Bricklayers & Allied Cr aftsmen Local No. 7 Pension Plan 

Checklist Item #39 

Does the application include the most recently updated rehabilitation plan? Sec section 7.09. 

Document 39.1 provides a copy of the most recently updated rehabilitation plan. The rehabilitation 

plan does not include more than one contribution or benefit schedule. 

Documents 39.2(1) and 39.2(2) provide the last two valuation repotis, even though the provisions 

of Revenue Procedure 2016-27, Section 7.10, are unclear as to where to include those two repotis 

in this application. 

39. 1 
7.09 Recent Rehabilitation Plan 

See the following pages. 

Document 39.1 

The Most Recently Updated 

Rehabilitation Plan 

39.2 
Background 

lllUCK.LAYEI{S ANI) ALI.IF.O CllAJlTSMt:N 

LOCAL NO. 7 l'.ENSION I' LA!\ 

RF.IfARII.ITATION Pl.AN lll'OA1'E 

lttb11bilit"tioo Puiod: May I, 2009- April 30, 21119 

l'he plan wa.• first ccnificd "' in critical status lot· the Plnn year bcginnmg. Muy I, 2008. The original 

rulmbilitation phon wus udo1>t~u on August II , 200H. In 2009 the Wit EllA li'Co>c ofstnrus \\·as elected and 

an update to the rchnbililnliou t>lnn wns not rC<(Ilii'Cd. 1 his is the updut~ for tim ycu• beginning Muy 1. 

2016. 

llenclit changes. eftectivc Mny I. 

2009 

Funding changes 

Pefnull Sd,..dulc 

• Rcmo'c the 60 month gunn111tcc for partictpants who an: 

not yet rcttrerl 

• Chuug" the c:trly retirement reduction from l'lo per year lo 

7% per year for acthc mumbcn. who arc not e<1rly 

n:ti•·ement eligible (age 55 with 10 years of service) on or 

i>ctoro Mny I, 2009. 

• ElitnimJtc disnhility payments pnynblc prior to an cady 

rctit·omcnt age for active patticipnnK 

• Acgin ch:1rging lor preretirement d~:llh benelit rovcrnge for 

particopanr, not yet in payment. 

• Effccti> e May L 2016. there Will no lonp.cr be all} noncredited contributions. lnstcntl. I he hcnefit accrual r-Jtc witt 

be U.JU% ot t1tc first $6.66 contributed plus I .ll"/o of tbc 

contribut~ rate in excess of $6.6<>. Such a change 1s 

(lmjcclcd to be a net gain forthu hnd ' ince it may ntlrncl 

additionul pnrticir•u•t•, it mny entice current particip11n1s to tuy in the Plun , and will not ncrcu~c the Plun 's (net) 

liu hi ic~ ~~ ew contributions will exceed the value of any 

new benefiL• eumed ....,.. _______ _ 

I An additional noncrcditcd: 

• $0.'10 per hour September I. 20UH 

• $0.40 per I>Our on June I, 2009 

• ,;oAOpcrhouronJunc 1,2010 

• J-0.40 pct· hour on June I. ~() 11 

• $0.40 per hour on June I, 20 12 

• $0.40 per hour on June 1. 20 13 

• $ti.US pCI'flour 011 .fLIIIC I. 20 I •I 

• ~tJ 20 per hour on .June I. 20 IS 

An 01ddi1iunn l credited: 

• $0.14 per hour on June I. 20 16 

• $11.10 pcr hour on June I. 2017 

• SO.I 0 per hour on June I. 201 N 

39.3 
,-----

• $0.10 per hmll'onJunc I, 20 19 

• $0.1 0 P.,'l' hour on June I. 2020 

• $0.111 p<:r hour on Jun~ I. 202_1 __ =I ~M:.:::.::.: lc·l ..:..:;.t,_, o<;t:..::c: P<l!a::;t:::e:::d _______ +C::,?y~...,, ;:-2Q.l 5 /\ct unrial V alu111 ion 

-'c,::::.::s,~•r:.:.cd'7-':;rc,:.::u::n:.::l.;::o:.:.n..:.:::S:::M>:.:..:.-----l 6.15% for 1_1?nr~; 7. ~0% I horn llcr _ 

Assumed ltoture houo1> 125,000 for lhc )Onr end ing AJ>ril 30 , 20 17, 135.000 per year 

l'rojccted slatus al clo"" of 

rchabohlniKJtl period 

chcreallcr 

Critical and 1)(.-clining. l'l:on must make usc of the ''c.xhau,1io;;-' 

nf all reasonable mcnsurc~" chws~ :ol IRC 432(c)(~)(A)(i ). 

Plan musl ul"' mnke use ol hcncfil 'uspcosilons dcscrihed in I 

me '132(c)(9). 

F:xhau~tion of all Rea•onnble Men•ure.~ Under UtC 43l(~)(3)!Al!ill : 

l'he bcnufit chanses in the aho'c detnult schedule mcludc all adjustable benefits otlocr than tto the hcncfi1 

.,,..,d it r.u ... !'he tnos1ccs "" ' ieve any further o-etluct.ion In the hencli1 crcd it nne would damn g.., 1hc a hi lity ol 

1ho PIRn tn reta in onconhcrs And woul\1 11~ ~~>peeled to result In a nc1 decrease in fioturc fu11 di ~. 

·noe original rehabililmion plan ~pecili od that all non-credited CoHLributions ("funding conlribonions") on 

and nf'lcr June I. 211!1') would be retained b) Local 7 ewn fur those working in the jurisdiction hut "ho 

are members of another Local. Thi~ provtsion \\as later n:jL-.:1•-d by the int~mn oonalnnion and mwer took 

cflcct. TI1is provision hns rconnincd in ciTcct, tloough, for members of Lucul 7. 

However, ciTcctivc MA)· I, 20 16. thcrc will no longeo· be 11110n-erc<litcd conll'i~u iu . lnstcnd, 11oe accnta l 

rntc will change to .:u~y, of the lir.,t $6.66 oontribu1cd 11lus 1.0% of' uny cuHLribUiion m1c in e'cc~ uf 

$6.66. B) its na1ure, 1his accntal rott: ch:mgc is paid for solely from additional cnntrtbu1ions (a.< the 

eo<otnbulion ra1c on May I. 2016 wus $6 66). And, the nccrunl rate change doc~ nut increase the Fund's 

nc1 liahilities. 

A comrlhntion inco·ca~c of $0.14 was implemented lor 20 I 1•. The co11lribulion mcreusus tor future years 

urc 1ho mnximum that ihe tntstecs 1-.::lievc could currc111ly be supported wllhou1 hnving a net ncgatiw 

imp.,C1 on 1hc Fund The 1rmoees cuntinue to monitor thi< <ituAtion amluJi h 

l'hc ubovc projections meet I he cl'itcri11 lor forestalling in!>olwncy. Prior 10 the expected IRC 432(c)(9) 

susJ)Cn.<h)n applica1inn, I he plan is cxf)<lc1cd to run ou1 of' assets somctinoc during 1hc plun year ending in 

2021>. llowcver, ihc 1 rus1ccs are likely going co lake advuolluge of 1hc new hcnc fit suspension 1 ulc< 

Re11cfi! Susuension• Umlcr rRC 432!<'lC9l 

noc truslccs have tl~-.: od ... ttha1 the Fund i< not projected to avoid inwlvciiC) unless hcuolils urc reduced 

t"'r"uull "'me 432(c)(Q) wh ich was uddc'(l by chc Multicmploycr Pcnslou R\lli.lm1 Acl of 2014. l'he 

po·opu>.:d oiTectivc dalt: of such suspcu,iun< will likely be May 20 17. lfboncli1s nrc rcducc<l pursuant I<' 

IRC 432(c)(9). the l'u11d is prujc-c1cd 111 uvoid insolvency. 1 he d.:lnils of this filing willth\1 be finali1ed 

un1il June 201 6. 

2 

J9.4 
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the Treasury

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Treasury Redacted by the U.S. Department of the 

Treasury
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Department of the Treasury
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Department of the Treasury Redacted by the U.S. Department of 

the Treasury

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the Treasury

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Treasury
Document 39.2 

The Last Two Valuation Reports 

See the following pages. 

39.8 
BRICKLAYERS AND ALLIED CRAFTSMEN 

LOCAL No. 7 PENSION PLAN 

AKRON, OH 

Actuarial Valuation Report 

For Plan Year Commencing 

May 1, 2014 

39.9 
United Actuarial 

Services, Inc. 

Actudr,c:c; ,·!nd C o n si.JII'.-tnl<> 

December 19, 2014 

Board of Trustees 

Bricklayers and Allied Craftsmen 

Local No. 7 Pension Plan 

Akron, OH 

Dear Trustees: 

We have been retained by the Board of Trustees of the Bricklayers and Allied Craftsmen 

Local No. 7 Pension Plan to perform annual actuarial valuations of the pens'1on plan. 

This report presents the results of our actuarial valuation for the plan year beginning May 

1, 2014. The valuation results contained herein are based on current plan provisions 

summarized in Appendix A, the actuarial assumptions and methods listed in Appendix B 

and on financial statements audited by Yurchyk & Davis CPA's, Inc. Participant data 

was provided by Compensation Programs of Ohio, Inc. While we have reviewed the 

data for reasonableness in accordance with Actuarial Standards of Practice No. 23, we 

have not audited it. The data was relied on as being both accurate and comprehensive. 

This report has been prepared In order to (1) assist the Trustees in evaluating the 

current actuarial position of the plan, (2) determine the minimum required and maximum 

deductible contribution amounts under Internal Revenue Code §431 and §404, (3) 

provide the fund's auditor with information necessary to comply with Accounting 

Standards Codification 960, and (4) document the plan's certified status under Internal 

Revenue Code §432 for the current year and provide the basis to certify such status for 

the subsequent year. In addition, information contained in this report will be used to 

prepare Schedule MB of Form 5500 that is filed annually with the IRS and could be used 

to calculate employer withdrawal liability. We are not responsible, for the use of, or 

reliance upon this report for any other purpose. 

We have prepared this report in accordance with generally accepted actuarial principles 

and practices and have performed such tests as we considered necessary to assure the 

accuracy of the results. The results have been determined on the basis of actuarial 

assumptions that, in my opinion, are appropriate for the purposes of this report, are 

individually reasonable and in combination represent my best estimate of anticipated 

experience under the plan. Actuarial assumptions may be changed from previous 

valuations due to changes in mandated requirements, plan experience resulting in 

changes in expectations about the future, and/or other factors. An assumption change 

does not indicate that prior assumptions were unreasonable when made. For purposes 

of current liability calculations, assumptions are prescribed by regulation or statute. By 

relying on this valuation report, the Trustees confirm they have accepted the 

assumptions contained in the report. 

The results are based on my best interpretation of existing laws and regulations and are 

subject to revision based on future regulatory or other guidance. 

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to such factors as the following: plan experience differing 

from that anticipated by the economic or demographic assumptions, changes in 

I I S90 North Mendi<~ n Streec. Suite 6 I 0 • Carmel. lndia§ljl (!p03?·4S29 • (3 17) 580·8670 • Fi:lx (317}580-8651 

.... , 
Redacted by the U.S. Department of the 

Treasury
PART 1: SUMMARY OF R ESULTS 

5 - Year Summary of Valuation Results 

Changes From Prior Study 

Experience vs. Assumptions 

Rate of Retum on Fund Assets 

Funding Period 

Funded Ratios 

Funding Standard Account 

PPA Funding Status Report 

Projection of Credit Balance and Funded Ratio 

Unfunded Vested Benefits/Employer Withdrawal Liability 

Termination by Mass Withdrawal 

Participant Data Reconciliation 

PART II: SUPPLEMENTAL STATISTICS 

Hours Worked During Plan Year 

Contributions Made During Plan Year 

Contribution Allocation 

Active Information 

Inactive Vested Information 

Retiree lnfonnation 

PART Ill: ASSET INFORMATION 

Fund Investments 

Mar1<et and Actuarial Fund Values 

Flow of Funds 

Investment Gain and Loss 

PART IV: ENROLLED ACTUARY'S R EPORT 

Normal CosUActuarial Liability 

Actuarial Liability Reconciliation/Projection 

Funding Period 

Current Liability 

Full Funding Limit 

Minimum Required Contribution and Full Funding Credit 

Maximum Deductible Contribution 

Reorganization Index 

ASC 960 Information 

APPENDICES 

Plan Provisions 

Actuarial Assumptions and Methods 

Minimum Funding Amortization Bases 

Summary of Endangered and Critical Status Rules 

Glossary of Common Pension Terms 

TABLE OF CONTENTS 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

20 

21 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

Appendix A 

Appendix B 

Appendix C 

Appendix D 

Appendix E 

United Actuarial Servic~, Inc. ·-···---------------------- --

39. 12 
PART I: SUMMARY OF RESULTS 

United Actuarial Services, Inc. 

Page 1 

39. 13 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actllarial Valuation 

5- YEAR SUMMARY OF VALUATION RESULTS 

Actuarial Study 

as of May 1, 2014 2013 2012 2011 2010 

. • ; • • 

• Anticipated contributions are insufficient to pay normal cost and amortize unfunded llablhty . 

PPA Certification 

PPA funded status Critical Critical Critical Critical Critical 

Progress under FIP/RP Yes Yes Yes Yes Yes 

Funded ratio 

PPA certification 0.52 0.53 0.56 0.64 0.69 

Valuation report 0.52 0.53 0.57 0.63 0.68 

Date of first projected funding deficiency 

PPA certification 4/30/15 4/30/14 4/30/13 4/30/12 4/30/11 

Valuation report 4/30/15" 4/30/14 4/30/13 4/30/1 2 4/30/11 

Based on assumptions used for tho crodlt balance projecbon graph as shown on page B·S 

Assets and Liabilities 

Asset values ($ 000) 

Market 18.342 19,101 19.614 21,415 20,654 

Actuarial 18.585 18,694 20.237 22.055 23.588 

Estimated net investment return 

(for preceding plan year) 

On market value 8.27% 8.65% 0.71% 14.16% 29.68% 

On actuarial value 12.16% 3.00% 0.61% 2.16% 21.69% 

Credit balance($ 000) (6.522) (4,191) (2,198) (824) 428 

Unfnd. vsl. ben. ($ 000) 16,987 16,763 15,183 12.686 10,897 

Participants 

Active 104 130 141 131 141 

Inactive vested 128 123 123 129 130 

Receiving benefits 228 224 226 222 217 

Total 460 477 490 482 488 

Unrecorded dates of birth 8 3 3 12 

Average entry age 30.8 30.6 30.8 29.3 30.2 

Average attained age 45.6 45.0 44.4 42.8 43.8 

United Actuaria l Services, Inc. Page 2 

39.14 
Changes in Plan Provisions 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

CHANGES FROM PRIOR STUDY 

The plan provisions underlying this valuation are lhe same as those valued last year. 

Changes in Actuarial Assumptions and Methods 

The actuarial assumptions and methods used in this valuation differ from those used in 

the prior valuation In the following respects: 

• We increased the assumed hourly contribution rate from $6.38 to $6.46 to reflect the 

negotiated increase effective June 1, 2014. 

• We changed the current liability interest rate from 3.66% to 3.61 %. The new rate is 

within established statutory guidelines. 

H is tory of M' a1or AssumptiOns 

Actuarial Study as of May 1, 

Assumption 2014 I 2013 I 2012 I 2011 I 2010 

Future rate of net 8.00% 8.00% 8.00% 8.00% 8.00% 

investment return 

Mortality table RP-2000G RP·2000G RP·2000G UP-94 UP-94 

WIBCA +1 WIBCA +1 W/BCA +1 

Future expenses s 120,000 $120.000 $ 120,000 s 120,000 $100,000 

Average future hourly 

contribution rate 

Credited $2.00 $2.00 $2.00 $2.00 $2.00 

Non-credited 4.46 4.38 3.98 3.58 3.18 

Total $6.46 $6.38 $5.98 $5.58 $5.18 

Average future annual hours 

Vested 1,100 1,100 1,100 1.100 1,100 

Non-vested 800 800 800 800 800 

Average expected retirement age• 

Actives 61.1 61.1 61.0 60.9 60.9 

Inactive vested 61.0 61.2 61.3 61.3 62.0 

Resulting rrom the application of the retirement probabilities shown in Appendix B to active 

partjcipants. 

United Actuarial Services, Inc. Page 3 

39. 15 
Comparing the prior year's 

experience to assumptions 

provides indications as to 

why overall results may differ 

from those, expected. 

experience. 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

EXPERIENCE VS. ASSUMPTIONS 

Actuarial assumptions are used to project 

certain future events related to the pension plan 

(e.g. deaths, withdrawals. investment income, 

expenses, etc.). While actual results for a single 

plan year will rarely match expected experience, 

it is intended that the assumptions will provide a 

reasonable long term estimate of developing 

The following table provides a comparison of expected outcomes for the prior plan year 

with the actual experience observed during the same period. This display may provide 

insight as to why the plan's overall actuarial position may be different from what was 

expected. 

Plan Year Ending 

Apri/ 30, 2014 

Decrements 

Terminations (actual net of rehires) 

Retirements 

Disabilities 

Deaths - pre-retirement 

Deaths - post-retirement 

Asset assumptions 

Rate of net investment retvrn on actvarial value 

Net expenses 

Other demographic assumptions 

Average retirement age from active (new retirees) 

Average retirement age from inactive (new retirees)' 

Average entry age (new entrants) 

Hours worked per vested active 

Hours worked per non-vested active 

T otalflours worked 

Expected 

9.8 

2.0 

0.0 

0.9 

11.4 

8.00% 

$ 120,000 

59.9 

61 .2 

30.6 

1,100 

800 

127,500 

Expected average based on the average for the total group of participants. 

United Actuarial Services, Inc. 

Page 4 

39.16 

Actual 

25 

5 

11 

12.16% 

$91 ,100 

59.4 

62.7 

41.3 

1,041 

535 

101,994 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RATE OF RETURN ON FUND ASSETS 

Historical Rates of Net Investment Return 

40% r-------------------------------------~--~ 

-2C% 

-30% .,; "' ~ ., "' 8 :; ('0 "' 3 ,, w 

8l "' " • "' "' 0 0 0 0 o> O> 0> O> 0 "' g R 0 0 0 "' "' ,,, "' " ~an YeaEndng 

~ 1'1 m 0 0 0 0 0 c ~ 0 

"' N ,. N '" ,., 5 

N 5 

"' 

~ 

0 

"' 

..... r·tlafk&t Value 

-.i--1\CtJ..:nal Va!ua 

....... ~ :<pa<.:teo Reru rn 

Average Rates of Net Investment Return (dollar weighted) 

Return on Market Value Return on Actuarial Value 

Period End ina Avril 30, Period Ending April 30, 

Period 2014 I 2013 2014 I 2013 

One year 8.27% 8.65% 12.16% 3.00% 

5 years 12.89% 3.10% 7.97% 0.97% 

10 years 4.49% 4.82% 2.82% 2.23% 

15 years 2.48% 2.52% 3.52% 4.14% 

20 years 6.1 7% 5.89% 6.1 5% 6.27% 

Page 5 

United Actuarial Services, Inc. ==~==~~~~=-=~--- ·---··-·---------·----- 39.17 
An ultimate target of no more 

than 10 years is recommended 

for the funding period. The 

risk of having future funding 

issues diminishes with a lower 

funding period target. 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1. 2014 Actuarial Valuation 

FUNDING PERIOD 

The funding period is the approximate 

number of years that would be required to 

completely amortize the unfunded actuarial 

liability if future plan experience occurs 

according to the assumptions. The funding 

period is an indicator of the long term 

financial soundness of the pian. Historically, 

funds often targeted a maximum funding 

period of up to 20 years. Today, asset losses are being paid off over a maximum of 15 

years and are the primary driver for ERISA minimum funding. An ultimate target of no 

more than 10 years is recommended. A yet lower, more conservative funding period 

target can be chosen. As the target level drops, the risk of having future funding issues 

also diminishes. 

