Exhibit 2: Page 1 of 16

WESTERN STATES OFFICE AND 

PROFESSIONAL EMPLOYEES PENSION FUND

SUSPENSION APPLICATION 

Exhibit 2
Redacted by the U.S. Department of 

the Treasury

as of January 1, 2016 

for 

Western States Office and Professional Employees Pension Fund 

EIN: 94-6076144 / PN: 001 

Initial Critical Zone Certification: 

Adoption Period: 

Rehabilitation Period: 

Initial Critical and Declining Zone Certification: 

January 1, 2009 

March 31, 2009- December 31, 2011 

January 1, 2012 -forestall insolvency 

January 1, 2016 

After considering and rejecting as unfeasible various scenarios intended to meet the benchmarks of the 

Pension Protection Act, the Trustees modified the Rehabilitation Plan in 2012 to include reasonable 

measures to forestall possible insolvency, in compliance with IRC Section 432(e)(3)(A)(ii). 

Based on the following actuarial measures, the Plan is classified as •critical and Declining Status" (a Red 

Zone category) for the 2016 Plan Year as per the Multiemployer Pension Reform Act of 2014 (MEPRA). 

The Plan meets the criteria for Critical Status, and The Plan is projected to become insolvent in the current or during the next 19 plan years, and 

);. The Plan's funded percentage is less than 80%. 

Please refer to the attached Actuarial Certification as of January 1, 2016, which was prepared for the 

Western States Office and Professional Employees Pension Fund and filed on March 30, 2016 with the 

Secretary of the Treasury. Additional supporting documentation is also attached. 

Certified by: 

Paul Graf, A.S.A., E.A., M.A.A.A. Enrolled Actuary No. 14-05627 

February 15, 2017 

Exhibit 2: Page 2 of 16 
Exhibit 2: Page 3 of 16

3 7 8 VI N T A G E P A R K DR I V E  F O S T E R CI T Y , CA L I F O R N I A 9 4 4 0 4 - 4 8 1 3 

T E L E P H O N E ( 6 5 0 ) 3 4 1 - 3 3 1 1  F A X ( 2 0 6 ) 4 4 5 - 1 8 4 0 

W W W . R A E L -L E T S O N . C O M

ACTUARIAL CERTIFICATION REQUIRED UNDER 

INTERNAL REVENUE CODE SECTION 432(b) 

Western States Office and Professional Employees Pension Fund 

Plan Year Beginning January 1, 2016 

TO: Secretary of the Treasury 

 Board of Trustees of the 

 Western States Office and Professional Employees Pension Fund 

FROM: Paul L. Graf, Plan Actuary 

DATE: March 30, 2016 

RE: Western States Office and Professional Employees Pension Fund 

 EIN = 94-6076144; PN = 001 

 Plan Sponsor: Board of Trustees Western States Office and Professional 

Employees Pension Fund 

 1220 S.W. Morrison St, Suite 300 

 Portland, Oregon 97205-2222 

 (503) 224-0048 

 

The following certifies that, in accordance with Internal Revenue Code Section 432(b), the 

Western States Office and Professional Employees Pension Fund (“the Plan”), as of the 

beginning of its 2016 Plan Year: 

 is in critical and declining status 

 

As of January 1, 2016, the projections used for this certification estimate the Plan’s funded 

percentage to be 64.6%, the Funding Standard Account Credit Balance to be depleted by 

December 31, 2016 and the Plan is projected to be insolvent by December 31, 2035. 

Accordingly, the Plan is in critical and declining status for the 2016 Plan Year based on the 

criteria outlined in Internal Revenue Code Sections 432(b)(2)(B) and 432(b)(6) and the 

Multiemployer Pension Reform Act of 2014 (“MPRA”). 
Secretary of the Treasury 

Board of Trustees of the 

Western States Office and Professional Employees Pension Fund 

March 30, 2016 

Page 4 

Exhibit 2: Page 4 of 16

The basis for this certification is as follows: 

1. The projected present value of Plan liabilities as of the beginning of the 2016 Plan Year is 

based on the actuarial valuation as of January 1, 2015, and assumes no future liability 

gains or losses. The data, methodology, Plan provisions and assumptions utilized in the 

projection are those used for the January 1, 2015 actuarial valuation (except where noted 

otherwise in this document). The methods and assumptions are outlined in Exhibit I. 

