partition (or suspension, if applicable) through the projected date of 

insolvency. 

The attached Exhibit 7a3 shows the plan becoming insolvent in the Plan Year 

ending April 30, 2027 without a partition and suspension of benefits. The 

assumptions used in the projections are detailed in Exhibit 6c.

The conclusion that the plan will not remain solvent without a partition is based, 

in part, on the May 1, 2017 certification of critical and declining status which is 

attached as Exhibit 7a2. Additional details regarding the basis for the conclusion 

that the plan will not remain solvent without a partition and suspension of benefits 

can be found in Section 6 of this application.

(4) A long-term projection reflecting reduced benefit disbursements at the 

PBGC guarantee level after insolvency, and a statement of the present value 

of all future financial assistance without a partition (using the interest and 

mortality assumptions applicable to the valuation of plans terminated by 

mass withdrawal as specified in §4281.13 of this chapter and other 

reasonable actuarial assumptions, including retirement age, form of benefit 

payment, and administrative expenses, certified by an enrolled actuary).

CM94:00498



Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 7. Actuarial and Financial Information

- 21 -

pre-partition benefit disbursements from the original plan reflecting reduced 

benefit disbursements at the PBGC-guarantee level beginning on the proposed 

effective date of the partition. The projections are based, in part, on the 

assumptions and plan provisions from May 1, 2017 actuarial valuation, which is 

included as Exhibit 7a1, as well as the assumptions detailed in Exhibit 6c.

(10) A long-term projection of pre-partition benefit disbursements from the 

original plan reflecting the maximum benefit suspensions permissible under 

section 305(e)(9) of ERISA beginning on the proposed effective date of the 

partition (using an open group valuation and organized separately by 

participant status groupings (e.g., active, retiree, terminated vested, 

beneficiary)).

The attached Exhibit 7a10 contains the requested long-term projection reflecting 

pre-partition benefit disbursements from the original plan reflecting the maximum 

benefit suspensions permissible under section 305(e)(9) of ERISA beginning on 

the proposed effective date of the partition. The projections are based, in part, on 

the assumptions and plan provisions from May 1, 2017 actuarial valuation, which 

is included as Exhibit 7a1, as well as the assumptions detailed in Exhibit 6c.

(b) Additional projections. PBGC may ask the plan for additional projections based on

assumptions that it specifies.

The plan will provide any additional projections requested by the PBGC.

(c) Actuarial calculations and assumptions. 

(1) General. All calculations required by this part must be performed by an 

enrolled actuary.

All calculations required by this part were performed by an enrolled actuary.

(2) Assumptions. All calculations required by this part must be consistent with

calculations used for purposes of an application for suspension of benefits 

under section 305(e)(9) of ERISA, and based on methods and assumptions 

each of which is reasonable (taking into account the experience of the plan 

and reasonable expectations), and which, in combination, offer the actuary’s 

best estimate of anticipated experience under the plan. Any change(s) in

assumptions from the most recent actuarial valuation, and critical and 

declining status certification, must be disclosed and must be accompanied by 

a statement explaining the reason(s) for any change(s) in assumptions.

CM94:00502
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 7. Actuarial and Financial Information

- 22 -

All calculations required by this part were consistent with the calculations used 

for purposes of the application for suspension of benefits under section 305(e)(9) 

of ERISA, and based on methods and assumptions each of which is reasonable 

(taking into account the experience of the plan and reasonable expectations), and 

which, in combination, offer the actuary’s best estimate of anticipated experience 

under the plan. The assumptions used in the calculations required by this part, as 

well as any change(s) from the most recent actuarial valuation, and critical and 

declining status certification, are detailed in Exhibit 6c.

CM94:00503
Plasterers & Cement Masons Local No. 94 Pension Plan

Application for a Partition Order

Section 8. Participant Census Data

- 23 -

An application for partition must include a copy of the census data used for the

projections described in § 4233.7(a)(3) and (5), including:

(a) Participant type (retiree, beneficiary, disabled, terminated vested, active, alternate

payee).

(b) Date of birth.

(c) Gender

(d) Credited service for guarantee calculation (i.e., number of years of participation).

(e) Vested accrued monthly benefit before benefit suspension under section 305(e)(9) of

ERISA.

(f) Vested accrued monthly benefit after benefit suspension under section 305(e)(9) of

ERISA.

(g) Monthly benefit guaranteed by PBGC (determined under the terms of the original

plan without respect to benefit suspensions).

(h) Benefit commencement date (for participants in pay status and others for which the

reported benefit is not payable at Normal Retirement Date).

(i) For each participant in pay status—

(1) Form of payment, and

(2) Data relevant to the form of payment, including:

(i) For a joint and survivor benefit, the beneficiary’s benefit amount 

(before and after suspension) and the beneficiary’s date of birth;

(ii) For a Social Security level income benefit, the date of any change in 

the benefit amount, and the benefit amount after such change;

(iii) For a 5-year certain or 10-year certain benefit (or similar benefit), the 

relevant defined period.

(iv) For a form of payment not otherwise described in this section, the 

data necessary for the valuation of the form of payment, including the 

benefit amount before and after suspension.

(j) If an actuarial increase for postponed retirement applies or if the form of annuity is 

a Social Security level income option, the monthly vested benefit payable at normal 

retirement age in normal form of annuity.

The above requested information is attached as Exhibit 8.

CM94:00504
Plasterers & Cement Masons Local No. 94 Pension Plan 

Application for a Partition Order 

Section 9. Financial Assistance Information 

- 24 - 

(a) Required information. An application for partition must include the estimated 

amount of annual financial assistance requested from PBGC for the first year the 

plan receives financial assistance if partition is approved. 

The Plan requests approximately $143,000 in financial assistance for the period from the 

proposed partition date of May 1, 2019 through the April 30, 2020 end of that plan year. 

(b) Additional information. PBGC may ask the plan for additional information in 

accordance with § 4233.4(b)(1) 

The Plan will provide any additional information requested by the PBGC. 

N:\1525\2017\Benefit Suspension - Partition (Preliminary)\Application Docs & Exhibits\CM94 Prttn Application v12 docx 

CM94:00505
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00506
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00507
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00508
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00509
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00510
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00511
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00512
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00513
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00514
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00515
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00516
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00517
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00518
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00519
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00520
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00521
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00522
 APPLICATION FOR A PARTITION ORDER FOR

 PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND

 EIN/PN: 23-6445411 / 001

 Exhibit 5c

 Most Recent Trust Agreement

CM94:00523