The funding period may differ from year to year for a number of reasons. If all 

assumptions are exactly realized, the funding period will decrease by one (1) each year. 

Plan experience such as return on fund assets. actual hours worked. turnover, mortality 

and retirement experience, as well as plan amendments and changes in actuarial 

assumptions all have an effect on the funding period. An approximate reconciliation of 

the funding period from the previous study to this one is shown below. 

Funding Period (in years) 

Actuarial study as of May 1, 2013 

Actuarial study as of May 1, 2014 

• Anticipated contributions are insufficient to pay normal cost and 

amortize unfunded liability. 

United Actuarial Services, Inc. 

Page 6 

39. 18 

• 

• 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

FUNDED RATIOS 

The funded ratio 

can be used as 

an indication of 

ongoing funding 

progress 

The present value of vested accumulated benefits is the 

amount that would have to be invested as of the valuation 

date in order to pay. when due. the benefits accrued and 

vested as of the valuation date. This calculation assumes 

fund assets will earn interest at the assumed rate and all other 

aspects of the fund's experience will follow the actuarial 

assumptions. Similarly, the present value of all accumulated 

benefits is the amount necessary to fund all benefits accrued as of the valuation date. 

The extent to which the value of vested, accumulated benefits and total accumulated 

benefits are funded provides a ·snapshor measure of the plan's funded status as of the 

valuation date. The present values shown in this exhibit were determined using the 

same actuarial assumptions as were used to determine the plan's funding period. 

Present Value of Accumulated Benefits! 

Funded Ratios 

Actuarial Study as of May 1, 2014 2013 

Present value of vested accumulated benefits 

Participants currently receiving benefits $ 23,640.628 $ 22,199,582 

Inactive vested participants 6, 173,115 6,054,255 

Active e,articie,ants 5,757,754 7,202.886 

Total 35,571 ,497 35.456.723 

Nonvested accumulated benefits 49,743 40.704 

Present value of all accumulated benefits s 35,621.240 $ 35,497.427 

Actuarial value of assets s 18,584,838 $ 18,693.990 

Funded ratios 

Vested benefits 0.52 0.53 

All accumulated benefits 0.52 0.53 

Interest rate used to value benefits 8.00% 8.00% 

Page 7 

United Actuaria I ~ervic_e:.:s _,c::.:c:.:. ____ ~~~---

39.l9 
The minimum funding 

requirements have not 

been met for the most 

recent plan Y~?[ 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

FUNDING STANDARD ACCOUNT 

The Funding Standard Account is used to determine 

whether the plan meets the minimum funding 

requirements established by ERISA. Such a 

determination is done by subtracting the year's 

charges from the credits. A positive result 

establishes a credit balance that represents the 

amount the plan is in excess of the minimum required contribution on a cumulative 

basis. A negative result represents a funding deficiency which could produce excise 

taxes and actually lead to the forced termination of the plan (unless the plan is following 

a rehabilitation plan under critical status). 

Funding Standard Account charges include the normal cost, which represents the cost of 

benefit accruals in the past year plus assumed expenses. Credits include contributions 

made in the past year and the credit balance. if any, that existed at the end of the 

previous plan year. 

For plans in critical status, the excise tax for failure to meet minimum funding 

requirements is waived assuming the provisions of the rehabilitation plan 

continue to be met. This Includes making adequate progress under the 

rehabilitation plan. 

Funding Standard Account 

Plan Year Ending April 30, 

Charges 

Prior year funding deficiency 

Normal cost 

Amortization charges (see Appendix C) 

Interest on above 

Total charges 

Credits 

Prior year credit balance 

Employer contributions 

Amortization credits (see Appendix C) 

Interest on above 

ERISA full funding credit 

Total credits 

Credit balance (credits less charges} 

Page8 

$ 

$ 

2015 2014 

(Proj ected) (Final) 

6,521,950 $ 4,191,366 

192,228 204,532 

3,508,999 3,645,635 

817,852 643,320 

11,041,029 8,684,853 

660,212 672,704 

1,298,200 1.354,900 

130,263 135,299 

2,088,675 2,162,903 

(8,952,354) $ (6,521 ,950) 

~nite.c:l ActLI.arial Services, Inc:·.:.. ·------------------

39.20 
The plan is in Critical 

status for 2014 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

PPA FUNDING STATUS REPORT 

The Pension Protection Act of 2006 {PPA) 

established the status designations of "Endangered", 

"Seriously Endangered". or "Critical" status and new 

rules that these plans must follow. As the actuary, 

we must certify within 90 days of the beginning of the plan year if the plan has entered 

into one of these status designations. We must also certify if the plan has made 

scheduled progress if it has entered into the funding improvement or rehabilitation 

period. The criteria for these determinations are outlined in Appendix D. Due to the 

timing of the PPA certification(s), it relied on data different from that used in this report 

(see certification letter for additional details). The results are summarized below. 

Endangered, seriously endangered, and critical status plans have to notify all parties 

(participants, employers, unions, PBGC, DOL) of such status within 30 days of the 

actuarial certification and must also set up a plan to improve funding. 

Refer to Appendix D for more detail on funding improvement or rehabilitation plans. 

Failure to meet scheduled progress for three consecutive years operating under a 

rehabilitation plan would trigger an excise tax calculated as if the plan had an 

accumulated funding deficiency equal to the greater of any existing funding deficiency or 

the amount needed to make scheduled progress. Failure to meet scheduled progress at 

the end of a funding improvement plan would trigger an excise tax for seriously 

endangered plans and a potential penalty for endangered plans. 

Values Used for PPA Certification 

Description 2014 I 2013 

Funded ratio 0.52 0.53 

Date of first projected funding deficiency * 4/30/2015 4/30/201 4 

Years of benefit payments in assets 8+ 8+ 

Certified PPA status Critical Critical 

Making progress under FIP/RP Yes Yes 

The funding standard account has had a funding deficiency since 4130/2011 . The end of tho 

cvrrent year is used for determining PPA status. 

Page 9 

39.21 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

PROJECTION OF CREDIT BALANCE AND FUNDED RATIO 

The following graphs provide more information about the two most important statistics 

used in the determination of the PPA Funded Status. The first graph shows the ERISA 

credit balance (a negative credit balance indicates a projected funding deficiency). The 

second graph shows the funded ratio. Both graphs illustrate projected results for the 

next 20 years using the assumptions summarized on page B-5 of the appendix. 

0 

r--..... ~ (10) 

-

---~------------~ ~ 

- c..,uontytlll 

-U:tye.H 

~ 

~ 

~ (40) 

"' 

~ (50) 

i:J 

<••) 

(70l M " "' ~ ~ ~ ~ 0 o; N M ~ 1'3 <S <S <S <S <S IS IS N 0 0 00 N 0 0 0 0 i'l N N j;j 0 0 N 0 0 N 0 0 N N 00 00 

'ie.lr-fiHUil{J 

100~~ 

90% 

60% 

,., 

~ 70% 

~ 60% .., 

:;; 

.. SO% 

-Colloil"'l}ieJOI 

'll 40% L~Stt/UI 

~ 30% ,;: 

?0% 

10% 

0% M ~ ~ ~ ::: IS IS IS 0 0 N oo N N N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Ve.lr OegitllliUU 

United Actuarial Services, Inc. 

Page 10 

39.22 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

UNFUNDED VESTED BENEFITS/EMPLOYER WITHDRAWAL LiABILITY 

An employer withdrawing 

during the coming year may 

have withdrawal liability 

The following table shows a history of the plan's 

unfunded vested benefits required to compute a 

specific employer withdrawal liability under the 

presumptive method. If all unfunded vested 

benefits since the inception of the Multiemployer 

Pension Plan Amendments Act of 1980 (MPPAA) are zero ($0} or less. there will be no 

withdrawal liability assessed to a withdrawing employer. Otherwise, an employer may 

be assessed withdrawal liability payments pursuant to MPPAA. The display does not 

reflect adjustments for prior employer withdrawals. 

In accordance with IRC Section 432(e)(9)(A) and PBGC Technical Update 10-3, the 

impact of reducing adjustable benefits is reflected by adding the unamortized portion of 

the value of affected benefits (VAB) to the most recent year's unfunded vested benefits 

pool. 

Presumptive Method 

Vested Value of Unfunded Unamortized 

April 30, Benefits Vested Asset Value· Vested Portion of 

Interest Rate Benefits Benefits VAB 

1995 7.50% 13,767,943 15,662,094 (1,894,151} 

1996 7.50% 14,979,005 17,173,322 (2,194,317} 

1997 8.00% 16,351,121 21,066,522 (4,715,401) 

1998 8.00% 19,058,282 23,830,467 (4,772,185} 

1999 8.00% 21,320.239 26,730.714 (5,410,475) 

2000 8.00% 24,445,204 29.343,521 ( 4,898,317) 

2001 8.00% 26,000,291 31,034,213 (5,033,922} 

2002 8.00% 27,902,578 30,715.460 (2,812,882) 

2003 8.00% 30,036,998 29,281,868 755,130 

2004 8.00% 30,928,91 1 29,168.067 1.760.844 

2005 8.00% 32,289.274 27,881 ,442 4,407,832 

2006 8.00% 33,853,627 27,199,546 6,654,081 

2007 8.00% 33,998.097 27,255.918 6.742,179 

2008 8.00% 34,672.083 27.249,628 7,422,455 

2009 8.00% 35,484,548 21,019,994 14,464.554 1,722.031 

2010 8.00% 34,484,817 23,588.308 10.896,509 1,658,609 

2011 8.00% 34,740,407 22,054,814 12,685.593 1 ,590,114 

2012 8.00% 35,419,483 20.236.556 15,182,927 1,516,139 

2013 8.00% 35,456.723 18,693,990 16,762,733 1,436.246 

2014 8.00% 35,571,497 18,584.838 16,986.659 1.349,962 

• Market Value through 4/30193; >\ctuanat Value after that date. 

Uni~ed Ac!uarial Services, In£.:. 

Page 11 

39.23 
Under mass withdrawal 

assumptions, plan assets do 

not exceed plan liabilities 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

TERMINATION BY MASS WITHDRAWAL 

If a II employers were to cease to have an 

obligation to contribute to the plan, the plan 

would be considered "terminated due to mass 

withdrawal". In this event, the Trustees would 

have the option of distributing plan assets in 

satisfaction of all plan liabilities through the 

purchase of annuities from insurance carriers or payment of lump sums. If assets are 

insufficient to cover liabilities, a special actuarial valuation pursuant to Section 4281 of 

ERISA would be performed as of the end of the plan year in which the mass withdrawal 

occurred. If the Section 4281 valuation indicates the value of nonforfeitable benefits 

exceeds the value of plan assets, employer withdrawal liability would be assessed. 

The ERISA Section 4281 valuation described above uses required actuarial 

assumptions that are typically more conservative than those used for valuing an ongoing plan. In order to illustrate the impact of the mass withdrawal assumptions. we 

performed an illustrative Section 4281 valuation as if mass withdrawal had occurred 

during the prior plan year. The value of assets used below is market value without any 

adjustments for outstanding employer withdrawal liability claims. As required by 

regulation, interest rates of 3.47% for the first 20 years and 3.64% for each year 

thereafter and the GAM 94 Basic Table projected to 2024 mortality table were used. 

Illustrative Section 4281 Valuation 

as of April30, 2014 

Value of nonforfeitable benefits 

Participants currently receiving benefits 

Inactive vested participants 

Active participants 

Expenses (per Section 4281 of ERISA) 

less: Fund assets {market value) 

$ 

Value of nonforfeilable benefits in excess of (less than) fund assets $ 

United Actuarial Services, Inc. 

Page 12 

39.24 

35.593,724 

13,094,645 

12,807,712 

460,538 

61,956,619 

18.341.720 

43.614,899 
The data reconciliation table 

shows the movement of 

participants from one class 

to another 

Participants Valued 

As Active 

May1,2013 130 

Change due to: 

New hire 4 

Rehire 7 

Termination (32) 

Disablement 

Retirement (5) 

Death/cash out 

New beneficiary 

Certain pd. expired 

Net change (26) 

May 1, 2014 104 

United Actuarial Services, Inc. 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

PARTICIPANT DATA R ECONCILIATION 

The participant data reconciliation table below 

provides information as to how the plan's 

covered population changed since the prior 

actuarial study. Such factors as the number of 

participants retiring, withdrawing and returning 

to work have an impact on the actuarial position 

of the pension fund. 

Inactive Receiving Total 

Vested Benefits Valued 

123 224 477 

4 

(2) 5 

15 (17) 

(8) 13 

{11) (11) 

3 3 

( 1) (1) 

5 4 (17) 

128 228 460 

Page 13 

39.25 
PART II: SUPPLEMENTAL STATISTICS 

Page 14 

!J. ited ~ct_~ ri'!~ervic=.e::.:s~,..!l~n~c.:_ . --------------- 39.26 
Plan Year Ending 

Apri/30, 2014 

Actives 

Vested 

Non-vested, continuing 

Non-vested, new entrant 

Total active 

Others 

Total for plan year 

Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

HOURS WORKED DURING PLAN YEAR 

Hours Average Hours 

Number Worked Worked 

67 69,738 1,041 

33 16,928 513 

4 2,876 719 

104 89,542 861 

65 12,452 192 

169 101,994 604 

History of Actual and Expected Total Hours Worked 

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20 I 5 

United Actuarial Services, Inc: ... Page 15 

39.27 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

CONTRIBUTIONS MADE DURING PLAN YEAR 

Emp Ioyer Credited Contributions Reoorted in Employee Data 

Plan Year Ending Credited 

April 30, 2014 Number Contributions 

Reported 

Actives 

Vested 67 $ 139.476 

Non-vested, continuing 33 33.857 

Non-vested, new entrant 4 5.753 

Total valued as active 104 179,086 

Others 65 24 824 

Total for plan year 169 $ 203.910 

I Average credited hourly contribullon rate $ 2.00 

Comparison with Audited Employer Contributions 

Employer credited contributions reported in data S 203,910 

Adjusted total employer contributions reported* S 650,644 

Total audited employer contributions S 672,704 

Percent reported 97% 

- Adjusted to renect the total contnbutlon rote. The created portion is S2.00 per hour. 

History of Actual and Expected Total Contributions Received 

1.0 

0.9 

0.8 

0.7 

" 0.6 § 

"' 0.5 

2 

0.4 • Expected Confr. 

Ol Wll\labon 

•Exl)ect.edCon!r 

0.2 .. 01 

00 

2005 200& 2007 2008 ?009 2010 2011 2011 20t3 l0t 4 2015 

United Actuarial Services, Inc. 

Page 16 

39.2R 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

CONTRIBUTION ALLOCATION 

The following allocation charts illustrate the percentage of current expected contributions 

required to pay for benefits being earned in the current year as well as the expected 

annual plan expenses, with the remaining portion being applied toward funding of 

accrued benefits. 

Contribution Allocation as of May 1, 2014 

Plan Fundmg 

70% 

Benefil Accrual 

12% 

Contribution Allocation as of May 1, 2013 

Plan Funding 

74% 

_United Aduarial ervic~s. In~:

Benefit Acc1u~l 

t 1% 

Page 17 

39.29 

8% 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTIVE INFORMATION 

Active Participants bv Aae and Service as of May 1, 2014 

Years of Service 

Age <s I s-9 1 10-14 1 1s-19 1 2o-24 1 25-29 1 30-34 1 35-39 1 40+ I Total 

< 25 2 1 - - - - - - - 3 

25-29 6 2 - - - - - - - 8 

30-34 4 1 2 - - - - - - 7 

35-39 7 3 1 - - - - - - 11 

40-44 6 2 3 2 1 - - - - 14 

45-49 3 - 7 6 3 - - - - 19 

50-54 4 2 3 4 6 2 2 1 - 24 

55-59 2 1 2 2 3 1 1 1 1 14 

60-64 2 - - 1 - - - - - 3 

65-69 1 - - - - - - - - 1 

70+ - - - - - - - - - - Totals 37 12 18 15 13 3 3 2 1 104 

Unrecorded 

DOS - - - - - - - - - -

Total 

Active 

Lives 37 12 18 15 13 3 3 2 1 104 

Page 18 

United Actuar_!_al Services, :-:.::. c·~---------------

39.30 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTIVE INFORMATION (CONT.) 

History of Average Actual and Expected Hours Worked per Participant 

1,400 

~ ........... _.... 

~ ~ 

I ~ ~ ........ 

--Ve sted Avg Hrs 

-Vested Hr AMu:np 

-.-~lon- stAvgHrs 

~t.Jon-VS Hr Assump 

1.200 

I ,000 

BOO 

600 

400 

200 

0 

2008 2009 2010 201'1 2012 20'13 2014 2015 

History of Ratio of Actives to Retired Participants 

250 0.70 

0.60 

200 

0.50 ., '150 "' Q) 

0.40 ~ 

~ - ,t..ctJVes 

'100 "' 0.30 ~ ... - Retirees u 

0.20 <( - Act.Ret 

50 

0:10 

0 0.00 

2009 2010 201'1 2012 2013 2014 

United Actuarial Service s, Inc. 

Page 19 

. ... _ ... ·---::-:------------- 39.31 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

INACTIVE VESTED INFORMATION 

Inactive Vested Participants bv Aqe as of Mav 1, 2014 

Estimated Deferred 

Age Group Number Vested Benefits• 

< 30 - $ - 30-34 2 276 

35-39 20 13.032 

40-44 22 21 ,012 

45-49 22 19,535 

50-54 22 24,605 

55-59 19 15.881 

60-64 14 3,738 

65-69 5 1,185 

70+ 2 136 

Totals 128 99,400 

Unrecorded birth date - - Total inactive vested lives 128 $ 99.400 

Amount payable a1 assumed retirement age as used in the valuation process. 

Page 20 

United Actuarial Servic s,_!!:l ~ .. ----------------

39.32 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RETIREE INFORMATION 

B ene f its Being Paid by Form of Payment as of May 1, 2014 

Monthly Benefits Being Paid 

Form of Payment Number Total I Average I Smallest I Largest 

Life only 75 $ 81 ,383 $ 1,085 $ 40 $ 3,946 

Certain & life 18 24,314 1,351 75 3,726 

Joint & survivor 79 117,749 1,490 36 5,665 

Disability 1 1,273 1,273 1,273 1,273 

Beneficiaries 55 20,899 380 17 1,403 

Totals 228 $ 245,618 $ 1,077 $ 17 $ 5,665 

R e t' /fees b A )y 1ge an dF ormo fP aymentas o fM ay 1 2014 ' 

Form of Benefits Being Paid 

Age Life Certain Joint & 

Group Only & Life Survivor Disability Total 

~··- .... ·-~·····M O ....... ·-----··-··-··-·. ----- <55 - - - - - 55-59 3 - 1 1 5 

60-64 10 6 12 - 28 

65-69 8 6 15 - 29 

70-74 15 4 15 - 34 

75-79 17 2 24 - 43 

80-84 12 - 5 - 17 

85-89 8 - 6 - 14 

90-94 1 - 1 - 2 

95+ 1 - - - 1 

Totals 75 18 79 1 173 

plus: Beneficiaries 55 

Total receiving benefits 228 

United Actuarial Services, Inc. 