2. An actuarial projection of the Actuarial Value of Assets is based on the preliminary 

unaudited financial statements as of December 31, 2015, as provided by the 

Administrator, and assumes no investment gains or losses on market values after that 

date. The January 1, 2016 Market Value of Assets and 2015 cash flow components 

provided by the Administrator are: 

a. Market Value as of January 1, 2016 $ 334,216,189 

b. 2015 Employer Contributions 11,846,940

c. 2015 Benefit Payments 38,945,444

The assumptions and methodology utilized in the projection are those used for the 

January 1, 2015 actuarial valuation and are outlined in Exhibit I. 

3. Contributions for the current and succeeding plan years are projected assuming the terms 

of the current collective bargaining agreements pursuant to which the Plan is maintained 

continue in effect for succeeding plan years. Contributions include the automatic 10% 

employer surcharge for those contracts which have not yet been negotiated with terms 

consistent with the adopted Rehabilitation Plan. , in accordance with the adopted 

Rehabilitation Plan. 

For purposes of evaluating critical and declining status, as outlined in Internal Revenue 

Code Section 432(b)(6), we have assumed contribution rates increase beyond the current 

CBA(s) in accordance with the adopted rehabilitation plan. The percent of total 

contributions attributable to surcharges and enhancements is assumed to be 80% of the 

accruing contributions beginning in 2016. In addition, the scheduled withdrawal liability 

payments for employers that withdrew prior to January 1, 2016 are reflected in the 

projections. 
Secretary of the Treasury 

Board of Trustees of the 

Western States Office and Professional Employees Pension Fund 

March 30, 2016 

Page 5 

Exhibit 2: Page 5 of 16

Based on input from the Board of Trustees, our projections assume that total hours 

worked remain constant at 2015 work levels. 

4. The Plan received approval for a 5-year extension of charge bases effective for the Plan 

Year beginning January 1, 2009, as permitted under Internal Revenue Code Section 

431(d). However, for the purpose of determining the Plan’s critical status, the applicable 

charge base extensions have not been reflected in these projections. 

5. The projections reflect the provisions of the Multiemployer Pension Reform Act of 2014 

(MPRA). This includes the scheduled increase in PBGC premiums from $26 per 

participant to $27 per participant effective for plan years beginning in 2016 as well as 

relevant inflationary increases under the MPRA subsequent to 2016. Assumed operating 

expenses are $1,000,000 for the 2016 and 2017 plan years, and $700,000 per year 

thereafter. 

6. The Plan was initially certified in critical status as of January 1, 2009. On October 16, 

2009 the Board of Trustees adopted a Rehabilitation Plan under the guidelines of 432(e), 

which is updated and monitored annually. The Rehabilitation Plan includes certain 

adopted reductions in adjustable benefits effective January 1, 2010, and the 

Rehabilitation Period began January 1, 2012. Based on reasonable actuarial assumptions 

and upon exhaustion of all reasonable measures, the Plan cannot emerge from Critical 

Status, as described in Code Section 432(e)(3)(A)(ii). In 2012, the adopted 

Rehabilitation Plan was updated by the Plan Sponsor to include reasonable measures to 

forestall possible insolvency. 
Secretary of the Treasury 

Board of Trustees of the 

Western States Office and Professional Employees Pension Fund 

March 30, 2016 

Page 6 

Exhibit 2: Page 6 of 16

Comments and Certification 

This certification has been prepared in accordance with our understanding of the requirements of 

Internal Revenue Code Section 432, the Preservation of Access to Care for Medicare 

Beneficiaries and Pension Relief Act of 2010, and the Multiemployer Pension Reform Act of 

2014. To the best of our knowledge, the information supplied in this certification is complete 

and accurate and, in our opinion, the individual assumptions used in the projections: (a) are 

reasonably related to the experience of the Plan and to reasonable expectations; and (b) represent 

our best estimate of anticipated experience under the Plan. 