Page 21 

39.33 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RETIREE INFORMATION (CONT.) 

Age of Participants Retired During Last 5 Plan Years 

(excludes beneficiaries and disability retirements) 

Age at Plan Year Ending April 30, 

Retirement 2014 I 2013 I 2012 I 2011 

---~~·------·--· .... ...... . ········-···-····-···--·· <55 

55 1 

56 1 1 

57 

58 1 

59 1 

60 1 1 

61 

62 4 4 1 

63 1 1 

64 1 

65 2 2 

66+ 1 1 

Totals 13 6 6 

History of Average Retirement Ages 

(excl u d b es ene f' ICianes · · an d d' /Sa b'f' 1 If} retlfements) 

Retirement During Plan Year 

2 

1 

2 

1 

6 

Average 

I 

Ending In: Number Retirement Age 

2014 

2013 

2012 

2011 

2010 

Page 22 

13 

6 

6 

6 

8 

6 1.4 

60.9 

64.6 

61.5 

60.5 

2010 

1 

2 

1 

2 

2 

8 

United ~ctuarial Services, Inc. ·---·-.. ------ - 39.34 
PART Ill: ASSET INFORMATION 

United Actuarial Services, Inc. 

Page 23 

39.35 
Investment Allocation as of Apri/30, 2014 

Total Market Value: $18,341,720 

Fixed Income: 

28% 

Investment Allocation as of Apri/30, 2013 

Total Market Value: $ 19,101,019 

Fixed 11\come: 

30% 

United Actuarial Services, Inc. 

Ca•h/Equlv: 

2% 

Page 24 

39.36 

Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

FUND INVESTMENTS 

Equity: 

63% 
Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

MARKET AND ACTUARIAL FUND VALUES 

Asset information extracted from the fund's financial statements audited by Yurchyk & 

Davis CPA's, Inc. 

Market/Actuarial Value 

of Fund Investments 

as of April 30, 2014 2013 2012 

Invested assets 

Common stocks $ 11 '198,393 $ 8,957,610 $ 9,132,637 

Equity mutual funds 865,899 3.116,829 3,203,427 

Preferred stocks 9,472 

Mutual Funds 5,056,149 5,424,073 5,469,865 

Corporate bonds 127,061 231 ,128 168,522 

US government securities 477,228 867,828 1,022,868 

Money market funds 205,961 179,055 173,172 

Cash 287,323 276,188 313,391 

Pree,aid expenses 1,736 1,605 2,250 

18.229,222 19.054,316 19,486,1 32 

Net receivables• 112,498 46,703 128,214 

Market value $ 18,341,720 $ 19,101,019 $ 19,614,346 

Fund assets ·Actuarial value 

Market value $ 18,341 .720 $ 19,101,019 $ 19,614,346 

less: Deferred investment 

fl.ains and Qosses) (243,118) 407,029 (622,210) 

Actuarial value $ 18.584,838 $ 18,693,990 $ 20,236,556 

Actuarial value as a 

percentage of market value 101.33% 97.87% 103.17% 

' Equals receivables, lass any liabilities 

United Actuarial Service s, Inc. Page 25 

39.37 
Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

FLOW OF FUNDS 

Asset information extracted from the fund's financial statements audited by Yurchyk & 

Davis CPA's, Inc. 

Plan Year Ending 

Apri/30, 2014 2013 2012 

Market value at beginning of 

plan year $ 19,101,019 $ 19,614,346 $ 21 ,415,024 

Additions 

Employer contributions 672,704 761,064 861,825 

Net investment income• 1.486,61 7 1,604,682 145,202 

Other income 4,888 6,568 3,457 

2,164,209 2,372,314 1,010,484 

Deductions 

Benefits paid 2,832,408 2,769,867 2,701 ,601 

Net expenses* 91 '100 115,774 109,561 

2,923,508 2,885,641 2,811 ,162 

Net increase (decrease) (759,299) (513,327) (1 ,800,678) 

Adjustment 

Market value at end of 

plan year $ 18,341,720 $ 19,101,019 $ 19,614,346 

Estimated net investment return 

On market value 8.27% 8.65% 0.71% 

On actuarial value 12.16% 3.00% 0.61% 

Investment expenses have been oflset against gross investment income. 

Page 26 

United Actuarial Services, Inc . ..:=.==..:..::::=:.:::.:..:.::.:..::.:::.:..::.:.::.:::.=...:.:.:.=-- - --·-- .. - ... --.. 

39.38 
Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

INVESTMENT GAIN AND L OSS 

Investment Gain or Loss 

Plan Year Ending April 30, 2014 

Expected market value at end of plan year 

Market value at beginning of plan year 

Employer contributions and non-investment income 

Benefits and expenses paid 

Expected investment income (at8.00% rate of return) 

Actual market value at end of plan year 

less: Expected market value 

Investment gain or (loss) 

History of Gains and L:::o:::;s::,:s::.:e:.::s~)--,--,- ----, 

Plan Year Investment 

Ending Gain 

April 30, or (Loss) 

2014 $ 48,372 

2013 120,255 

2012 (1 ,490, 165) 

2011 1,210,485 

2010 3,603,650 

Total $ 3.492,597 

Deferred Investment Gains and (Losses) 

Pian Year 

$ 

$ 

19,101,019 

677,592 

(2,923.508) 

1,438,245 

18,293,348 

18,341,720 

18,293.348 

48,372 

Ending Amount of Gain or (Loss) Deferred as of April 30, 

April 30, 2014 I 2015 I 2016 I 2017 

2014 $ 38,698 $ 29,023 $ 19,349 $ 9,674 

2013 72,153 48,102 24,051 - 2012 (596,066) (298,033) - - 2011 242,097 - - - Totals $ (243,11 8) $ (220,908) $ 43,400 $ 9,674 

ited Actuarial Services, Inc. 

Page 27 

·--.. -·---·------- 39.39 
PART IV: ENROLLED ACTUARY'S REPORT 

United Actuarial Services, Inc. 

Page 28 

----···--··---------- -·-- 39.40 
Enrolled Aclllary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

NORMAL COST/ACTUARIAL LiABILITY 

For Funding For ERISA 

Normal Cost as of May 1, 2014 Period Funding 

Active participants - service prior to valuation date $ 42,920 $ 

Active participants - service after valuation date 11,984 76,843 

Anticipated administrative expenses (beg. of year) 115,385 11 5.385 

Total normal cost $ 170,289 $ 192,228 

Unfunded Actuarial Liability as of For Funding For ERISA 

May 1, 2014 Period Funding 

Actuarial liability 

Participants currently receiving benefits $ 23,640.628 $ 23.640,628 

Inactive vested participants 6, 173,115 6 ,173,115 

Active participants - service prior to val. date 5,710,564 5,807,497 

Active participants -seNice after val. date 515,253 

36,039.560 35,621,240 

less: Fund assets (actuarial value) 18,584,838 18,584,838 

Unfunded actua ll ia ~ 1not less than Ol $ 17,454,722 $ 17,036,402 

United Actuarial Services, Inc. Page 29 

39.4 1 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTUARIAL LIABILITY RECONCILIATION/PROJECTION 

Reconciliation of Unfunded Actuarial Liability 

Expected unfunded actuarial liability as of April 30, 2014 

Unfunded actuarialliability as of May 1, 2013 

Normal cost 

Actual contributions 

Interest to end of plan year 

Increase (decrease) due to: 

Experience (gain) or loss 

Plan amendment 

Change in actuarial assumptions 

Change in actuarial method 

Net increase (decrease) 

Unfunded actuarial liability as of May 1. 2014 

Projection of Actuarial Liability to Year End 

Actuarial liability as of May 1. 2014 

Expected increase (decrease) due to: 

Norma/cost 

Benefits paid 

Interest on above 

Interest on actuarial liability 

Net expected increase (decrease) 

Expected actuarial liability as of April 30. 2015 

United Actuarial Services, Inc. 

Page 30 

3~.42 

$ 

$ 

$ 

$ 

For ERISA 

Funding 

16,803.437 

204,532 

(672,704) 

1.333,725 

17,668.990 

(632.588) 

(632,588) 

17.036,402 

For ERISA 

Funding 

35,621,240 

192,228 

(3, 1 08.662) 

(1 08,968) 

2,849.699 

(175.703) 

35,445.537 
Funding Period Calculation 

Actuarial Study as of May 1, 

Unfunded actuarial liability 

Actuarial liability 

less: Fund assets (actuarial valuel 

Funds available to amortize unfunded 

Anticipated contributions (beg. of yr.) 

less: Total normal cost 

Fund n~ eeriod (~ears~ 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

FUNDING PERIOD 

2014 2013 

$ 36,039,560 $ 36,005,619 

18,584,838 18,693,990 

17,454,722 17,311,629 

634,819 782,163 

170,289 183,843 

$ 464,530 $ 598,320 

• • 

• Anticipated contributions are insufficient to pay normal cost and amortize unfunded liability. 

Page 31 

_, __ ,_,_,, __________ _ 39.43 
Current Liability as of May 1, 2014 

Vested current liability 

Participants currently receiving benefits 

Inactive vested participants 

Active participants 

Nonvested current liability 

Inactive vested participants 

Active participants 

Total current liability 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

CURRENT LIABILITY 

$ 

$ 

34,260,776 

12,778.588 

11 ,969,141 

59,008.505 

97,340 

97,340 

59,105,845 

Projection of Current Liability to Year End 

Current liability as of May 1, 2014 

Expected increase (decrease) due to: 

Benefits accruing 

Benefits paid 

Interest on above 

Interest on current liabilitv 

Net expected increase (decrease) 

Expected current liability as of April 30, 2015 

Page 32 

United Actuarial Se rvices, Inc. 

$ 

$ 

59.105,845 

292,830 

(3,1 08,662) 

(45,540) 

2.133,721 

(727,651) 

58,378,194 

- ·---···------------ 39.44 
Projection of Assets 

for Full Funding Limit 

Asset value as of May 1, 2014 

Expected increase (decrease) due to: 

Benefits paid 

Investment income 

Net expected increase (decrease) 

Expected value as of April 30. 2015' 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

FULL FUNDING LiMIT 

Market Actuarial 

Value Value 

$ 18,341,720 $ 18,584,838 

(3, 108,662) (3, 108,662) 

1,342,991 1,362,441 

(1,765,671) (1 ,746,221) 

$ 16,576,049 $ 16,838,617 

Ignoring expected employer contributions (as required by regulation). 

For For 

Full Funding Limit Minimum Maximum 

as of April 30, 2015 Required Deductible 

ERISA full funding limit (not less than 0) 

Actuarial liability s 35,445,537 $ 35,445,537 

less: Assets (lesser of market or actuarial} 16,576,049 16,576,049 

[!Ius: Credit balance (wlinterest to rear end) n/a 

18,869,488 18,869,488 

Full funding limit override 

(not less than 0) 

90% of current liability 52,540,375 52,540,375 

less: Assets (actuarial value) 16,838,617 16,838,617 

35,701 ,758 35,701,758 

Full funding limit (greater of ERISA limit 

and full undin ~ overridej $ 35,701 ,758 $ 35,701,758 

I:Jnit~d ~ctuarial Services, Inc. 

Page 33 

39.45 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

MINIMUM REQUIRED CONTRIBUTION AND FULL F UNDING CREDIT 

Minimum Required Contribution 

Plan Year Beginning May 1, 2014 

Minimum funding cost 

Total normal cost 

Net amortization of unfunded liabilities 

Interest to end of plan year 

Full funding limit 

Net charge to funding std. acct. (lesser of above) 

less: Credit balance with interest to year end 

Minimum Required Contribution (not less than Ot 

$ 

$ 

192,228 

2,210,799 

192,241 

2 .595.268 

35.701,758 

2.595,268 

(7.043,706) 

9.638,974 

• Excise taxes that would otherwise apply in the case of a negative credit balance are waived U the 

provisions o f the rehabilitation plan are followed and tho plan continues to make scheduled progress 

Full Funding Credit to Funding Standard 

Account Plan Year Ending Apri/30, 2015 

Full funding credit (not less than 0) 

Minimum funding cost (n.c., amort., in/.) 

less: full funding limit 

Page 34 

United Actuarial Services, Inc. 

39.46 

$ 

$ 

2,595,268 

35,701,758 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

MAXIMUM DEDUCTIBLE CONTRIBUTION 

The maximum amount of tax-deductible employer contributions made to a pension plan 

is determined in accordance with Section 404(a) of the Internal Revenue Code. For a 

multiemployer pension plan, Section 413(b)(7) of the Internal Revenue Code and IRS 

Announcement 98·1 provide that. if anticipated employer contributions are less than the 

deductible limit for a plan year, then all employer contributions paid during the year are 

guaranteed to be deductible. If anticipated employer contributions exceed the deductible 

limit, the Trustees have two years from the close of the plan year in question to 

retroactively improve benefits to alleviate the problem. 

Maximum Deductible Contribution 

Plan Year Beginning May 1, 2014 

Preliminary deductible limit 

Total normal cost 

10-year limit adjustment (using "fresh start" alternative) 

Interest to end of plan year 

Full funding limit 

Maximum deductible contribution override 

140% of vested current liability projected to Apri/30, 2015 

less; Actuarial value of assets projected to April 30, 2015 

Maximum deductible contribution* 

Anticipated employer contributions 

$ 192,228 

2,350,858 

203,447 

2,746,533 

35,701,758 

81 ,594,873 

16,838,617 

64,756,256 

$ 64,756,256 

$ 660,212 

Equa•s the lesser of the preliminary deductible limit and the full funding limit, but not less than the 

maximum deductible oontribulion override. 

United Actuarial Services, Inc. 

Page 35 

39.47 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuanal Valuation 

REORGANIZATION INDEX 

Financially troubled multiemployer plans are considered to be in a status of 

"reorganization" under certain conditions and become subject to special rules regarding 

funding and adjustments in accrued benefits. As defined in ERISA Section 4241, a plan 

Is In reorganization if the reorganization index is greater than zero. The reorganization 

Index is the excess of the vested benefits charge over the net charge to the funding 

standard account (FSA). The reorganization index is calculated according to the 

·current valuation• option described in ERISA Section 4241(b)(4)(A)(i)(ll). 

Reorganization Index 

Plan Year Ending April 30, 2014 

Value of vested benefits in pay status as of April 30, 2014 

Value of all vested benefits as of April 30, 2014 

Assets as of April 30, 2014* 

Unfunded vested benefits ( UVB) in pay status 

Unfunded vested benefits not in pay status 

Vested benefits charge 

10 year amortization of UVB in pay status 

25 year amortization of UVB not in pay status 

Net charge to the FSA as of April 30, 2014 

Total normal cost 

Charges to tile FSA 

less: credits to the FSA 

Vested benefits charge Jess net charge to FSA 

Reorganization index (preceding value, not less than zero) 

Plan in reorganization for plan year ending April 30, 2014? 

Actuarial value 

United Actuarial Services, Inc. 

Page 36 

J9.48 

$ 23,640,628 

35,571,497 

18,584,838 

5,055,790 

11,930,869 

697,650 

1,034,879 

1.732,529 

204,532 

3,645,635 

1 354,900 

2,495,267 

(762,738) 

$ 

NO 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ASC 960 INFORMATION 

The following displays are intended to assist the fund's auditor in complying with 

Accounting Standards Codification 960. The results shown are not necessarily 

indicative of the plan's potential liability upon termination. 

Present Value of Accumulated Benefits 

Actuarial Study as of May 1, 2014 

Present value of vested accumulated benefits 

Participants currently receiving benefits s 23,640,628 

Other e,articie,ants 11,930,869 

35,571.497 

Nonvested accumulated benefits 49,743 

Present value of all accumulated benefits $ 35.621,240 

Market value of plan assets $ 18.341,720 

Interest rate used to value benefits 8.00% 

Changes in Present Value of Accumulated Benefits 

Present value of accumulated benefits as of May 1 . 2013 

Increase (decrease) due to: 

Plan amendment 

Change in actuarial assumptions 

Benefits accumulated and experience gain or loss 

Interest due to decrease in discount period 

Benefits e,aid 

Net increase (decrease) 

Present value of accumulated benefits as of May 1 • 201 4 

Uni!f::.~ .. A-:.tuarial Services, Inc. Page 37 

39.49 

$ 

$ 

$ 

$ 

$ 

2013 

22,199,582 

13,257,141 

35,456,723 

40,704 

35,497,427 

19,101 ,019 

8.00% 

35,497,427 

116.427 

2,839,794 

(2,832,408) 

123,813 

35,621 ,240 
APPENDICES 

United Actuarial Services, Inc -------

39.50 
Origins/Purpose 

Appendix A - Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

PLAN HISTORY 

The Bricklayers and Masons Local Union No. 7 Pension Plan was established effective 

February 1, 1968 as a result of a Collective Bargaining Agreement between the 

Associated General Contractors of America, Akron Chapter, the General Contractors 

Association of Akron and Akron Masons Contractors Association and the Bricklayers' 

and Masons' Local No. 7, Ohio of Bricklayers, Masons and Plasterers International 

Union of America. The Bricklayers' and Masons Local No. 23 became a Participating 

Union under the Plan as of July 1, 1969 and the Bricklayers' and Masons' Local No. 13 

became a Participating Union under the Plan as of April 22, 1970. Both Locals have 

since merged into Local No. 7. 

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management. 

The purpose of the pension plan is to provide Normal and Early Retirement Benefits, 

Total and Permanent Disability Benefits, Joint and Survivor Benefits, Deferred Vested 

Benefits and Death benefits. Benefits first became payable on February 1, 1968. 

Employer Contributions 

The Pension Plan is financed entirely by contributions from the employers as specified in 

the Collective Bargaining Agreements. The history of recent hourly contribution rates is 

shown in the following table: 

• 

Reciprocity 

I Hourly ContribCition 

Effective Date Rate' 

May 1, 1979 $0.80 

June1, 1981 1.05 

June 19, 1982 1.25 

June 1, 1983 2.00 

June 1, 1984 3.00 

June 1, 1990 3.27 

June 1, 1996 3.30 

June 1, 2006 3.55 

June 1, 2007 4.01 

Sept. 1, 2008 4.41 

June 1, 2009 4.81 

June 1, 2010 5.21 

June 1, 2011 5.61 

June 1, 2012 6.01 

June 1, 2013 6.41 

June 1, 2014 6.46 

Effect1ve (\•lay 1. 2006. Ol\ly $2.00 of the hourly rate v. n be 

used to calculale b€t ~fi l$. 

The Trustees have entered into various money follows the man reciprocity agreements 

whereby a participant who transfers employment between signatories to such 

agreements will not lose pension credits. 

United Actuarial Services, Inc. Page A-1 

39.51 
Participation 

Year of service 

Break in service 

Forfeited service 

Normal retirement benefit 

Eligibility 

Monthly amount 

Early retirement benefit 

Eligibility 

Monthly amount 

Optional forms of 

payment 

Appendix A - Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

SUMMARY OF PLAN PROVISIONS 

May 1 following completion of 435 hours during a twelve 

consecutive month period, or prior November 1, if earlier. 

Plan year with at least 435 hours. 

Plan year with less than 435 hours. 

A non-vested participant with a number of consecutive 

breaks in service equaling the greater of 5 or his years of 

service. A vested participant cannot forfeit his years of 

service. 

Age 62 and 5 years of service or. if earlier, age 65 and 5 

years of participation. 

$1.00 per year of past service plus 4.10% of employer 

contributions made on and after February 1, 1968 and 

before May 1, 2003 plus 3.00% of employer contributions 

made on and after May 1. 2003 and before May 1, 2005 

plus 1. 00% of employer contributions made on and after 

May 1 . 2005 and before May 1, 2006 plus 1.00% of $2.00 

of employer contributions made on and after May 1. 2006. 

Payable for life. 

Age 55 and 10 years of service. 

Normal, reduced by .5833% for each month under age 

62. Payable for life. 

• Normal, reduced by 113 of 1% for each month under age 

62 for benefits of participants who were at least age 55 

and had at least 10 years of service on May 1. 2009. 

• 60 month certain and life 

• Joint and 50% survivor• 

• Joint and 75% survivor• 

• Joint and 100% survivor* 

' If spouse pre-deceases participant, amount in pay 

status pops-up to benefit amount that would have 

been payable if the participant had not elected the 

joint and survivor annuity. The cost of the pop-up 

feature is not subsidized by the fund. 

Page A-2 

United Actu~ rial Serv~e~<_l n,..! :__ ______________ _ 

39.52 
Total and permanent 

disability benefit 

Eligibility 

Deferred vested benefit 

Eligibility 

Monthly amount 

Pre-retirement surviving 

spouse benefit 

Eligibility 

Monthly amount 

Eligibility 

Monthly amount 

Pre-retirement 5 year 

certain death benefit 

Eligibility 

United Actuarial Services, Inc. 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

SUMMARY OF PLAN PROVISIONS (CONTINUED) 

No longer available as of May 1, 2009. 

5 years of service. termination of covered employment. 

100% of normal. payable at normal or at early with 

reduction. Payable for life. 

Death of participant with eligible spouse after becoming 

eligible for, but prior to, retirement. 

50% of participant's joint and 50% survivor annuity 

payable to spouse for life commencing the first day of the 

month following participant's death. 

Death of participant with eligible spouse prior to earliest 

retirement age. 

50% of participant's joint and 50% survivor annuity 

payable to spouse for life commencing at participant's 

earliest retirement date. 

• The cost of the pre-retirement surviving spouse benefit 

is paid by the participant. 

Benefit eliminated for deaths on or after May 1 , 2009. 

effective lvlay 1, 2009. 

Page A-3 

39.53 
Future service benefit 

Effective date 

Adoption date 

Provisions 

Thirteenth check 

Effective date 

Adoption date 

Provisions 

Vesting schedule 

Effective date 

Adoption dale 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

May 1, 1996 

Appendix A - Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RECENT PLAN MODIFICATIONS 

December 6, 1996 

The future service benefit accrual rate was increased 

from 3.20% to 3.30% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1996. The increase applies to active participants 

as well as inactive vested participants. 

January 1 , 1997 

December 11 , 1997 

Participants receiving benefits received a one-time 13'h 

check equal to the full amount of the monthly benefit or 

$100. whichever is greater. 

May 1. 1997 

June 4, 1997 

Vesting changed from a 5/1 0-year graded schedule to a 

5-year cliff schedule for active participants who work one 

hour after the effective date. 

May 1, 1997 

March 6, 1998 

The future service benefit accrual rate was increased 

from 3.3% to 3.85% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1997. The increase applies to active participants 

only. 

Page A-4 

_l:,lnited __ t\!:~ uar:~ai _, ::..!e!::. ce::.~s,'-.!.! ln..::c c_------------ ·-·-·-·-·-----

39.54 
Retiree increase 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption dare 

Provisions 

Retiree increase 

Effective date 

Adoption date 

Provisions 

Thirteenth check 

Effective date 

Adoption date 

Provisions 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED) 

May 1. 1997 

March 6. 1998 

The monthly benefits being paid to retirees who retired 

prior to May 1, 1997 were increased 5%. 

May 1, 1998 

December 4, 1998 

The future service benefit accrual rate was increased 

from 3.85% to 4.05% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1998. The increase applies to active participants 

only. 

May 1. 1998 

December 4, 1998 

The monthly benefits being paid to retirees who retired 

prior to May 1, 1998 were increased 4%, with a minimum 

of $10. 

December 1, 1998 

December 4, 1998 

Participants receiving benefits received a one-time 13'" 

check equal to the full amount of the monthly benefit or 

$50, whichever is greater. 

Page A-5 

~nited Actua_rial S~vi~e.s._!'.._l ----------------- ------

39.55 
Normal retirement age 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

Retiree increase 

Effective date 

Adoption date 

Provisions 

Early retirement factor 

Effective date 

Adoption date 

Provisions 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED) 

May 1, 1997 

March 5, 1999 

Normal retirement age was changed from age 62 and 1 0 

years of service to age 62 and 5 years of service. 

May 1, 1999 

February 24, 2000 

The future service benefit accrual rate was increased 

from 4.05% to 4.10% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1999. The increase applies to active participants 

only. 

May 1, 1999 

February 24. 2000 

The monthly benefits being paid to retirees who retired 

prior to May 1, 1999 were increased 5%, with a minimum 

of $1 o. 

May 1, 1999 

February 24, 2000 

The early retirement factor was changed from Y. of 1% to 

1/3 of 1% for each month under age 62 for participants 

who earn at least one hour of service on or after 

May 1, 1999. 

Page A-6 

U!:'ited Act':!..ari<,!l Serv=ic:.:e:.:s"'-'l:.:.n:.:c:..: __________ _ 

39.56 
Thirteenth check 

Effective date 

Adoption elate 

Provisions 

Joint and 100% Option 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RECENT PLAN M ODIFICATIONS (CONTINUED) 

December 1, 1999 

February 24, 2000 

Participants receiving benefits received a one-time 131

" 

check equal to one-half the amount of the monthly benefit 

or $50, whichever is greater. 

January 1, 2000 

February 24, 2000 

A Joint and 100% survivor option was added. 

May 1, 2003 

January 10, 2003 

The future service benefit accrual rate was decreased 

from 4.10% to 3.00% for employer contributions made 

after May 1, 2003 for participants who retire or become 

disabled on or after May 1, 2003. The decrease applies 

to active participants only. 

May 1, 2005 

February 11, 2005 

The future service benefit accrual rate was decreased 

from 3.00% to 1.00% for employer contributions made 

after May 1 , 2005 for participants who retire or become 

disabled on or after May 1, 2005. The decrease applies 

to active participants only. 

Page A-7 

United Actuarial ervice~''- .:.: '------------------ -- -----

39.57 
Future service benefit 

Effective date 

Adoption dale 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

Optional form of benefit 

Effective date 

Adoption date 

Provisions 

United Actuarial Services, Inc. 

Appendix A - Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED) 

May 1, 2006 

March 10, 2006 

The future service benefit accrual rate was increased 

from 1.00% to 1.50% for employer contributions made 

after May 1, 2006, but only $3.00 of the hourly 

contribution rate will be used to calculate benefits. The 

decrease applies to active participants who retire or 

become disabled on or after May 1, 2006. 

May 1, 2006 

April 7, 2006 

The future service benefit accrual rate was decreased 

from 1.50% of $3.00 to 0.00% for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The decrease 

applies to active participants only. 

May 1, 2006 

May 5, 2006 

The future service benefit accrual rate was increased 

from 0.00% to 1.00% of $2.00 for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The increase 

applies to active participants only. 

January 1, 2008 

September 7, 2007 

A qualified joint and 75% benefit option was added. 

Page A-8 

39.58 
Early retirement factor 

Effective date 

Adoption date 

Provisions 

60 month guarantee postretirement death benefit 

Effective date 

Adoption date 

Provisions 

Pre-retirement 5 year 

certain death benefit 

Effective date 

Adoption date 

Provisions 

Total and permanent 

disability benefit 

Effective dale 

Adoption dale 

Provisions 

Pre-retirement surviving 

spouse benefit 

Effective date 

Adoption date 

Provisions 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED} 

May 1, 2009 

September 22, 2008 

The early retirement factor was changed from 1/3 of 1% 

to .5833% for each month under age 62. Participants who 

are at least age 55 and have at least 1 0 years of service 

on May 1, 2009 will use the 1/3 of 1% reduction. 

May 1, 2009 

September 22, 2008 

The 60 month guarantee post-retirement death benefit is 

removed for participants not yet in pay status on May 1, 

2009. 

May 1, 2009 

September 22, 2008 

The pre-retirement 5 year certain death benefit is 

removed for deaths after May 1, 2009. 

May 1, 2009 

September 22, 2008 

The total and permanent disability benefit is eliminated for 

disabilities after May 1, 2009. 

May 1, 2009 

September 22, 2008 

The cost is paid by the participant. 

PageA-9 UJ1ited Actuarial Services! ln.~.:..- ---·-- .. -------------- 39.59 
Appendix B. Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTUARIAL ASSUMPTIONS 

The following assumptions are used throughout this report except as specifically noted 

herein. 

Valuation date 

Interest rates 

ERISA rate of return 

used to value liabilities 

Current liability 

Operational expenses 

Mortality 

Assumed plan mortality 

Current liability 

May1,2014 

8.0% per year after investment expenses. 

3.61% (in accordance with Section 431 (c)(6) of the 

Internal Revenue Code). In the opinion of the actuary, 

this assumption is appropriate for a settlement 

measurement but is not an appropriate long term interest 

rate for measuring liabilities under ERISA. 

$120,000 per future year. 

RP-2000 Combined Healthy Generational Mortality Table 

projected using scale AA with blue collar adjustment, set 

forward one year for males and females, · specimen rates 

shown below for a participant born in 1970: 

Mortality Rates 

Age Males Females 

25 

35 

45 

55 

65 

75 

85 

95 

.0004 

.0011 

.0015 

.0031 

.01 10 

.0249 

0853 

.2488 

.0002 

.0005 

.0011 

.0026 

.0099 

.0233 

.0697 

.1800 

Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males 

and females as required by Section 431 (c)(6) of the 

Internal Revenue Code. 

Page B-1 

United Actuarial Servicest !'.":.:C:.:.·- --------- ----

39.60 
Special withdrawal rates 

for first 3 years of 

employment 

Withdrawal 

Future retirement rates 

Active lives 

Inactive vested lives 

Appendix B - Actuarial Assump/ions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

A CTUARIAL ASSUMPTIONS (CONTINUEEO) 

Year of 

Employment 

First 

Second 

Third 

Annual 

Withdrawal 

Rate 

.3500 

.2500 

.1500 

T-8 Turnover Table from The Actuary's Pension 

Handbook (less GAM 51) adjusted after age 49 -

specimen rates shown below: 

Withdrawal 

Age Rate 

25 .1162 

30 .1121 

35 .1055 

40 .0940 

45 .0754 

50 .0531 

55 .0190 

60 .0100 

62 .0100 

When eligible and according to the following schedule: 

Retirement 

Age Rate 

55-59 .05 

60 .10 

61 .25 

62+ 1.00 

Resulting in an average expected retirement age of 61.1. 

If terminated prior to 5/1/99, later of normal retirement age 

or age on valuation dale. If terminated after 5/1/99, later 

of earliest retirement age or age on valuation date. 

Page B-2 

United Actuarial Services, In~_,_, -------

39.6 1 
Future Annual Hours 

Worked 

Vested lives 

Non-Vested lives 

Appendix B • Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTUARIAL A SSUMPTIONS (CONTINUED) 

1,100 hours. 0 after assumed normal retirement age. 

800 hours, 0 after assumed normal retirement age. 

Future hourly contribution $6.46 

rate 

Age of participants with Based on average entry age of participants with recorded 

unrecorded birth dates birth dates and same vesting status. 

Spouse assumptions 

Inactive vested lives over 

age 70 

QDRO benefits 

Section 415 limit 

assumptions 

Dollar limit 

Assumed form of 

payment for t110se limited 

by Section 415 

Benefits not valued 

100% assumed married with the male spouse 3 years 

older than his wife. 

Continuing inactive vested participants over age 70 are 

assumed deceased and are not valued. 

Benefits to alternate payee included with participant's 

benefit until payment commences. 

$210,000 per year. 

Qualified joint and 100% survivor annuity. 

Pre-retirement death benefits following withdrawal or 

disability for active participants. 

Page B-3 United Actuarial Services, Inc. -===-::..=;=.:::.:.=c:...=:.=..::..:.==-=~------ --- _,. --.. -· -- -------·-----

39.62 
Appendix B ·Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS 

The non prescribed actuarial assumptions were selected to provide a reasonable long 

term estimate of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for 

the selection of each non-prescribed assumption that has a significant effect on the 

valuation results. 

ERISA rate of return used Future rates of return were modeled based on the Plan's 

to value liabilities current investment policy asset allocation and composite, 

long-term capital mari<et assumptions taken from Horizon 

Actuarial's 2014 survey of investment consultants. 

Mortality 

Retirement 

Withdrawal 

Future hours worked 

Based on lhis analysis, we selected a final assumed rate 

of 8.00%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities. 

The RP 2000 fully generational, combined healthy 

mortality table was chosen as the base table for this 

population. Projected mortality improvement was 

determined using Scale AA. 

Based on the industry of plan participants, the blue collar 

adjustment was applied. 

Finally, a 1-year set forward was applied. This was based 

on data of larger plans in similar industries. 

Actual rates of retirement by age were last studied for this 

plan for the period 1999 to 2005. No further adjustments 

were deemed necessary at this time. 

Actual rates of withdrawal by age were last studied for 

this plan for the period 2006 to 2010. No further 

adjustments were deemed necessary at this time. 

Based on review of recent plan experience adjusted for 

anticipated future changes in workforce. 

Page 8·4 

3963 
Appendix B • Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTUARIAL ASSUMPTIONS U SED FOR PROJECTIONS 

The assumptions used for the credit balance and funding ratio projections are the same 

as used throughout the report with the following exceptions. 

Assumed return on fund 

assets 

Current year projections 8.00% 

Prior year projections 8.00% 

Future total hours worked 

Current year projections 102,200 for the plan year ending 2015 and thereafter 

Prior year projections 127,500 for the plan year ending 2014 and thereafter 

Contribution rate 

increases 

Current year projections 

Prior year projections 

Plan changes 

Current year projections 

Prior year projections 

United Actuaria l Se rvices, Inc. 

None 

Remaining prorata portion of June 1, 2013 increase. 

None 

None 

Page 8·5 

39.64 
Funding method 

Funding period 

ERISA Funding 

Population valued 

Actives 

Inactive vested 

Retirees 

Asset valuation method 

Actuarial value 

Unfunded vested 

benefits 

Appendix B • Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

ACTUARIAL METHODS 

Individual entry age normal with costs spread as a level 

dollar amount over service 

Traditional unit credit cost method, effective May 1, 2007. 

Employees who have satisfied the plan's eligibility 

requirements (435 hours worked in a plan year) and who 

had at least one hour during the preceding plan year. 

Vested participants with no hours during the preceding 

plan year. 

Participants and beneficiaries in pay status as of the 

valuation date. 

Smoothed Market Value Method with phase in effective 

May 1, 1996. Each year's gain (or loss) is spread over a 

period of 5 years. The actuarial value is limited to not 

less than 80% and not more than 120% of the actual 

market value of assets in any plan year. 

For the presumptive method, actuarial value, as 

described above, is used. 

Page 8-6 

United ~~.!J~LS.~r~!£e ,_, .!:ln=c!..._ ______ _ 

39.65 
Date Source of Change in 

Established Unfunded Liability 

Charges 

51111977 lnilial UAL 

5/1/1979 Plan Amendment 

5/1/1985 Plan Amendment 

5/1 /1986 Plan Amendment 

5/1/1987 Plan Amendment 

5/1/1989 Plan Amendment 

511/1990 Assumptions 

5/1/1994 Assumptions 

51111996 Assumptions 

5/1/1996 Plan Amendment 

5/1/1997 Assumptions 

5/1/1997 Plan Amendment 

5/1/1998 Plan Amendment 

5/1/1999 Plan Amendment 

511/2000 Assumptions 

51112000 Plan Amendment 

51112001 Expenence Loss 

51112002 Amendment 

5/1/2002 Assumptions 

5/1/2002 Experience Loss 

5/1/2003 Experience Loss 

5/1/2004 Experience Loss 

5/1/2005 Experience Loss 

511/2006 Experience Loss 

51112007 Assumptions 

51112007 Method 

511/2008 Experience Loss 

5/1/2009 Experience 

5/1/2011 Experience 

5/1/2012 Assumptions 

511/2012 Experience 

5/1/2013 Experience 

United Actuarial Services, Inc. 

Appendix C -Minimum Funding Amortization Bases 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

Remaining Period 5/1/2014 -p/1/2014 I 

Original Original Outstanding Amortization 

Amount Period Years I Months Balance Payment 

40 3 0 236,690 85,030 

40 5 0 214,671 49,783 

30 1 0 7,111 7,1 11 

30 2 0 143,143 74.328 

30 3 0 276,262 99.262 

30 5 0 234,181 54.302 

30 6 0 104,625 20.953 

513,413 30 10 0 305,191 42,115 

475,139 30 12 0 317,768 39.046 

366,610 30 12 0 245,211 30.127 

302,027 30 13 0 212,056 24,841 

2,024,332 30 13 0 1,421,236 166,496 

1,046,114 30 14 0 766,101 86,040 

1,094,569 30 15 0 832,216 90,026 

481,195 30 16 0 378,349 39,577 

208,860 30 16 0 164.225 17,178 

350,347 15 2 0 72.988 37,899 

20,726 30 18 0 17,254 1,705 

685.458 30 18 0 570,641 56,377 

1,973,958 15 3 0 594.315 213,534 

4,1 39.652 15 4 0 1,601,848 447.809 

1,064,453 15 5 0 496,528 115.148 

2,241.650 15 6 0 1,210,688 242,492 

1,908.358 15 7 0 1,160,770 206.438 

30.385 30 23 0 27,991 2.499 

48,313 10 3 0 18,556 6.667 

296,362 15 9 0 216,290 32,059 

6.709,219 15 10 0 5,259,598 725.773 

1,462,111 15 12 0 1,287,295 158,165 

532,014 15 13 0 491,259 57,551 

1,652,462 15 13 0 1,525,875 178,756 

923,614 15 14 0 889,598 99,912 

Page C-1 

39.66 
Appendix C - Minimum Funding Amortization Bases 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

-.-- 511/2014 

Date Source of Change in 

Established Unfunded Liability 

Credits 

511/1985 Assumptions 

511/1988 Method 

511/1989 AsslBtlptions 

511/1992 Assumptions 

511/1993 Assumptions 

5/1/1995 Plan Amendment 

5/1/2000 Experience Gain 

5/1/2003 Assumption 

5/1/2003 Plan Amendment 

5/1/2005 Assumptions 

5/1/2005 Plan Amendment 

5/1/2006 Plan Amendment 

5/112007 Experience Gain 

511/2009 Plan Amendments 

511/2010 Assumptions 

511/2010 Experience Gain 

511/2011 Assumptions 

5/1/2014 Experience Ga.in 

United Ac tuarial Services, Inc. 