As an actuary for Rael & Letson, I am a member of the American Academy of Actuaries and 

meet the Qualification Standards of the American Academy of Actuaries to render the actuarial 

opinion contained herein. 

March 30, 2016 __________

Date Paul L. Graf, A.S.A., E.A., F.C.A., M.A.A.A. 

 Enrolled Actuary Number 14-05627 

 Rael & Letson 

999 Third Avenue, Suite 1530 

Seattle, Washington 98104-3853 

(206) 456-3340 

Redacted by the U.S. Department of the 

Treasury
Secretary of the Treasury 

Board of Trustees of the 

Western States Office and Professional Employees Pension Fund 

March 30, 2016 

Page 7 

Exhibit 2: Page 7 of 16

EXHIBIT I 

ACTUARIAL METHODS AND ASSUMPTIONS 

METHODS:

Asset Valuation: Assets are valued according to a method which recognizes 20% of each year’s 

excess (or deficiency) of actual investment return on the Market Value of Assets 

over the expected return on the Market Value of Assets in the year the excess (or 

deficiency) occurs. An additional 20% of the excess (or deficiency) is recognized 

in each of the succeeding four years until it is totally recognized. In no event will 

the Actuarial Value be less than 80% or more than 120% of the Market Value. 

Actuarial Cost Method: Unit Credit Cost Method 

Under this method, we determine the present value of all benefits earned through 

the valuation date. An individual's normal cost is the present value of the benefit 

expected to be earned in the valuation year. The total accrued liability is the sum of 

the individual present values for all participants. The Unfunded Accrued Liability 

is the difference between the accrued liability and the assets of the Trust. If the 

assets exceed the accrued liability, the Plan is in a surplus position. This method 

requires that each year’s contributions be applied first to the normal cost, and the 

balance of the contributions applied to amortize the Unfunded Accrued Liability. 

The normal cost is adjusted at the close of the Plan Year to reflect the actual level of 

contributions received during that Plan Year.
Secretary of the Treasury 

Board of Trustees of the 

Western States Office and Professional Employees Pension Fund 

March 30, 2016 

Page 8 

Exhibit 2: Page 8 of 16

ASSUMPTIONS:

Interest Discount Rate: 7.25% for funding.

Assumed Rate of Return on 

Investments:

7.25% compounded annually, net of all expenses.

Derivation of Net Investment 

Return and Discount Rate for 

FASB ASC 960 Accounting:

The expected return assumptions are established based on a long run outlook and 

are based on past experience, future expectations and professional judgement. We 

have modeled the assumptions based on average long-term future expected returns 

and their respective capital market assumptions as provided by several investment

professionals. Based on the inputs of the Plan’s specific target asset allocation, we 

have established the reasonability of the Plan’s assumption.

Operating Expenses: Assumed covered by investment earnings for 2015. 2016 and later years include 

explicit operating expenses.

Mortality: Healthy Lives: 1983 GAMF Mortality Table

Disabled Lives: 1983 GAMF Mortality Table with ages set forward 17 years until 

age 62

Mortality Improvement: The current mortality assumption, with no mortality improvement reflected, is 

assumed to be reasonable at this time.

Turnover: Table T-7, The Actuary's Pension Handbook. Non-Vested Participants are assumed 

to earn one year of vesting credit annually until vested.

Retirement Rates: Active participants are assumed to retire based on the following rate table:

Age Rate of Retirement

55 20%

56 15%

57-59 12%

60 15%

61 20%

62 40%

63-70 35%

 71+ 100%

Inactive Vested participants are assumed to retire at age 62.