Original Original Remaining Period 

Amount Period Years I Months 

Total Charges: 

30 1 0 

30 4 0 

30 5 0 

30 8 0 

30 9 0 

158,607 30 11 0 

123,541 15 1 0 

113,096 30 19 0 

2,117,342 30 19 0 

41,563 30 21 0 

3,412,714 30 21 0 

652,500 30 22 0 

382,876 15 8 0 

2,291,241 15 10 0 

68,862 15 11 0 

2.238.307 15 11 0 

44.153 15 12 0 

632,588 15 15 0 

Total Credits: 

Net Charges: 

Less Credit Balance: 

Less Reconciliation Balance: 

Unfunded Actuarial Liability: 

Page C-2 

39.67 

Outstanding 

Balance 

21,300,530 

45,173 

174,499 

113,589 

4,497 

118,113 

100.405 

13,369 

96,479 

1.806,225 

36,993 

3.036,514 

591,234 

257,057 

1,796.190 

57,434 

1,866,844 

38,875 

632,588 

10,786,078 

10,514,452 

-6.521,950 

0 

17,036,402 

5/1/2014 

Amortization 

Payment 

3,508,999 

45,173 

48,784 

26,338 

723 

17,510 

13,022 

13,369 

9,302 

174,146 

3,418 

280,688 

53,667 

41,418 

247,856 

7,449 

242,130 

4,776 

68,431 

1,298,200 

2,210,799 
Appendix D- Summary of Endangered and Critical Status Rules 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

RULES FOR ENDANGERED AND CRITICAL STATUS 

Background 

The Pension Protection Act of 2006 ("PPA"), passed in August 2006, established special 

rules for plans in "Endangered" or "Critical" status. These rules become effective with 

the plan year beginning in 2008 and are scheduled to "sunset" in 2015 unless Congress 

takes further action. 

Criteria for Endangered and Critical 

The table below summarizes the criteria for these categorizations. Projected 

deficiencies are calculated as of the last day of each plan year and are based on 

contribution rates codified in bargaining agreements and, if applicable, wage allocations. 

Critical Status Endangered Status 

GETTING IN: 

Plan is Critical if it is described in one or Plan is Endangered if it is not Critical and it is 

more of the following: described in one of the following: 

• Funded percentage is less than 65%, 

and, inability to pay benefits and 

expenses for next 7 years, or 

• Projected funding deficiency in the 

current year or next 3 years (next 4 

years if funded at less than 65%), or 

• ( 1) Contributions are less than current 

year costs (i.e. •normal cost") plus 

interest on any unfunded past liabilities, 

and, (2) value of vested benefits for nonactives is greater than for actives, and, 

(3) projected funding deficiency in the 

current year or next 4 years, or 

• Inability to pay benefits and expenses For 

next 5 years. 

Special note: the funding deficiencies for the 

above rules do not recognize amortization 

extensions! 

• Funded percentage is less than 80%, or 

• Projected funding deficiency in the current 

year or next 6 years. 

A non-critical plan that meets both of the 

preceding criteria is considered "Seriously 

Endangered" 

GETTING OUT: 

No longer meets any of the Critical status No longer meets the requirements to be 

tests, plus, no projected funding deficiencies classified as Endangered 

in the current year or next 9 years (including 

amortization extensions) 

United Actuarial Services, Inc. Page D-1 

39.68 
Benefits 

Appendix E- Glossary of Common Pension Terms 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

GLOSSARY OF COMMON PENSION TERMS 

Accrued Benefit: A benefit that an employee has earned (or accrued) through past 

participation in the plan. It is the amount payable at normal retirement age. 

Why it matters: Under tile law, Accwed Benefits generally may not be reduced 

by plan amendment. The exception to this anti-cutback protection would be for 

"adjustable benefits" that come into play for critical status plans. 

Actuarial Equivalence: Given a set of actuarial assumptions, when two different sets 

of payment scenarios have an equal present value. 

Early Retirement Reduction Factor: A retirement benefit that begins before normal 

retirement age may be reduced. The plan document defines the amount of the 

reduction by formula or a table of factors. This reduction may or may not be 

actuarially equivalent, but its present value can be no less than actuarially equivalent 

to the benefit payable at normal retirement age. 

Benefit Crediting (Accrual) Rate: A general reference to the calculation of the 

amount of monthly retirement benefit earned per dollar contributed or per year or hour 

worked. 

Assets 

Market Value of Assets: The market value of all assets in the fund including on an 

accrued, not cash basis (matching the plan audit). 

Actuarial Value of Assets: The amount of assets recognized for actuarial valuation 

purposes. Recent changes in market value may be partially recognized (there are 

variations allowed on the exact recognition). Generally the actuarial value is limited to 

not be less than 80% or more than 120% of the market value. 

WIJY il matters: Many funding calculations use this "smoothed" asset value 

method to lessen the impact of volatility in the market value of plan assets. 

Assumed Rate of Return: Long term assumption of the rate of return on assets 

based upon the diversification mix of invested assets. 

Why it matters: This assumption is used in calculating the present values 

discussed in the Liabilities section below. Tile Assumed Rate of Return has an 

inverse relationship with plan liabilities. In other words, a lower Assumed Rate 

of Return increases liabilities. while a higller Assumed Rate of Return 

decreases plan Liabilities. 

Page E-1 

United Actua rial rvic~hl .S.. .... --.. ·-----------------

39.69 
L iabilities 

Appendix E- Glossary of Common Pension Terms 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

GLOSSARY OF COMMON PENSION TERMS (CONT) 

Present Value of Accrued Benefits: The discounted value of benefit payments 

due in the future but based only on the current Accrued Benefits of each participant. 

The value is based on actuarial assumptions including an assumed rate of 

investment return. 

Why it matters: This liability is one of the primary factors in determining a plan's 

annual PPA funded status (see Funded Ratio). 

Present Value of Vested Benefits: The discounted value of Accrued Benefits that 

are considered vested (non-forfeitable). Benefits that are not vested include those of 

participants who have not satisfied the plan vesting requirement (usually five years of 

service). In addition under the law some death and temporary disability benefits are 

also considered non-vested regardless of service because they are not considered 

protected benefits. 

Why it mailers: T!Jis liability is the primary driver of a plan's Employer 

Withdrawal Liability. 

Actuarial (Accrued) Liability: For inactive members this is the same as the Present 

Value of Accrued Benefits above. For active members this depends on the cost 

method selected by the actuary. Under the accrued benefit or traditional unit credit 

cost method this is also the same as the Present Value of Accrued Benefits. Under 

other cost methods (including most commonly entry age normal) this represents an 

alternate allocation of projected benefit cost over the working lifetime of active 

members. Under the entry age normal cost method, the active Actuarial Liability is 

larger than the Present Value of Accrued Benefits. 

Unfunded Actuarial Liability: The Actuarial Liability less the Actuarial Value of 

Assets. 

Current Liability: This is similar to the Present Value of Accrued Benefits, but uses 

a statutory, significantly lower, interest rate (equivalent to an expected rate of return 

on a bond only-type portfolio) and statutory mortality tables. The tower interest rate 

means that Current Liability tends to be significantly higher than the Present Value of 

Accrued Benefits. This number has very little impact on muttiemployer plans. 

Normal Cost: The present value of all benefits that are expected to accrue or to be 

earned under the plan during the plan year. The way in which a benefit is considered 

to be earned varies with the actuarial cost method. 

Page E-2 

!!_ni cl !J.!! ~ia er~iE , Inc_. ___________________ _ , _____ _ 

39.70 
Funding 

Appendix E- Glossary of Common Pension Terms 

Bricklayers Local No. 7 Pension Plan 

May 1, 2014 Actuarial Valuation 

GLOSSARY OF COMMON PENSION TERMS (CONT.) 

Funded Ratio (Funded Percentage): Present Value of Accrued Benefits divided by 

the Actuarial Value of Assets. This is one of two key measures used to determine a 

plan's annual PPA funded status. This may also be referred to as PPA Funded Ratio. 

This must be greater than 80% to avoid endangered status. 

Credit Balance: The accumulated excess of actual contributions over legally 

required minimum contributions as maintained in the funding standard account. The 

funding standard account is maintained by the actuary in the valuation process and 

reported annually in schedule MB to the Form 5500 filing. 

Accumulated Funding Deficiency: A negative credit balance, indicating an excess 

of total charges to the funding standard account over the total credits to such 

account. Prior to PPA, an accumulated funding deficiency caused an immediate 

excise tax (waiver under PPA if certain conditions are met). After PPA, a current or 

projected funding deficiency is one of the two main criteria used in detennining the 

annual PPA status. It can eventually trigger an excise tax levied on contributing 

employers. 

Funding Period: The estimated number of years it would take to pay off the Plan's 

unfunded liabilities (and be 100% funded). This calculation is based on the entry age 

normal liability basis. This is determined by taking the excess of expected 

contributions over expected normal cost and comparing it to the unfunded entry age 

accrued liability. This is a good single measure of plan health that looks at both 

current levels of funding and future expectations. It is also a good indicator of the 

level of risk the plan is taking in funding its future benefits. 

Withdrawal Liability 

Unfunded Vested Benefits (UVB): Present Value of Vested Benefits less the value 

of plan assets determined on either an actuarial or market value basis. The selection 

of asset measurement is part of the withdrawal liability method of the Plan. 

Employer Withdrawal Liability (EWL): An employer that withdraws from a 

multiemployer plan is liable for its proportionate share of Unfunded Vested Benefits, 

determined as of the date of withdrawal. 

WIJY it matters: If a contributing employer leaves the plan with Unfunded Vested 

Benefits liability, that employer's allocated sl1are of Employer Withdrawal Liability 

is either assessee/, as applicable, or reallocated among the plan ·s remaining 

active contributing employers. Employer Withdrawal Liability has both 

advantages and disadvantages to the plan. The main upside of Employer 

Withdrawal Liability is that its presence may encourage contributing employers to 

remain in the plan, helping other contributing employers. The disadvantage is 

that EWL may make it more difficult for a contributing employer to sell the 

company, and possibly may make it more challenging to secure loans and other 

lines of credit. 

Unit d Actuarial Services, Inc. 

Page E·3 

39.71 
BRICKLAYERS AND ALLIED CRAFTSMEN 

LOCAL No. 7 PENSION PLAN 

AKRON, OH 

Actuarial Valuation Report 

For Plan Year Commencing 

May 1, 2015 

39.72 
United Actuarial 

Services, Inc. 

Ar..Ludries .-.no C.on·ouu·, .rlts 

October 30, 2015 

Board of Trustees 

Bricklayers and Allied Craftsmen 

Local No. 7 Pension Plan 

Akron, OH 

Dear Trustees: 

We have been retained by the Board of Trustees of the Bricklayers and Allied Craftsmen 

Local No. 7 Pension Plan to perform annual actuarial valuations of the pension plan. This 

report presents the results of our actuarial valuation for the plan year beginning May 1, 

2015. The valuation results contained herein are based on current plan provisions 

summar'1zed in Appendix A, the actuarial assumptions and methods listed in Appendix B 

and on financial statements audited by Yurchyk & Davis CPA's, Inc. Participant data was 

provided by Compensation Programs of Ohio, Inc. While we have reviewed the data for 

reasonableness in accordance with Actuarial Standards of Practice No. 23, we have not 

audited it. The data was relied on as being both accurate and comprehensive. 

This report has been prepared in order to (1) assist the Trustees in evaluating the current 

actuarial position of the plan, (2) determine the minimum required and maximum 

deductible contribution amounts under Internal Revenue Code §431 and §404, (3) provide 

the fund's auditor with information necessary to comply with Accounting Standards 

Codification 960, and (4) document the plan's certified status under Internal Revenue 

Code §432 for the current year and provide the basis to certify such status for the 

subsequent year. In addition, information contained in this report will be used to prepare 

Schedule MB of Form 5500 that is filed annually with the IRS and could be used to 

calculate employer withdrawal liability. We are not responsible, for the use of, or reliance 

upon this report for any other purpose. 

We have prepared this report in accordance with generally accepted actuarial principles 

and practices and have performed such tests as we considered necessary to assure the 

accuracy of the results. The results have been determined on the basis of actuarial 

assumptions that, in my opinion, are appropriate for the purposes of this report, are 

individually reasonable and in combination represent my best estimate of anticipated 

expenence under the plan. Actuarial assumptions may be changed from previous 

valuations due to changes in mandated requiremenls, plan experience resulting in 

changes in expectations about the future, and/or other factors. An assumption change 

does not indicate that prior assumptions were unreasonable when made. For purposes of 

current liability calculations, assumptions are prescribed by regulation or statute. By 

relying on this valuation report, the Trustees confirm they have accepted the assumptions 

contained in the report. 

The results are based on my best interpretation of existing laws and regulations and are 

subject to revision based on future regulatory or other guidance. 

Future actuarial measurements may differ significantly from the current measurements 

presented in this report due to such factors as the following: plan experience differing 

from thai anticipated by the economic or demographic assumptions, changes in economic 

1 1590 North Meridian Street Su•te 6 I 0 • Carmel, nd S\5~ ¥032- 529 • [3 17) 58G-8670 • Fax (3 17) 580·865 1 

·•· 
Redacted by the U.S. Department of the Treasury
PART 1: SUMMARY OF RESULTS 

5 • Year Summary of Valuation Results 

5-Year Summary of Demographics 

Changes From Prior Study 

Experience vs. Assumptions 

Rate of Return on Fund Assets 

Unfunded Vested Benefits/Employer Withdrawal Liability 

Termination by Mass Withdrawal 

Contribution Allocation 

Funded Ratios 

Funding Standard Account 

Projection of Credit Balance and Funded Ratio 

PPA Funding Status Report 

Funding Period 

Ultimate Funded Status 

Sensitivity Analysis 

PART II: SUPPLEMENTAL STATISTICS 

Participant Data Reconciliation 

Hours Worked During Plan Year 

Contributions Made During Plan Year 

Active Information 

Inactive Vested Information 

Retiree Information 

PART 11/: ASSET INFORMATION 

Market and Actuarial Fund Values 

Flow of Funds 

Investment Gain and Loss 

PART IV: ENROLLED ACTUARY'S REPORT 

Normal Cost/Actuarial Liability 

Actuarial Liability Reconciliation/Projection 

Funding Period 

Current Liability 

Full Funding Limit 

Minimum Required Contribution and Full Funding Credit 

Maximum Deductible Contrib ution 

History of Unfunded Vested Benefits 

ASC 960 Information 

APPENDICES 

Plan Provisions 

Actuarial Assumptions and Methods 

Minimum Funding Amortization Bases 

Summary of Endangered and Critical Status Rules 

Glossary of Common Pension Terms 

TABLE OF CONTENTS 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

Appendix A 

Appendix B 

Appendix C 

Appendix D 

Appendix E 

United Act_!:lariai'-"'S"' e,._rv::..i=.=c:=e:=se<.. , _,_ln'-"'c,._. -------------------------

39.75 
PART 1: SUMMARY OF RESULTS 

United Actuarial Services, Inc. 

Page 1 

-- ·····--·------- - - 39.76 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

5- YEAR SUMMARY OF VALUATION RESULTS 

Actuarial Study 

as of May 1, 2015 2014 2013 2012 2011 

PPA funded status Crit. 

Decl. 

Progress under FIP/RP Yes Yes Yes Yes Yes 

Funded ratio 

PPA certification 0.51 0.52 053 0.56 0.64 

Valuation report 0.49 0.52 0.53 0.57 0.63 

Date of first projected funding deficiency 

PPA certification 4/30116 4/30/15 4/30114 4130/13 4130/12 

Valuation report 4/30116' 4/30/15 4/30114 4130/13 4130/12 

Asset values {S 000) 

Market 17.412 18,342 19,101 19.614 21,415 

Actuarial 17.810 18,585 18,694 20,237 22.055 

Accumulated ben. ($ 000) 36,032 35.621 35.497 35,469 34,775 

40,000 

35,000 

a.eccurnulated 30,000 

Bene~ s 

~ 25,000 

a Assets 

(~.:tu ri ot) ;;: "'20,000 F.; 

a Assets "' l>l r~et) § 15,000 

;:: 

·to.ooo 

5,000 

0 

201 5 201 4 2013 2012 2011 

Piau Year Begilutill!J 

Based on assumptions used lor the credit balance projection graph as shown on page B·5. 

Page 2 

Y..nite d Actuari~ S.c:.r.v ic~~L..!!:'.C:~.-·-----------------

39.77 
Actuarial Study 

as of May 1, 2015 

of Hours 

180 

160 

140 

• Expected Hr'S-'"""' 120 

Valuation ., 100 • Expected Hrs - , 

c 

PPACetl .. 80 ., •Actual Hrs " 0 80 .c 

... 40 

20 

0 

2016 

United Actuarial Services, Inc. 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 ActtJarial Valuation 

5- YEAR SUMMARY OF DEMOGRAPHICS 

2014 2013 2012 2011 

2015 2014 2013 2012 

Plan Year Ending 

Page 3 

39.7R 
Changes in Plan Provisions 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

CHANGES FROM PRIOR STUDY 

The plan provisions underlying this valuation are the same as those valued last year. 

Changes in Actuarial Assumptions and Methods 

The actuarial assumptions and methods used in this valuation differ from those used in 

the prior valuation in the following respects: 

• We increased the assumed hourly contribution rate from $6.46 to $6.66 to reflect the 

negotiated increase effective June 1, 2015. 

• The ERISA rate of return assumption used to value liabilities was changed from 8.00% 

to 7. 75% to provide our best estimate of the future rate of net investment return based 

on the Plan's current investment policy and asset allocation. 

• We changed the current liability interest ra te from 3.61% to 3.37%. The new rate is 

within established statutory guidelines. 

History of Major Assumptions 

Actuarial Studv as of Mav 1, 

Assumption 2015 I 2014 I 2013 I 2012 T 2011 

Future rate of net 7.75% 8.00% 8.00% 8.00% 8.00% 

investment return 

Mortality table RP-2000G RP-2000G RP-2000G RP-2000G UP-94 

W/BCA +1 W/BCA +1 WIBCA+1 WIBCA +1 

Future expenses $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 

Average future hourly 

contribution rate 

Credited $2.00 $2.00 $2.00 $2.00 $2.00 

Non-credited 4.66 4.46 4.38 3.98 3.58 

Total $6.66 $6.46 $6.38 $5.98 $5.58 

Average future annual hours 

Vested 1,100 1 ' 1 00 1,100 1,1 00 1,100 

Non-vested 800 800 800 800 800 

Average expected retirement age* 

Actives 61.0 61.1 61.1 61.0 60.9 

Inactive vested 60.9 61.0 61.2 61.3 61.3 

Resulting from the application of the retirement probabilities in Appendix B to active participants. 

Page 4 

United Ac~uarial ~~rvices,c..=.!n!.:c,_,. ________ _ 

39.79 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

EXPERIENCE VS. ASSUMPTIONS 

Comparing the prior year's 

experience to assumptions 

provides indications as to 

why overall results may 

differ from.th()t;e expeqtecl .•• 

Actuarial assumptions are used to project certain 

future events related to the pension plan (e.g. 

deaths, withdrawals. investment income, expenses, 

etc.). While actual results for a single plan year will 

rarely match expected experience, it is intended 

that the assumptions will provide a reasonable long 

term estimate of developing experience. 

The following table provides a comparison of expected outcomes for the prior plan year 

wilh the actual experience observed during the same period. This display may provide 

insight as to why the plan's overall actuarial position may be different from expected. 

Plan Year Ending 

April 30, 2015 

Decrements 

Terminations 

less:Rehires 

Terminations (net of rehires) 

Retirements 

Disabilities 

Deaths - pre-retirement 

Deaths · post-retirement 

Asset assumptions 

Rate of net investment return on actuarial valve 

Net expenses 

Other demographic assumptions 

Average retirement age from active (new retirees) 

Average retirement age from inactive (new retireesr 

Average entry age (new entrants) 

Hours worked per vested active 

Hovrs worked per non-vested active 

Total hovrs worked (valvation assumption) 

Total llo!lrs worked (PPA certification assumption) 

Unfunded liability (gain)floss 

(Gain)lloss due to asset experience 

(Gain)!loss due to liability experience 

Totat' (aainJ/Ioss 

Expected 

6.9 

1.6 

0.0 

0.7 

11 .6 

8.00% 

$ 120,000 

60.0 

61.0 

30.8 

1,100 

800 

102.200 

127.500 

Expected average based on the average for the total group of part1c1pants. 

Page 5 

United Actu ~!.!.~LSent. ces< !!ln.!c~~-------- ----

39.80 

$ 

$ 

$ 

Actual 

11 

19 

(8) 

1 

16 

7.51% 

102,568 

62.0 

68.8 

368 

1.158 

654 

144,077 

144,077 

85,898 

(298, 189) 

(212,291) 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

R ATE OF RETURN ON FUND ASSETS 

Historical Rates of Net Investment Return 

4D% 1-------------------------

-30% ' .... , .. :o 

0) 

~ 

~ 

"' 

~ "' "' ~ 

<::> C> 

~ 8 

0 

~ 

5 

0 

"' 

N 

0 

0 

N 

~ 

0 

0 

"' 

··-.···-··--... 

g "' "' ~ ., "" "' C > B "' & 0 0 0 Q 

"' "' N "' N 

? Jan YoarCrd1ng 

~ ~ 

5 1'l , ... 

_...1•/arkol Vatu e 

--.:.----1 -.rAcruari2ii Valua 

-.-Expected R o:u rn 

~ ~ ~ co n n 0 g N "' "' 

Average Rates of Net Investment Return (dollar weighted) 

Return on Market Value Return on Actuarial Value 

Period Endinq April 30, Period Ending April 30, 

Period 2015 L 2014 2015 J 2014 

One year 6.72% 8.27% 7.51% 12. 16% 

5 years 7.76% 12.89% 4.55% 7.97% 

10 years 4.92% 4.49% 3.63% 2.82% 

15 years 2.58% 2.48% 2.90% 3.52% 

20 years 6.33% 6.17% 5.97% 6.15% 

United Actuarial Services, Inc. Page 6 

39.8 1 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

UNFUNDED VESTED BENEFITS/EMPLOYER WITHDRAWAL LIABILITY 

An employer withdrawing 

during the coming year may 

have withdrawal liability 

The following table shows a history of the plan's 

unfunded vested benefits (UVB} required to 

compute a specific employer withdrawal liability 

under the presumptive method. If all unfunded 

vested benefits since the Inception of the 

Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) are zero (50) or less. 

there will be no withdrawal liability assessed to a withdrawing employer. Otherwise, an 

employer may be assessed withdrawal liability payments pursuant to MPPAA. The 

display does not reFlect adjustments for prior employer withdrawals. 

In accordance with IRC Section 432(e)(9){A} and PBGC Technical Update 10-3, the 

impact of reducing adjustable benefits is reftected by adding the unamortized portion of 

the value of affected benefits {VAB) to the most recent year's unfunded vested benefits 

pool. 

2014 2013 

Vested benefits interest 7.75% 8.00% 8.00% 

Vested benefits 35.983 35,571 35,457 

less:Asset value • 17,810 18,585 18,694 

UVB 18,173 16.986 16,763 

Unamortized VAB 1,257 1,350 1.436 

40,000 

35,000 

30,000 

•Assats• e 

.. 25,000 '! aVAB .. 20.000 ., 

a Vested ~ 15.000 

Benefits 

10,000 

5,000 

0 

2014 2013 2012 

Plan Ye.u Ending 

- Act\JOOal Va1uo 

Page 7 

United Actuarial Serv c,_,e_,s~,_,"-n'-"c"-.--

39.82 

2012 2011 

8.00% 8.00% 

35,419 34,740 

20 237 22,055 

15,182 12.685 

1,516 1.590 

2011 2010 
ynaer fi?a~fwithdrawat ._,,._] 

~ 

assumptions, plan assets do . l 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valttation 

TERMINATION BY MASS WITHDRAWAL 

If all employers were to cease to have an 

obligation to contribute to the plan, the plan 

would be considered "terminated due to mass 

withdrawal." In this event, the Trustees would 

have the option of distributing plan assets in 

satisfaction of all plan liabilities through the 

purchase of annuities from insurance carriers or payment of lump sums. tf assets are 

insufficient to cover liabilities, a special actuarial valuation pursuant to Section 4281 of 

ERISA would be performed as of the end of the plan year in which the mass withdrawal 

occurred. If the Section 4281 valuation indicates the value of nonforfeitable benefits 

exceeds the value of plan assets, employer withdrawal liability would be assessed. 

The ERISA Section 4281 valuation described above uses required actuarial assumptions 

that are typically more conservative than those used for valuing an on-going plan. In 

order to illustrate the impact of the mass withdrawal assumptions, we performed an 

illustrative Section 4281 valuation as if mass withdrawal had occurred during the prior plan 

year. The value of assets used below is market value without any adjustments for 

outstanding employer withdrawal liability claims. As required by regulation, interest rates 

of 2. 71% for the first 20 years and 2. 78% for each year thereafter and the GAM 94 Basic 

Table projected to 2025 mortality table were used. 

Illustrative Section 4281 Valuation 

as of April 30, 2015 

Value of nonforfeitable benefits 

Participants currently receiving benefits 

Inactive vested participants 

Active participants 

Expenses (per Section 4281 of ERISA) 

less: Fund assets (market value) 

s 

Value of nonforfeitable benefits in excess of (less than) fund assets $ 

,U ry it!'!d Act uarial Services, Inc. Page 8 

39.83 

36,059,099 

15,006,161 

16,206,619 

443.044 

67,714,923 

17,411 .864 

50,303,059 
These graphs show how 

the contributions are 

being spent 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

CONTRIBUTION ALLOCATION 

The following allocation charts illustrate how the 

expected contribution rate for the coming plan year 

will be "spent" to pay for benefits being earned in the 

current year, plan expenses, and funding of past 

unfunded liabilities. 

Contribution Allocation as of Ma 1, 2015 

Plan Funding 

S5.06 

76% 

Benefit Accrual 

$0.74 

Expenses 

$0.86 

13% 

Contribution Allocation as of Ma 1, 2014 

Plan Funding 

$4.51 

70% 

United. Actuarial Services, Inc. 

Benefit Accrual 

$0.78 

12% 

Page9 

39.84 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actllarlal Valuation 

F UNDED RATIOS 

The funded ratio can be 

used as an indication of 

ongoing funding 

progress 

The present value of vested accumulated benefits is the 

amount that would have to be invested as of the 

valuation date in order to pay, when due. the benefits 

accrued and vested as of the valuation date. This 

calculation assumes fund assets will earn interest at the 

assumed rate and all other aspects of the fund's 

experience will follow the actuarial assumptions. Similarly, the present value of all 

accumulated benefits is the amount necessary to fund all benefits accrued as of the 

valuation date. 

The extent to which the value of vested, accumulated benefits and total accumulated 

benefits are funded provides a ·snapshor measure of the plan's funded status as of the 

valuation date. 

Present Value of Accumulated Benefits/ 

Funded Ratios 

Actuarial Study as of May 1, 

Present value of vested accumulated benefits 

Participants currently receiving benefits $ 

Inactive vested participants 

Active participants 

Total 

Nonvested accumulated benefits 

Present value of all accumulated benefits S 

Actuarial value of assets $ 

Market value of assets $ 

Funded ratios {Actuarial value used for PPA) 

Vested benefits 

All accumulated benefits 

Funded ratios (Market value) 

Vested benefits 

All accumulated benefits 

Interest rate used to value benefits 

United Actuarial Service s, Inc. 

Page 10 

39.85 

2015 

22,825.240 

6,504.265 

6,653,606 

35,983,1 11 

49,301 

36,032,412 

17,809,726 

17,411 ,864 

0.49 

0.49 

0.48 

0.48 

7.75% 

$ 

$ 

$ 

$ 

2014 

23,640.628 

6,173.115 

5,757.754 

35,571.497 

49,743 

35,621,240 

18,584,838 

18,341 .720 

0.52 

0.52 

0.52 

0.51 

8.00% 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

FUNDING STANDARD ACCOUNT 

The minimum funding 

requirements have not 

been met for the most 

r. ecent plan year . _,,, . . .. 

The Funding Standard Account is used to determine 

whether the plan meets the minimum funding 

requirements established by ERISA. Such a 

determination is done by subtracting the year's 

charges from the credits. A positive result establishes 

a credit balance that represents the amount the plan is 

in excess of the minimum required contribution on a cumulative basis. A negative result 

represents a funding deficiency which could produce excise taxes (except under certain 

circumstances when the plan is following a rehabilitation plan). The projected values use 

the assumptions summarized on page B-5 of the appendix. 

For plans in critical status, the excise tax for failure to meet minimum funding 

requirements is waived assuming the provisions of the rehabilitation plan continue 

to be met. This includes making adequate progress under the rehabilitation plan. 

Funding Standard Account 

Plan Year Ending April 30, 

Charges 

Prior year funding deficiency 

Normal cost (including expenses) 

Amortization charges (see Appendix C) 

Interest on above 

Total charges 

Credits 

Prior year credit balance 

Employer contributions 

Amortization credits (see Appendix C) 

Interest on above 

ERISA full funding credit 

Total credits 

Credit balance (credits less charges) 

Page 11 Un~ted Actuarial Services, Inc. 

39.86 

$ 

$ 

2016 2015 

(Projected) (Final) 

8,666,939 $ 6,521,950 

214,078 192,228 

3,564,929 3,508,9g9 

964,562 817,852 

13,410,508 11,041 ,029 

775,200 934,649 

1,248,241 1,298,200 

126,779 141,241 

2,150,220 2,374,090 

(1 1.260,288) s (8,666,939) 
Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

PROJECTION OF CREDIT BALANCE AND FUNDED RATIO 

These graphs show 

projections of the two biggest 

drivers of PPA status 

The following graphs provide more information 

about the two most important statistics used in 

the determination of the PPA Funded Status. 

The first graph shows the ERISA credit balance 

{a negative credit balance indicates a projected 

funding deficiency}. The second graph shows the funded ratio. Both graphs illustrate 

projected results for the next 20 years using the assumptions summarized on page B-5 of 

the appendix. 

0 ··.-----------------------------------• 

... 

c (20} 

~ 

e (30} 

~ 

.. (40} <.> 

c 

;; "' {50) ., 

'5 {60) .. 

-(70 ) 

"' "' <!> " co 0> 0 ~ N (") ~ "' (t) ,._ «> 0> 0 ;;; "' <') 

0 0 0 0 0 " "' "' "' "' "' "' "' "' "' "' N (") <') "' "' M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N "' "' N "' "' "' "' "' "' "' "' N N N N N "' N N "' N 

u 

Year Ending 

100% .---------------------------, 

90% -----

80% ------

4) 70% 

~ "' 60% c 

.. 

~50% 

.. 

a. 40% 

., 

.g 30% c 

~ 20% 

10'%) 

O"io '¢ {)(.0,.....C0Ci)0 ~ 

~ ~ ~ ~ ~ ~ ~ ~ 

N M V \0 CO N N N N N 0 0 0 0 0 N N N N N 

Year Beginning 

Page 12 

--Currc•l l 

year 

-Last~ea t 

.IJni.!_c;:r:l_ Actu.arial_ Se r_,v:..:i.::c.::e.::s,,_ ..:l.:.: n:.::c:.:. ___________ _ ----------- 39.87 
Summary o f Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

PPA FUNDING STATUS REPORT 

The plan is in Critical 

and Declining status for 

2015 - . 

The Pension Protection Act of 2006 (PPA), as 

amended by the Mulliemployer Pension Reform Act of 

2014 ("MPRA"), requires all multiemployer pension 

plans to obtain an annual status certification. The 

possible statuses are: "Endangered". "Seriously 

Endangered", "Critical'', "Critical and Declining" or none of these. As the plan's actuary, 

we must complete the status certification within 90 days of the beginning of the plan year, 

and we must also certify whether or not the plan has made scheduled progress if its 

funding improvement or rehabilitation period has begun. The criteria for these 

determinations are outlined in Appendix D. Due to the timing requirement affecting PPA 

certifications, they are performed based on data different from that used in this report (see 

certification letter for additional details). The results are summarized below 

Values Used for PPA Certification 

Description 2015 I 

Funded ratio 0.51 

Date of first projected funding deficiency 4/3012016 

Years of benefit payments in assets 8+ 

Certified PPA status Critical and Declining 

Making progress under Fl P/RP Yes 

Pro ·ected PPA Status 

J..l.U .1JJJJ.11lll1.1.1.1. 1. 1.1.1.1.1.1. ~~®~O ~NM~ ~W~OO~O~ ~~~~OO~ 

~~-~ ~NNNNNNNN NNMM MMMMM 

QQOO O QQ O OQQOO OOOOOOOOO OOO NNNN NNNNNNNNN NNNN N N N NNNNN 

Year B eginuiug 

United Actuarial Services, Inc. 

Page 13 

39.88 

2014 

0.52 

4/3012015 

8+ 

Critical 

Yes 

• Safe 

Endange1ed 

• Seliously En d 

• critical 

• Ciilical and De efnlng 

x Safe (special ru5e) 
The risk of having future 

funding issues diminishes with 

~ lower funding_ period target 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

FUNDING PERIOD 

The funding period is the approximate number 

of years that would be required to completely 

fund the unfunded entry age normal actuarial 

liabilily if future plan experience occurs 

according to the assumptions. The funding 

period is an indicator of the long term financial soundness of the plan. Historically, funds 

often targeted a maximum funding period of up to 20 years. Today, asset losses are 

being paid off over a maximum of 15 years and are the primary driver for ERISA minimum 

funding. An ultimate target of no more than 10 years is recommended. A lower, more 

conservative funding period target can be chosen. As the funding period drops, the risk of 

having future funding issues also diminishes. 

Funding Period (in years) 

Actuarial study as of May 1, 2014 

Actuarial study as of May 1, 2015 

Anlicipated contributions are insufficient to pay normal cost and 

amortize unfunded habilily. 

His to of Fundin 

40 

35 

30 

25 

20 

15 

10 

5 

0 

2011 2012 2013 2014 

Plm 1 Year B egiru11no 

• 

• 

2015 

' A funding period of 40 years on the graph means that the funding period is 40 or more years. 

United Actuarial Services, Inc. 

Page 14 

. ... _______________ _ 39.89 
Ultimate funded status is a 

snapshot measure of 

contribution sufficiency 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ULTIMATE FUNDED STATUS 

The ultimate funded status is a measure used to 

see how well funded the current population is. It 

compares the present value of benefits for both 

past and future service to the current market value 

of assets plus the present value of future 

contributions. The ultimate funded status for the two most recent plan years is shown in 

the graph below. The present values of benefits and contributions include only current 

participants and assume no future contribution rate increases. The percentage above the 

bars is the ratio of assets and future contributions to the value of total benefits. 

40,000 

61% 61% 

35,000 

30,000 

~ 25,000 V> 

1! 

;; 20,000 

!!! 

§ 

;:: 1 5,000 

10,000 

5,000 

0 

2014 2015 

• MarketValue or Assets • PV Current Benefits 

•PV Future ContriiJutions • PV Future Benefits 

Page 15 

United Actuarial Services, Inc. -=..:.==.:=--==:.:....:=.:..:....=.::..:...;:..:..::.;=-..:..:..:.;=-=------·-· -·-- ··------- - 39.90 
The table below illustrates 

the impact on the plan when 

experience varies from key 

assumptions '" ', .... , '- I 

Summary of Results 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

SENSITIVITY ANALYSIS 

The Plan is currently projected to be insolvent in 

2026. Considering that experience rarely matches 

assumptions exactly, we developed the table 

below to demonstrate the impact that variations in 

certain key assumptions would have on Plan 

funding. We examined future hours assumptions 

equal to the baseline (as stated on page B-5 of the 

report), 10% lower, and 10% higher. We examined investment return for the 2015-2016 

plan year of 10.00%, 7.75%, 4.00%, and 0%. 

Hours Assumption 

10% Lower 2020 Funded %: 32% 31% 29% 26% 

108.000 each future year Year insolvent: 2026 2025 2025 2025 

Baseline 2020 Funded %: 34% 32% 30% 27% 

120,000 each future year Year insolvent: 2026 2026 2025 2025 

10% Higher 2020 Funded %: 35% 34% 31% 29% 

132.000 each future year Year insolvent: 2027 2026 2026 2025 

United Actuarial Services, Inc. 

Page 16 

39.91 
PART II: SUPPLEMENTAL STATISTICS 

Page 17 

===.::....:=.:=:!..!!::.:....=:::::....::..:-=..:=-..:..:..:.::..:.._ United Actuarial Services, Inc. ______ .•.• ' 

39.92 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

PARTICIPANT DATA RECONCILIATION 

The participant data reconciliation table below provides information as to how the plan's 

covered population changed since the prior actuarial study. Such factors as the number 

of participants retiring, withdrawing and returning to work have an impact on the actuarial 

position of the pension fund. 

Participants Inactive Receiving Total 

Valued As Active Vested Benefits Valued 

May 1, 2014 104 128 228 460 

Change due to: 

New hire 33 33 

Rehire 19 (8) 11 

Termination (11) 2 (9) 

Disablement 

Retirement ( 1) (4) 5 

Death/cash out (16) (16) 

New beneficiary 4 4 

Certain pd. expired 

Data adivstment 

Net change 40 (10) (7) 23 

lvlav 1, 2015 144 118 221 483 

Page 18 

Y!'l!.!:~ J.\ctuar.:! l Servic: =-= ...!c:.n~c:c:.• ________ _ -···-·-------- - 39.93 
Plan Year Ending 

Apri/30, 2015 

Actives 

Vested 

Non-vested, continuing 

Non-vested, new entrant 

Total active 

Others 

Total for olan vear 

His to 

1,400 

l/< "--..._ ::A 

-. 

1,200 

~ ...... ~ 

I 

I/ 

1,000 

800 

600 

400 

200 

0 

Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

HOURS WORKED DURING PLAN YEAR 

Average 

Number Hours Worked Hours Worked 

79 

32 

33 

144 

61 

205 

4 

~ ....... ---.... ........ 

91 ,465 

19,451 

23.033 

133,949 

10,128 

144.077 

1.158 

608 

698 

930 

166 

703 

._.._Vested Avg Hrs 

-11-Vested Hr .A.sstnnp 

-.o-Non.VstAvg Hrs 

--.-Non-VstHr Assump 

2009 2010 201 I 2012 20"13 2014 2015 2016 

Page 19 

United Actuarial Services, Inc- ~=~==!..!!!~::!..!~~=:..:_----------·- ·--···------

39.94 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

CONTRIBUTIONS MADE DURING PLAN YEAR 

Empl oyer C d' dC 'b . re 1te ontn ut1ons R eoorte d' In E mployee Data 

Plan Year Ending Credited 

April 30, 2015 Number Contributions 

Actives 

Vested 79 $ 

Non-vested, continving 32 

Non-vested, new entrant 33 

Total valued as active 144 

Others 61 

Total tor plan year 205 $ 

I Average credited hourly contribution rate $ 

Comparison with Audited Employer Contributions 

Employer credited contributions reported in data 

Adjusted total employer contributions reported* 

Total audited employer contributions $ 

Percent reported 

Reported 

182,931 

38,902 

45,574 

267,407 

19,909 

287,316 

1.99 

287,316 

928,031 

934,649 

99% 

·• Adjusted to reflect the $4.66 non-cred1ted amount effective June 1. 2015 

H't IS ory o fA c t ua an dE t d T I C 'b . xpec e ota ontn ut10ns R eceNe d 

1.0 --· --· 

0.9 

0.8 1-

0.7 - I-- - r-- 00 0.6 c I- - - I- - f-

~ 0.5 I- - 1- - 1- - r-- atxpectea contr . ::;; 

O.ol 1- 1- - 1- - r--

Valuation 

IExpected Contr0.3 . I- - I- - - I- - f- PPA~'t't •ft.ctua ontr 

0.2 1- 1- - 1- - r--

0.1 1- 1- - 1- - r--

0.0 

2006 2007 2008 2009 2010 2011 2012 2013 20"14 2015 2016 

United Ac~uarial Services, Inc. 