Disability Incidence: 1952 Society of Actuaries Table, Period 2, Benefit 5.

Form of Payment: For those not yet in pay status, all participants are assumed to elect a Life Annuity.

Marital Status: 80% of non-retired participants are assumed to be married. Spouses are assumed to 

be the same age as participants in the population.

Active Employment: Worked at least 200 hours in covered employment.

Future Employment: Each active participant is assumed to work the same amount of hours worked in the 

prior plan year.

Missing Data: If not specified, participants are assumed to be female and the same age as the 

average of participants with the same status code.
Exhibit 2: Page 9 of 16

Western States Office and Professional Employees Pension Fund 

ACTUARIAL METHODS AND ASSUMPTIONS 

METHODS:

Asset Valuation: Assets are valued according to a method which recognizes 20% of each year’s 

excess (or deficiency) of actual investment return on the Market Value of Assets 

over the expected return on the Market Value of Assets in the year the excess (or 

deficiency) occurs. An additional 20% of the excess (or deficiency) is recognized 

in each of the succeeding four years until it is totally recognized. In no event will 

the Actuarial Value be less than 80% or more than 120% of the Market Value. 

Actuarial Cost Method: Unit Credit Cost Method 

Under this method, we determine the present value of all benefits earned through 

the valuation date. An individual's normal cost is the present value of the benefit 

expected to be earned in the valuation year. The total accrued liability is the sum of 

the individual present values for all participants. The Unfunded Accrued Liability 

is the difference between the accrued liability and the assets of the Trust. If the 

assets exceed the accrued liability, the Plan is in a surplus position. This method 

requires that each year’s contributions be applied first to the normal cost, and the 

balance of the contributions applied to amortize the Unfunded Accrued Liability. 

The normal cost is adjusted at the close of the Plan Year to reflect the actual level 

of contributions received during that Plan Year.
Western States Office and Professional Employees Pension Fund 

ACTUARIAL METHODS AND ASSUMPTIONS 

(CONTINUED) 

Exhibit 2: Page 10 of 16

ASSUMPTIONS:

Interest Discount Rate: 7.25% for funding.

Assumed Rate of Return on 

Investments:

7.25% compounded annually, net of all expenses.

Derivation of Net 

Investment Return and

Discount Rate for FASB 

ASC 960 Accounting:

The expected return assumptions are established based on a long run outlook and 

are based on past experience, future expectations and professional judgement. We 

have modeled the assumptions based on average long-term future expected returns 

and their respective capital market assumptions as provided by several investment

professionals. Based on the inputs of the Plan’s specific target asset allocation, we 

have established the reasonability of the Plan’s assumption.

Selection of Demographic 

and Other Noneconomic 

Assumptions for Measuring 

Pension Obligations

The demographic and other noneconomic assumptions are established based on a 

long-term outlook and are based on past actuarial experience, future expectations 

and professional judgment. We believe the current demographic and other 

noneconomic assumptions reasonably reflect anticipated experience for the Plan.

Operating Expenses: Assumed covered by investment earnings for 2015. 2016 and later years include 

explicit operating expenses.

Mortality: Healthy Lives: 1983 GAMF Mortality Table

Disabled Lives: 1983 GAMF Mortality Table with ages set forward 17 years until 

age 62

Mortality Improvement: The current mortality assumption, with no mortality improvement reflected, is 

assumed to be reasonable at this time.

Turnover: Table T-7, The Actuary's Pension Handbook. Non-Vested Participants are assumed 

to earn one year of vesting credit annually until vested.

Retirement Rates: Active participants are assumed to retire based on the following rate table:

Age Rate of Retirement

55 20%

56 15%

57-59 12%

60 15%

61 20%

62 40%

63-70 35%

 71+ 100%

Inactive Vested participants are assumed to retire at age 62.

Disability Incidence: 1952 Society of Actuaries Table, Period 2, Benefit 5.

Form of Payment: For those not yet in pay status, all participants are assumed to elect a Life Annuity.

Marital Status: 80% of non-retired participants are assumed to be married. Spouses are assumed to 

be the same age as participants in the population.

Active Employment: Worked at least 200 hours in covered employment.
Western States Office and Professional Employees Pension Fund 

ACTUARIAL METHODS AND ASSUMPTIONS 

(CONTINUED) 

Exhibit 2: Page 11 of 16

ASSUMPTIONS:

Future Employment: Each active participant is assumed to work the same amount of hours worked in the 

prior plan year.

Missing Data: If not specified, participants are assumed to be female and the same age as the 

average of participants with the same status code.

Withdrawal: Assumed WPAS is not going to withdraw in 2016 and ATPA is going to make 

withdrawal liability payments commencing in 2018.

New Entrant Profile:

New Entrants: New entrants are assumed to enter the Plan to replace participants that terminated 

employment during the year from actively participating employers. This experience 

includes those that are rehired from terminated non-vested and terminated vested 

status. All new entrants are assumed to be female. 
Exhibit 2: Page 12 of 16

Western States Office and Professional Employees Pension Fund 

Projected Total Contribution Base Units and Contribution Rates 

Year Beginning

January 1

Base Accrual 

Contribution

Total Contribution 

Base Units

(Hours)

Average 

Contribution Rate

(Hourly)

2015 5,110,948 1,620,763 3.15

2016 5,028,202 1,591,894 3.16

2017 5,028,202 1,591,894 3.16

2018 5,028,202 1,591,894 3.16

2019 5,028,202 1,591,894 3.16

2020 5,028,202 1,591,894 3.16

2021 5,028,202 1,591,894 3.16

2022 5,028,202 1,591,894 3.16

2023 5,028,202 1,591,894 3.16

2024 5,028,202 1,591,894 3.16

2025 5,028,202 1,591,894 3.16

2026 5,028,202 1,591,894 3.16

2027 5,028,202 1,591,894 3.16

2028 5,028,202 1,591,894 3.16

2029 5,028,202 1,591,894 3.16

2030 5,028,202 1,591,894 3.16

2031 5,028,202 1,591,894 3.16

2032 5,028,202 1,591,894 3.16

2033 5,028,203 1,591,894 3.16

2034 5,028,204 1,591,894 3.16

2035 5,028,202 1,591,894 3.16
Plan Year Beginning 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020

Plan Year Ending 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020

A. Market Value at Beginning of Year 334,216,189 325,212,089 315,692,449 307,255,307 297,556,254

B. Actuarial Value at Beginning of Year 347,973,428 339,099,984 326,887,155 311,859,035 297,556,254

Income

C. Base Contributions 5,028,202 5,028,202 5,028,202 5,028,202 5,028,202

D. Supplemental/Surcharge Contributions 3,343,773 4,022,562 4,022,562 4,022,562 4,022,562

E. Withdrawal Liability Payments 2,161,712 2,381,660 4,668,736 4,667,749 4,667,749

F. Total Investment Income 23,033,076 22,385,080 21,767,412 21,132,974 20,407,254

Disbursements

G. Benefit Payments

 (a) Current Actives 2,151,036 3,006,925 3,775,881 4,435,126 4,984,126

 (b) Current Inactive Vested 1,898,839 2,598,569 3,552,095 4,401,525 5,403,530

 (c) Current Retirees/Beneficiaries 37,520,989 36,731,649 35,896,078 35,013,889 34,084,649

 (d) Future New Entrants - - - - -

 (e) Total 41,570,863 42,337,144 43,224,054 43,850,540 44,472,304

H. Administrative expenses 1,000,000 1,000,000 700,000 700,000 700,000

I. Market Value at End of Year

(A+C+D+E+F-G(e)-H)

 325,212,089 315,692,449 307,255,307 297,556,254 286,509,717

J. Available Resources 

(A+C+D+E+F-H)