Page 20 

39.95 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ACTIVE INFORMATION 

Active Particioants by Aqe and Service as of Mav 1, 2015 

Years of Service 

Age <1 r 1-4 l s-9 T 1o-14 T 15-19 T 2o-24 T 25-29 I 30-34 I 35-39 1 40+ I Total 

< 25 - 1 - - - - - - - - 1 

25-29 - 6 1 - - - - - - - 7 

30-34 - 4 2 1 - - - - - - 7 

35-39 - 4 7 2 - - - - - - 13 

40-44 - 5 7 2 3 1 - - - - 18 

45-49 - 6 3 7 4 3 - - - - 23 

50-54 - 6 1 3 4 7 2 3 1 - 27 

55-59 - 1 2 3 1 3 3 - 2 1 16 

60-64 - 3 - - - - - - - - 3 

65-69 - - - - - - - - - - - 70+ - - - - - - - - - - - Totals - 36 23 18 12 14 5 3 3 1 115 

Unrecorded 

DOB - 29 - - - - - - - - 29 

Total 

Active 

Lives - 65 23 18 12 14 5 3 3 1 144 

Page 21 

United Act.ua.ri'!! Se~r!..:v~i~c~e~s,~lne!:c~·~-----------

39.96 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

INACTIVE VESTED INFORMATION 

Inactive Vested Participants bv Aae as of Mav 1, 2015 

Estimated Deferred 

Age Group Number Vested Benefits* 

< 30 - $ - 30-34 3 432 

35-39 16 10.835 

40-44 16 15 . 894 

45-49 21 18.679 

50-54 22 23,159 

55-59 20 18.925 

60-64 16 6.097 

65-69 4 1.288 

70+ - - Totals 118 95,309 

Unrecorded birth date - - Total inactive vested lives 118 $ 95 . 309 

' Amount payable at assumed retirement age as used in the valuation process. 

United Actuarial Services, Inc. 

Page 22 

'59.97 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RETIREE INFORMATION 

Benefits Being Paid by Form of Payment as of Mav 1, 2015 

Monthly Benefits Bein.q Paid 

Form of Payment Number Total l Average 1 Sma//estl Largest 

Life only 75 $ 77,695 $ 1,036 $ 40 $ 3,946 

Certain & life 18 24,314 1,351 75 3,726 

Joint & survivor 74 112,660 1,522 36 5,665 

Disability 1 1,273 1,273 1,273 1,273 

Beneficiaries 53 19,845 374 17 1,467 

Totals 221 $ 235,787 $ 1,067 $ 17 $ 5,665 

Retirees bv Aqe and Form of Pavment as of May 1, 2015 

Form of Benefits Beina Paid 

Age Life Certain Joint & 

Group Only & Life Survivor Disability Total 

< 40 - - - - - 40-44 - - - - - 45-49 - - - - - 50-54 - - - - - 55-59 3 - 1 1 5 

60-64 8 5 8 - 21 

65-69 11 6 20 - 37 

70-74 12 3 13 - 28 

75-79 16 4 18 - 38 

80-84 14 - 10 - 24 

85-89 8 - 4 - 12 

90-94 2 - - - 2 

95+ 1 - - - 1 

Totals 75 18 74 1 168 

olus: Beneficiaries 53 

Total receiving benefits 221 

Page 23 

Unite d Actu<!.ri'!! _s «;,!yices,...!! ln~c:!.. ____________ _ 

39.98 
Supplemental Statistics 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RETIREE INFORMATION (CONT.) 

Age of Participants Retired During Last 5 Plan Years 

(excludes beneficiaries and disability retirements) 

Age at Plan Year Ending April 30, 

Retirement 2015 I 2014 

<55 

55 1 

56 1 

57 

58 1 

59 1 

60 1 

61 

62 1 4 

63 1 

64 

65 2 

66+ 4 1 

Totals 5 13 

History of Average Retirement Ages 

(exc ludes beneficiaries and disabilit 

Retirement During Plan Year 

Ending In: 

2015 

2014 

2013 

2012 

2011 

I 2013 

1 

1 

4 

6 

retirements) 

Number 

5 

13 

6 

6 

6 

Page 24 

I 2012 I 

1 

1 

1 

2 

1 

6 

Average 

Retirement Age 

67.5 

61.4 

60.9 

64.6 

61.5 

2011 

2 

1 

2 

1 

6 

Un~.!: c:J.-~ctu'!r. al S.~rvic:.::e:.::$<-' .::.: lnc.:.c::..:· ______________________ _ 

39.99 
PART /11: ASSET INFORMATION 

United Actuarial Services, Inc. Page 25 

39. 100 
Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

MARKET AND ACTUARIAL FUND VALUES 

Asset information extracted from the fund's financial statements audited by Yurchyk & 

Davis CPA's, Inc. 

Market/Actuarial Value 

of Fund Investments 

as of April 30, 2015 2014 2013 

Invested assets 

Common stocks $ 12,029,751 $ 11,198,393 $ 8,957,610 

Equity mutual funds 652,435 865,899 3,116,829 

Preferred stocks 3,515 9,472 

Mutual Funds 3,499,900 5,056,149 5,424,073 

Corporate bonds 247,355 127,061 231 '128 

US government securities 296,326 477,228 867,828 

Money market funds 199,153 205,961 179,055 

Cash 379,447 287,323 276,188 

Preeaid assets 1,476 1,736 1,605 

17,309,358 18,229,222 19,054,316 

Net receivables* 102,506 112,498 46,703 

Market value $ 17,411,864 $ 18,341,720 $ 19,101,019 

Fund assets- Actuarial value 

Market value $ 17,411,864 s 18,341,720 s 19,101,019 

less: Deferred investment 

g_ains and {!osses2 (397.862) {243,118) 407.029 

Actuarial value $ 17,809,726 s 18,584,838 $ 18,693.990 

Actuarial value as a 

percentage of market value 102.29% 101.33% 97.87% 

• Equals receivables. less any liabilities 

Unite d Actuarial Services, Inc. 

Page 26 

39. 101 
Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

FLOW OF FUNDS 

Asset information extracted from the fund's financial statements audited by Yurchyk & 

Davis CPA's, Inc. 

Plan Year Ending 

Apri/30, 2015 2014 2013 

Market value at beginning of 

plan year $ 18,341,720 $ 19,101,019 $ 19,61 4,346 

Additions 

Employer contributions 934,649 672,704 761 ,064 

Net investment income* 1,162,453 1,486,617 1,604,682 

Other income 4,888 6,568 

2,097,102 2,164,209 2,372,314 

Deductions 

Benefits paid 2,924,390 2,832.408 2,769,867 

Net exeenses• 102,568 91,100 115,774 

3,026,958 2,923,508 2,885,641 

Net increase (decrease) (929,856) (759,299) (513,327) 

Adjustment 

Market value at end of 

plan year $ 17,41 1,864 $ 18,341 ,720 $ 19,101,01 9 

Cashflow 

Contr. -ben. -exp. (2,092,309) (2,250,804) (2,124,577) 

Percent of assets -12.02% -12.27% -11.12% 

Estimated net investment return 

On market value 6.72% 8.27% 8.65% 

On actuarial value 7.51% 12.1 6% 3.00% 

Investment expenses have been offset against gross investment income. 

United Actuarial Services, Inc. 

Page 27 

39.1 02 
Asset Information 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

INVESTMENT GAIN AND LOSS 

Investment Gain or Loss 

Plan Year Ending April30, 2015 

Expected market value at end of plan year 

Market value at beginning of plan year 

Employer contributions and non-investment income 

Benefits and expenses paid 

Expected investment income (at B.OO"A. rate of return) 

Actual market value at end of plan year 

less: Expected market value 

I nveslmenl gain or (loss) 

History of Gains and L=-o::.:s;;:s;:-:e:..:s~J--,--;---;- -;--, 

Plan Year Investment 

Ending Gain 

April 30, or (Loss) 

2015 $ (221,192) 

2014 48,372 

2013 120,255 

2012 ( 1.490,165) 

2011 1,210,485 

Total $ (332.245) 

Deferred Investment Gains and (Losses) 

Plan Year 

$ 

$ 

18,341.720 

934,649 

(3,026.958) 

1.383.645 

17,633,056 

17,411,864 

17,633,056 

(221,192} 

Ending Amount of Gain or (Loss) Deferred as of April 30, 

April 30, 2015 I 2016 I 2017 I 2018 

2015 $ (176.954) s (132.715) s (88,477) $ (44,238) 

2014 29,023 19,349 9.674 - 2013 48,102 24,051 - - 2012 (298,033) - - - Totals s (397.862) $ i89.3151 s (78,803) $ (44,238) 

United Actuarial Services, Inc. 

Page 28 

39.103 
PART IV· ENROLLED ACTUARY'S REPORT 

Unlted_Actuarial Services, Inc. 

Pege 29 

39.104 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

NORMAL COST/ACTUARIAL LIABILITY 

Normal Cost as of May 1, 

Active participants - service prior to valuation date $ 

Active participants - service after valuation date 

Anticipated administrative expenses (beg. of year) 

Total normal cost $ 

Unfunded Actuarial Liability as of 

May 1, 

Actuarial liability 

Participants currently receiving benefits $ 

Inactive vested participants 

Active participants - service prior to val. date 

Active earficieants - service after val. date 

less: Fund assets (actuarial value) 

Unfunded actua ab li t~ ~not less than Ol $ 

2015 

$ 

98,555 

115,523 

214,078 $ 

2015 

22,825,240 $ 

6,504,265 

6.702,907 

36,032,412 

17,809,726 

18,222,686 $ 

2014 

76,843 

115,385 

192,228 

2014 

23,640,628 

6, 173,115 

5,807,497 

35,621 ,240 

18,584,838 

17,036,402 

Page 30 

_United tuar~! ~!;rv e.~,J s.- . __ ····---------------------

39.105 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ACTUARIAL LiABILITY RECONCILIATION/PROJECTION 

Reconciliation of Unfunded Actuarial Liability 

Expected unfunded actuarial liability as of April 30. 2015 

Unfunded actuarial liability as of May 1, 2014 

Normal cost (including expenses) 

Actual contributions 

Interest to end of plan year 

Increase (decrease) due to: 

Experience (gain) or loss 

Plan amendment 

Change in actuarial assumptions 

Change in actuarial method 

Net increase (decrease) 

Unfunded actuarial liability as of May 1. 2015 

Projection of Actuarial Liability to Year End 

Actuarial liability as of May 1, 2015 

Expected increase (decrease) due to: 

Normal cost (excluding expenses) 

Benefits paid 

Interest on above 

Interest on actuarial liability 

Net expected increase (decrease) 

Expected actuarial liability as of April 30, 2016 

Page 31 

$ 

$ 

$ 

$ 

17,036.402 

192,228 

(934,649) 

1,340.901 

17,634.882 

(212,291) 

800,095 

587,804 

18,222,686 

36,032,412 

98,555 

(2,937,358) 

(106,185) 

2,792,512 

(152,476) 

35,879,936 

United Actuarial Services, Inc! .. - --···- ------------ 39.106 
Funding Period Calculation 

Actuarial Study as of May 1, 

Unfunded actuarial liability 

Actuarial liability 

less: Fund assets (actuarial value) 

Funds available to amortize unfunded 

Anticipated contributions (beg. of yr.) 

less: Normal cost (including expenses) 

Funding period (years) 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

2015 

$ 36,596,402 

17,809,726 

18,786,676 

890,565 

185,142 

s 705,423 

• 

FUNDING PERIOD 

$ 

$ 

2014 

36,039,560 

18,584,838 

17,454,722 

634,819 

170.289 

464,530 

• 

Anticipated contributions are insufficient to pay normal cost and amortize unfunded liability. 

Page 32 

39.107 
Current Liability as of May 1, 2015 

Vested current liability 

Participants currently receiving benefits 

Inactive vested participants 

Active participants 

Nonvested current liability 

Inactive vested participants 

Active participants 

Total current liability 

Projection of Current Liability to Year End 

Current liability as of lvlay 1, 2015 

Expected increase (decrease) due to: 

Benefits accruing 

Benefits paid 

Interest on above 

Interest on current liability 

Net expected increase (decrease) 

Expected current liability as of April 30. 2016 

_':lnited Actuarial Services, Inc. 

Page 33 

39. 10R 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

CURRENT LIABILITY 

$ 

$ 

$ 

$ 

33,091,499 

13,207, 196 

13.767,351 

60.066,046 

43,200 

43,200 

60.109.246 

60,109.246 

229.675 

(2.937,358) 

{41,754) 

2,025,682 

{723.755) 

59,385,491 
Projection of Assets 

for Full Funding Limit 

Asset value as of May 1, 2015 

Expected increase (decrease) due to: 

Investment income 

Benefits paid 

Exeenses 

Net expected increase (decrease) 

Ex~ected value as of April 30, 2016• 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

FULL F UNDING LIMIT 

Market Actuarial 

Value Value 

$ 17,411,864 $ 17,809,726 

1,230,947 1,261 ,781 

(2,937,358) (2,937,358) 

( 120,000) (120,000) 

(1 ,826,411) ( 1 '795 ,577) 

$ 15,585,453 $ 16,014,149 

Ignoring expected employer contributions (as required by regulation). 

Full Funding Limit 

as of Apri/30, 2016 

ERISA full funding limit (not less than 0) 

Actuarial liability 

less: Assets (lesser of market or actuarial) 

elus: Credit balance (wlinterest to 't.ear endl 

Full funding limit override 

(not less than 0) 

90% of current liability 

less: Assets (actuarial valuel 

Full funding limit (greater of ERISA limit 

and full fund ~ overrid e~ 

Page 34 

United Actuarial Services, Inc. ===.!:!.:=C!!!.=~~==-=~--. ··-.. ··-· .. ··· 

39.109 

For Minimum For Maximum 

Required Deductible 

$ 35,879,936 $ 35,879,936 

15,585,453 15,585,453 

n/a 

20,294,483 20,294,483 

53,446.942 53,446,942 

16,014,149 16.014,149 

37,432,793 37,432,793 

$ 37,432,793 $ 37.432,793 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

MINIMUM REQUIRED CONTRIBUTION AND FULL FUNDING CREDIT 

Minimum Required Contribution 

Plan Year Beginning May 1, 2015 

Minimum funding cost 

Normal cost (including expenses) 

Net amortization of unfunded liabilities 

Interest to end of plan year 

Full funding limit 

Net charge to funding std. acct. (lesser of above} 

less: Credit balance with interest to year end 

Minimum Required Contribution (not less than 0) 

Full Funding Credit to Funding Standard 

Account Plan Year Ending April 30, 2016 

Full funding credit (not less than 0) 

Minimum funding cost (n.c., amort., in!.) 

less: full funding limit 

Page 35 

$ 

$ 

$ 

$ 

214,078 

2,316,688 

196,134 

2,726,900 

37,432,793 

2,726,900 

(9,338,627) 