 366,782,952 358,029,593 350,479,361 341,406,794 330,982,021

K. Solvency Ratio (J / G(e)) 8.82 8.46 8.11 7.79 7.44

L. Accrued Liability 538,253,063 535,896,307 532,574,628 528,093,067 522,637,397

M. Funded Percentage (MVA) (A / L) 62.09% 60.69% 59.28% 58.18% 56.93%

N. Funded Percentage (AVA) (B / L) 64.65% 63.28% 61.38% 59.05% 56.93%

Western States Office and Professional Employees Pension Fund

Illustration of Projected Cash Flow and Solvency Ratio of the Extended Period

Projection for Plan Years beginning January 1, 2016 through December 31, 2035

Exhibit 2: Page 13 of 16
Western States Office and Professional Employees Pension Fund

Illustration of Projected Cash Flow and Solvency Ratio of the Extended Period

Projection for Plan Years beginning January 1, 2016 through December 31, 2035

Plan Year Beginning 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025

Plan Year Ending 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025

A. Market Value at Beginning of Year 286,509,717 274,141,799 260,602,433 245,935,652 229,915,341

B. Actuarial Value at Beginning of Year 286,509,717 274,141,799 260,602,433 245,935,652 229,915,341

Income

C. Base Contributions 5,028,202 5,028,202 5,028,202 5,028,202 5,028,202

D. Supplemental/Surcharge Contributions 4,022,562 4,022,562 4,022,562 4,022,562 4,022,562

E. Withdrawal Liability Payments 4,667,749 4,655,713 4,652,077 4,652,077 4,652,077

F. Total Investment Income 19,588,171 18,681,885 17,695,180 16,621,687 15,467,824

Disbursements

G. Benefit Payments

 (a) Current Actives 5,475,557 5,906,239 6,282,105 6,617,568 6,916,229

 (b) Current Inactive Vested 6,390,239 7,234,439 8,062,283 9,117,022 9,760,658

 (c) Current Retirees/Beneficiaries 33,108,807 32,087,050 31,020,413 29,910,249 28,758,031

 (d) Future New Entrants - - - - -

 (e) Total 44,974,602 45,227,728 45,364,802 45,644,839 45,434,919

H. Administrative expenses 700,000 700,000 700,000 700,000 700,000

I. Market Value at End of Year

(A+C+D+E+F-G(e)-H)

 274,141,799 260,602,433 245,935,652 229,915,341 212,951,087

J. Available Resources 

(A+C+D+E+F-H)

 319,116,401 305,830,161 291,300,454 275,560,180 258,386,006

K. Solvency Ratio (J / G(e)) 7.10 6.76 6.42 6.04 5.69

L. Accrued Liability 516,141,887 508,654,947 500,362,902 491,327,641 481,347,135

M. Funded Percentage (Using MVA) (A / L) 55.51% 53.90% 52.08% 50.06% 47.76%

N. Funded Percentage (AVA) (B / L) 55.51% 53.90% 52.08% 50.06% 47.76%

Exhibit 2: Page 14 of 16
Western States Office and Professional Employees Pension Fund

Illustration of Projected Cash Flow and Solvency Ratio of the Extended Period

Projection for Plan Years beginning January 1, 2016 through December 31, 2035

Plan Year Beginning 1/1/2026 1/1/2027 1/1/2028 1/1/2029 1/1/2030

Plan Year Ending 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030

A. Market Value at Beginning of Year 212,951,087 195,041,904 176,137,624 156,279,407 135,349,779

B. Actuarial Value at Beginning of Year 212,951,087 195,041,904 176,137,624 156,279,407 135,349,779

Income

C. Base Contributions 5,028,202 5,028,202 5,028,202 5,028,202 5,028,202

D. Supplemental/Surcharge Contributions 4,022,562 4,022,562 4,022,562 4,022,562 4,022,562

E. Withdrawal Liability Payments 4,652,077 4,652,077 4,652,077 4,647,816 4,573,804

F. Total Investment Income 14,247,885 12,960,080 11,604,094 10,177,257 8,679,431

Disbursements

G. Benefit Payments

 (a) Current Actives 7,184,280 7,387,111 7,596,441 7,774,875 7,858,990

 (b) Current Inactive Vested 10,409,705 11,143,505 11,795,415 12,550,528 13,170,845

 (c) Current Retirees/Beneficiaries 27,565,924 26,336,585 25,073,296 23,780,061 22,461,720

 (d) Future New Entrants - - - - -

 (e) Total 45,159,909 44,867,200 44,465,153 44,105,464 43,491,555

H. Administrative expenses 700,000 700,000 700,000 700,000 700,000

I. Market Value at End of Year

(A+C+D+E+F-G(e)-H)

 195,041,904 176,137,624 156,279,407 135,349,779 113,462,223

J. Available Resources 

(A+C+D+E+F-H)

 240,201,813 221,004,825 200,744,559 179,455,244 156,953,778

K. Solvency Ratio (J / G(e)) 5.32 4.93 4.51 4.07 3.61

L. Accrued Liability 470,860,572 459,898,712 448,445,436 436,578,421 424,223,773

M. Funded Percentage (Using MVA) (A / L) 45.23% 42.41% 39.28% 35.80% 31.91%

N. Funded Percentage (AVA) (B / L) 45.23% 42.41% 39.28% 35.80% 31.91%

Exhibit 2: Page 15 of 16
Western States Office and Professional Employees Pension Fund

Illustration of Projected Cash Flow and Solvency Ratio of the Extended Period

Projection for Plan Years beginning January 1, 2016 through December 31, 2035

Plan Year Beginning 1/1/2031 1/1/2032 1/1/2033 1/1/2034 1/1/2035

Plan Year Ending 12/31/2031 12/31/2032 12/31/2033 12/31/2034 12/31/2035

A. Market Value at Beginning of Year 113,462,223 89,194,557 62,959,895 35,065,901 5,122,411

B. Actuarial Value at Beginning of Year 113,462,223 89,194,557 62,959,895 35,065,901 5,122,411

Income

C. Base Contributions 5,028,202 5,028,202 5,028,202 5,028,202 5,028,202

D. Supplemental/Surcharge Contributions 4,022,562 4,022,562 4,022,562 4,022,562 4,022,562

E. Withdrawal Liability Payments 3,037,389 2,142,396 1,521,544 284,000 196,892

F. Total Investment Income 7,064,833 5,298,165 3,404,642 1,381,376 (743,744)

Disbursements

G. Benefit Payments

 (a) Current Actives 7,965,729 8,073,563 8,137,960 8,107,707 8,120,996

 (b) Current Inactive Vested 13,631,003 14,179,245 14,616,333 14,789,818 14,770,614

 (c) Current Retirees/Beneficiaries 21,123,921 19,773,178 18,416,651 17,062,105 15,717,941

 (d) Future New Entrants - - - - -

 (e) Total 42,720,652 42,025,986 41,170,944 39,959,630 38,609,552

H. Administrative expenses 700,000 700,000 700,000 700,000 700,000

I. Market Value at End of Year

(A+C+D+E+F-G(e)-H)

 89,194,557 62,959,895 35,065,901 5,122,411 Insolvent

J. Available Resources 

(A+C+D+E+F-H)

 131,915,209 104,985,882 76,236,845 45,082,041 12,926,323

K. Solvency Ratio (J / G(e)) 3.09 2.50 1.85 1.13 0.33

L. Accrued Liability 411,609,577 398,879,700 385,946,753 372,962,206 360,291,504

M. Funded Percentage (Using MVA) (A / L) 27.57% 22.36% 16.31% 9.40% 1.42%

N. Funded Percentage (AVA) (B / L) 27.57% 22.36% 16.31% 9.40% 1.42%

Exhibit 2: Page 16 of 16