12,065,527 

2,726,900 

37,432,793 

~~~~~~~~

United Actuarial Services, ~~~Inc. --------··----------------------------

39. 1 I() 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

MAXIMUM DEDUCTIBLE CONTRIBUTION 

The maximum amount of tax-deductible employer contributions made to a pension plan is 

determined in accordance with Section 404(a) of the Internal Revenue Code. For a 

multiemployer pension plan, Section 413(b}(7) of lhe Internal Revenue Code and IRS 

Announcement 98-1 provide that. if anticipated employer contributions are less than the 

deductible limit for a plan year, then all employer contributions paid during the year are 

guaranteed lo be deductible. If anticipated employer contributions exceed the deductible 

limit, the Trustees have two years from the close of the plan year in question to 

retroactively improve benefits to alleviate the problem. 

Maximum Deductible Contribution 

Plan Year Beginning May 1, 2015 

Preliminary deductible limit 

Normal cost (including expenses) 

10-year limit adjustment (using "fresh start" al/emalive) 

Interest to end of plan year 

Full funding limit 

Maximum deductible contribution override 

140% of vested current liability projected to April 30, 2016 

less: Actuarial value of assets projected to April 30, 2016 

Maximum deductible contribution• 

Anticipated employer contributions 

$ 

s 

s 

214,078 

2,492,041 

209,724 

2,915,843 

37,432,793 

83,079.936 

16,014,149 

67,065,787 

67,065,787 

925,074 

' Equals the Iasser of the preliminary deductible limit and the full funding limit, out not less than the 

maximum deductible contribution override. 

United Actuarial Services, Inc. Page 36 

39.1 t I 
Presumotive Method 

Vested 

Apri/30. Benefits 

Interest Rate 

1996 7.50% 

1997 8.00% 

1998 8.00% 

1999 8.00% 

2000 8.00% 

2001 8.00% 

2002 8.00% 

2003 8.00% 

2004 8.00% 

2005 8.00% 

2006 8.00% 

2007 8.00% 

2008 8.00% 

2009 8.00% 

2010 8.00% 

2011 8.00% 

2012 8.00% 

2013 8.00% 

2014 8.00% 

2015 7.75% 

• Actua.nal Value 

United Actuarial Services, Inc. 

Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

HISTORY OF UNFUNDED VESTED BENEFITS 

Value of Unfunded Unamortized 

Vested Vested Portion of 

Benefits Asset Value' Benefits VAB 

14,979,005 17, 173,322 (2.194,317) 

16,351,121 21,066,522 (4,715,401) 

19,058,282 23,830,467 (4,772, 185) 

21,320,239 26,730,714 (5,410,475) 

24,445,204 29,343,521 ( 4.898,317) 

26,000,291 31,034,213 (5,033,922) 

27,902,578 30,715,460 (2,812,882) 

30,036,998 29,281,868 755.130 

30,928,911 29,168,067 1,760,844 

32,289,274 27,881,442 4,407,832 

33,853,627 27,199,546 6,654,081 

33,998,097 27,255,918 6,742,179 

34,672,083 27,249,628 7,422,455 

35,484,548 21,019,994 14,464,554 1,722.031 

34,484,817 23,588,308 10.896,509 1,658.609 

34,740,407 22,054,814 12,685.593 1 ,590,114 

35,419,483 20,236,556 15.182,927 1 ,516,139 

35,456,723 18,693,990 16,762,733 1,436.246 

35,571,497 18,584,838 16,986,659 1,349,962 

35,983, 11 1 17,809,726 18,173,385 1,256.775 

Page 37 

39. 11 2 
Enrolled Actuary's Report 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ASC 960 INFORMATION 

The following displays are intended to assist the fund's auditor in complying with 

Accounting Standards Codification 960. The results shown are not necessarily indicative 

of the plan's potential liability upon termination. 

Present Value of Accumulated Benefits 

Actuarial Study as of May 1, 2015 

Present value of vested accumulated benefits 

Participants currently receiving benefits $ 22.825,240 

Other participants 13,157.871 

35.983.111 

Nonvested accumulated benefits 49.301 

Present value of all accumulated benefits $ 36,032,41 2 

Market value of plan assets $ 17,411 ,864 

Interest rate used to value benefits 7.75% 

Changes in Present Value of Accumulated Benefits 

Present value or accumulated benefits as of May 1, 2014 

Increase (decrease) due to: 

Plan amendment 

Change in actuarial assumptions 

Benefits accumulated and experience gain or loss 

Interest due to decrease in discount period 

Benefits paid 

Net increase (decrease) 

Present value of accumulated benefits as of May 1. 2015 

United Actuarial Services, Inc. 

Page 38 

39.113 

$ 

$ 

$ 

$ 

$ 

2014 

23,640,628 

11,930,869 

35,571,497 

49,743 

35,621,240 

18,341,720 

8.00% 

35,621,240 

800,095 

(314,232) 

2,849,699 

{2,924,390) 

411 ,172 

36,032,412 
APPENDICES 
Origins/Purpose 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

PLAN HISTORY 

The Bricklayers and Masons Local Union No. 7 Pension Plan was established effective 

February 1, 1968 as a result of a Collective Bargaining Agreement between the 

Associated General Contractors of America, Akron Chapter, the General Contractors 

Association of Akron and Akron Masons Contractors Association and the Bricklayers' 

and Masons' Local No. 7, Ohio of Bricklayers, Masons and Plasterers International 

Union of America. The Bricklayers' and Masons Local No. 23 became a Participating 

Union under the Plan as of July 1, 1969 and the Bricklayers' and Masons' Local No. 13 

became a Participating Union under the Plan as of April 22, 1970. Both Locals have 

since merged into Local No. 7. 

The Pension Plan is managed under the provisions of the Labor Management Relations 

Act by a Board of Trustees consisting of an equal number of representatives from Labor 

and from Management. 

The purpose of the pension plan is to provide Normal and Early Retirement Benefits, 

Total and Permanent Disability Benefits, Joint and Survivor Benefits, Deferred Vested 

Benefits and Death benefits. Benefits first became payable on February 1, 1968. 

Employer Contributions 

The Pension Plan is financed entirely by contributions from the employers as specified in 

the Collective Bargaining Agreements. The history of recent hourly contribution rates is 

shown in the following table: 

Reciprocity 

r---------------,r- H~o-llr-.~~C~o-n u-.ib-u~tt~.o-n--' 

Effective Date Rate* 

May 1, 1979 

June 1, 1981 

June 19, 1982 

June 1. 1983 

June 1, 1984 

June 1. 1990 

June 1, 1996 

June 1, 2006 

June 1, 2007 

Sept. 1, 2008 

June 1, 2009 

June 1, 2010 

June 1, 20 11 

June 1. 2012 

June 1, 2013 

June 1. 2014 

June 1, 2015 

$0.80 

1.05 

1.25 

2.00 

3.00 

3.27 

330 

3.55 

4.01 

4.41 

4.81 

5.21 

5.61 

6.01 

6.41 

6.46 

6.66 

EffatAi'la r•My 1, 2000, only $2.00 or the ho\•rly rate v.,u be 

used to c;slculate benefits. 

The Trustees have entered into various money follows the man reciprocity agreements 

whereby a participant who transfers employment between signatories to such 

agreements will not lose pension credits. 

United Actuarial Services, Inc. Page A-1 

39. 11 5 
Participation 

Year of service 

Break in service 

Forfeited service 

Normal retirement benefit 

Eligibility 

Monthly amount 

Early retirement benefit 

Eligibility 

Monthly amount 

Optional forms of 

payment 

United Actuarial Services, Inc. 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

SUMMARY OF PLAN PROVISIONS 

May 1 following completion of 435 hours during a twelve 

consecutive month period, or prior November 1, if earlier. 

Plan year with at least 435 hours. 

Plan year with less than 435 hours. 

A non-vested participant with a number of consecutive 

breaks in service equaling the greater of 5 or his years of 

service. A vested participant cannot forfeit his years of 

service. 

Age 62 and 5 years of service or, if earlier, age 65 and 5 

years of participation. 

$1 .00 per year of past service plus 4.10% of employer 

contributions made on and after February 1, 1968 and 

before May 1, 2003 plus 3.00% of employer contributions 

made on and after May 1 . 2003 and before May 1, 2005 

plus 1.00% of employer contributions made on and after 

May 1, 2005 and before May 1, 2006 plus 1 .00% of $2.00 

of employer contributions made on and after May 1. 2006. 

Payable for life. 

Age 55 and 10 years of service. 

Normal, reduced by .5833% for each month under age 

62. Payable for life. 

' Normal, reduced by 1/3 of 1% for each month under age 

62 for benefits of participants who were at least age 55 

and had at least 10 years of service on May 1, 2009. 

• 60 month certain and life 

• Joint and 50% survivor* 

• Joint and 75% survivor* 

• Joint and 100% survivor' 

* If spouse pre-deceases participant, amount in pay 

status pops-up to benefit amount that would have 

been payable if the participant had not elected the 

joint and survivor annuity. The cost of the pop-up 

feature is not subsidized by the fund. 

Page A-2 

-·· ~- -- ------

39. 11 6 
Total and permanent 

disability benefit 

Eligibilily 

Deferred vested benefit 

Eligibility 

Monthly amount 

Pre-retirement surviving 

spouse benefit 

Eligibility 

MontlJ/y amount 

Eligibility 

Monthly amount 

Pre-retirement 5 year 

certain death benefit 

Eligibility 

United Actuarial Services, Inc. 

Appendix A- Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

SUMMARY OF PLAN PROVISIONS (CONTINUED) 

No longer available as of May 1, 2009. 

5 years of service .• termination of covered employment. 

100% of normal, payable at normal or at early with 

reduction. Payable for life. 

Death of participant with eligible spouse after becoming 

eligible for, but prior to, retirement. 

50% of participant's joint and 50% survivor annuity 

payable to spouse for life commencing the first day of the 

month following participant's death. 

Death of participant with eligible spouse prior to earliest 

retirement age. 

50% of participant's joint and 50% survivor annuity 

payable lo spouse for life commencing at participant's 

earliest retirement date. 

" The cost of the pre-retirement surviving spouse benefit 

is paid by the participant. 

Benefit eliminated for deaths on or after May 1. 2009, 

effective May 1, 2009. 

Page A-3 

39.117 
Future service benefit 

Effective dale 

Adoption date 

Provisions 

Thirteenth check 

Effective date 

Adoption date 

Provisions 

Vesting schedule 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

~!ted Actuarial Services, Inc. 

May 1, 1996 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RECENT PLAN MODIFICATIONS 

December 6, 1996 

The future service benefit accrual rate was increased 

from 3.20% to 3.30% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1996. The increase applies to active participants 

as well as inactive vested participants. 

January 1, 1997 

December 11 . 1997 

Participants receiving benefits received a one-time 13"' 

check equal to the full amount of the monthly benefit or 

$100, whichever is greater. 

May 1. 1997 

June 4, 1997 

Vesting changed from a 5/1 0-year graded schedule to a 

5-year cliff schedule for active participants who work one 

hour after the effective date. 

May 1, 1997 

March 6. 1998 

The future service benefit accrual rate was increased 

from 3.3% to 3.85% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1997. The increase applies to active participants 

only. 

Page A-4 

39. 11 8 
Retiree increase 

Effective date 

Adoption dale 

Provisions 

Future service benefit 

Effective dale 

Adoption date 

Provisions 

Retiree increase 

Effective date 

Adoption date 

Provisions 

Thirteenth check 

Effective date 

Adoption dale 

Provisions 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED) 

May 1, 1997 

March 6, 1998 

The monthly benefits being paid to retirees who retired 

prior to May 1, 1997 were increased 5%. 

May 1, 1998 

December 4, 1998 

The future service benefit accrual rate was increased 

from 3.85% to 4.05% of employer contributions for 

participants who retire or become disabled on or after 

May 1. 1998. The increase applies to active participants 

only. 

May 1, 1998 

December 4, 1998 

The monthly benefits being paid to retirees who retired 

prior to May 1, 1998 were increased 4%, with a minimum 

of $10. 

December 1, 1998 

December 4, 1998 

Participants receiving benefits received a one-time 13'" 

check equal to the full amount of the monthly benefit or 

$50, whichever is greater. 

Page A-5 

United Actuarial Services.- I n o:;. ·-------------··-··-·--------

39.119 
Normal retirement age 

Effective dale 

Adoption date 

Provisions 

Future servi ce benefit 

Effective date 

Adoption date 

Provisions 

Retiree increase 

Effective date 

Adoption date 

Provisions 

Early retirement factor 

Effective date 

Adoption date 

Provisions 

United Actuarial Services, Inc. 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RECENT P LAN MODIFICATIONS (CONTINUED) 

May 1, 1997 

March 5, 1999 

Normal retirement age was changed from age 62 and 1 0 

years of service to age 62 and 5 years of service. 

May 1, 1999 

February 24, 2000 

The future service benefit accrual rate was increased 

from 4.05% to 4. 10% of employer contributions for 

participants who retire or become disabled on or after 

May 1, 1999. The increase applies to active participants 

only. 

May 1, 1999 

February 24, 2000 

The monthly benefits being paid to retirees who retired 

prior to May 1, 1999 were increased 5%, with a minimum 

of $10. 

May 1, 1999 

February 24, 2000 

The early retirement factor was changed from Y, of 1% to 

1/3 of 1% for each month under age 62 for participants 

who earn at least one hour of service on or after 

May 1, 1999. 

Page A-6 

39.120 
Thirteenth check 

Effective date 

Adoption dale 

Provisions 

Joint and 100% Option 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption dale 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

United Actuarial Services, Inc. 

Appendix A - Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RECENT PLAN M ODIFICATIONS (CONTINUED)_ 

December 1. 1999 

February 24, 2000 

Participants receiving benefits received a one-time 13'h 

check equal to one-half the amount of the monthly benefit 

or $50, whichever is greater. 

January 1, 2000 

February 24, 2000 

A Joint and 100% survivor option was added. 

May 1, 2003 

January 10, 2003 

The future service benefit accrual rate was decreased 

from 4.10% to 3.00% for employer contributions made 

after May 1, 2003 for participants who retire or become 

disabled on or after May 1. 2003. The decrease applies 

to active participants only. 

May 1, 2005 

February 11 , 2005 

The tutu re service benefit accrual rate was decreased 

from 3.00% to 1.00% for employer contributions made 

after May 1, 2005 for participants who retire or become 

disabled on or after May 1. 2005. The decrease applies 

to active participants only. 

Page A-7 

39.12 1 
Future service benefit 

Effective date 

Adoption date 

Provisions 

Future service benefit 

Effective date 

Adoption date 

Provisions 

Future service benefit 

EffecUve date 

Adoption date 

Provisions 

Optional form of benefit 

Effective date 

Adoption date 

Provisions 

Unitec!_Actuarial Services, Inc. 

Appendix A- Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1. 2015 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED) 

May 1. 2006 

March 10, 2006 

The future service benefit accrual rate was increased 

from 1.00% to 1.50% for employer contributions made 

after May 1. 2006. but only $3.00 of the hourly 

contribution rate will be used to calculate benefits. The 

decrease applies to active participants who retire or 

become disabled on or after May 1, 2006. 

May 1. 2006 

April 7, 2006 

The future service benefit accrual rate was decreased 

from 1.50% of $3.00 to 0.00% for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The decrease 

applies to active participants only. 

May 1, 2006 

May 5. 2006 

The future service benefit accrual rate was Increased 

from 0.00% to 1.00% of $2.00 for employer contributions 

made after May 1, 2006 for participants who retire or 

become disabled on or after May 1, 2006. The Increase 

applies to active participants only. 

January 1 , 2008 

September 7, 2007 

A qualified joint and 75% benefi1 option was added. 

Page A-8 

39.122 
Early retirement factor 

Effective date 

Adoption date 

Provisions 

60 month guarantee post· 

retirement death benefit 

Effective date 

Adoption date 

Provisions 

Pre-retirement 5 year 

certain death benefit 

Effective date 

Adoption date 

Provisions 

Total and permanent 

disability benefit 

Effective date 

Adoption date 

Provisions 

Pre-retirement surviving 

spouse benefit 

Effective date 

Adoption date 

Provisions 

United Actuarial Services, Inc. 

Appendix A • Plan Provisions 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RECENT PLAN MODIFICATIONS (CONTINUED) 

May 1, 2009 

September 22, 2008 

The early retirement factor was changed from 113 of 1% 

to .5833% for each month under age 62. Participants who 

are at least age 55 and have at least 1 0 years of service 

on May 1. 2009 will use the 1/3 of 1% reduction. 

May 1. 2009 

September 22, 2008 

The 60 month guarantee post-retirement death benefit is 

removed for participants not yet in pay status on May 1. 

2009. 

May 1. 2009 

September 22, 2008 

The pre-retirement 5 year certain death benefit is 

removed for deaths after May 1, 2009. 

May 1, 2009 

September 22, 2008 

The total and permanent disability benefit is eliminated for 

disabilities after May 1, 2009. 

May 1, 2009 

September 22, 2008 

The cost is paid by the participant. 

Page A-9 

39. 123 
Appendix B ·Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ACTUARIAL ASSUMPTIONS 

The following assumptions are used throughout this report except as specifically noted 

herein. 

Valuation date 

Interest rates 

ERISA rate of return 

used to value liabilities 

Current liability 

Operational expenses 

Mortality 

Assumed plan mortality 

Current liability 

Future retirement rates 

Active lives 

Inactive vested lives 

United Actuarial Services, Inc. 

May 1, 2015 

7.75% per year net of investment expenses. 

3.37% (in accordance with Section 431 (c)(6) of the 

Internal Revenue Code). 

$120,000 per future year. 

RP-2000 Combined Healthy Generational Mortality Table 

projected using scale AA with blue collar adjustment, set 

forward one year for males and females. 

Separate annuitant and non-annuitant rates based on the 

RP-2000 Mortality Tables Report developed for males 

and females as required by Section 431 (c)(6) of the 

Internal Revenue Code. 

When eligible and according to the following schedule: 

Retirement 

Age Rate 

55-59 .05 

60 .10 

61 25 

62+ 1 00 

Resulting in an average expected retirement age of 61 .0. 

If terminated prior to 5/1/99, later of normal retirement age 

or age on valuation date. If terminated after 5/1/99, later 

of earliest retirement age or age on valuation date. 

Page B-1 

- · -···-------- -

39.124 
Special withdrawal rates 

for first 3 years of 

employment 

Withdrawal 

Future Annual 

Worked 

Vested lives 

Non-Vested lives 

Hours 

Appendix 8 - Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ACTUARIAL ASSUMPTIONS (CONTINUED) 

Year of 

Employment 

First 

Second 

Third 

Annual 

Withdrawal 

Rate 

.3500 

.2500 

.1500 

T-8 Turnover Table from The Actuary's Pension 

Hand book (less GAM 51) adjusted after age 49 • 

specimen rates shown below: 

Withdrawal 

Age Rate 

25 .1162 

30 .1121 

35 .1055 

40 .0940 

45 .0754 

50 .0531 

55 .0190 

60 .0100 

62 .0100 

1,1 00 hours, 0 after assumed normal retirement age. 

800 hours, 0 after assumed normal retirement age. 

Future hourly contribution $6.66 

rate 

Age of participants with Based on average entry age of participants with recorded 

unrecorded birth dates birth dates and same vesting status. 

Spouse assumptions 100% assumed married with the male spouse 3 years 

older than his wife. 

Inactive vested lives over Continuing inactive vested participants over age 70 are 

age 70 assumed deceased and are not valued. 

Page B-2 

Unite~ .. :Ac: t~§l r.ial Servic:_es, ..=:cn~ce!.. -------------------- ----

39.125 
QORO benefits 

Section 4151imit 

assumptions 

Appendix B ·Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ACTUARIAL ASSUMPTIONS (CONTINUED) 

Benefits to alternate payee included with participant's 

benefit until payment commences. 

Dollar limit $210,000 per year. 

Assumed form of Qualified joint and 100% survivor annuity. 

payment for those limited 

by Section 415 

Benefits not valued Pre-retirement death benefits following withdrawal or 

disability for active participants. 

Page B-3 

United Act ar a,_,_I ,_,e:,~v"-ic::ce::cs:;,c.:.:n.:.:c:::·c..._ _________ _ --.. -·----- 39. 126 
Appendix B ·Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS 

The non prescribed actuarial assumptions were selected to provide a reasonable long 

term estimale of developing experience. The assumptions are reviewed annually, 

including a comparison to actual experience. The following describes our rationale for 

the seleclion of each non-prescribed assumption that has a significant effect on the 

valuation results. 

ERISA rate of return used 

to value liabilities 

Mortality 

Retirement 

Withdrawal 

Future hours worked 

United Actuarial Services, Inc. 

Future rates of return were modeled based on the Plan's 

current investment policy asset allocation and composite, 

long-term capital market assumptions taken from Horizon 

Actuarial's 2015 survey of investment consultants. 

Based on this analysis, we selected a final assumed rate 

of 7. 75%, which we feel is reasonable. This rate may not 

be appropriate for other purposes such as settlement of 

liabilities. 

The RP 2000 fully generational, combined healthy 

mortality table was chosen as the base table for this 

population. Projected mortality improvement was 

determined using Scale AA. 

Based on the industry of plan participants, the blue collar 

adjustment was applied. 

Finally, a 1-year set forward was applied. This was based 

on data of larger plans in similar industries. 

Actual rates of retirement by age were last studied for this 

plan for the period 1999 to 2005. No further adjustments 

were deemed necessary at this time. 

Actual rates of withdrawal by age were last studied for 

this plan for the period 2006 to 201 0. No further 

adjustments were deemed necessary at this time. 

Based on review of recent plan experience adjusted for 

anticipated future changes in workforce. 

Page 8-4 

39. 127 
Appendix B • Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

ACTUARIAL ASSUMPTIONS USED FOR PROJECTIONS 

The assumptions used for the credit balance and funding ratio projections are the same 

as used throughout the report with the following exceptions. 

Assumed return on fund 

assets 

Current year projections 

Prior year projections 

Future total hours worked 

Current year projections 

Prior year projections 

Contribution rates 

Current year projections 

Prior year projections 

Plan changes 

Current year projections 

Prior year projections 

7.75% 

8.00% 

120,000 for the plan year ending 2015 and thereafter 

102,200 for the plan year ending 2015 and thereafter 

56.66 

$6.46 

None 

None 

Page B-5 

United Actuarial SeJV.i~~~' :::c:.:.------

39.128 
Funding method 

Funding period 

ERISA Funding 

Population valued 

Actives 

Inactive vested 

Retirees 

Asset valuation method 

Actuarial value 

Unfunded vested 

benefits 

Unitecl ~~uaria_ l Services, Inc. 

Appendix B - Actuarial Assumptions and Methods 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

A CTUARIAL METHODS 

Individual entry age normal with costs spread as a level 

dollar amount over service 

Traditional unit credit cost method, effective May 1, 2007. 

Employees who have satisfied the plan's eligibility 

requirements (435 hours worked In a plan year) and who 

had at least one hour during the preceding plan year. 

Vested participants with no hours during the preceding 

plan year. 

Participants and beneficiaries in pay status as of the 

valuation date. 

Smoothed Market Value Method with phase in effective 

May 1, 1996. Each year's gain (or loss) is spread over a 

period of 5 years. The actuarial value is limited to not 

less than 80% and not more than 120% of the actual 

market value of assets in any plan year. 

For the presumptive method, actuarial value. as 

described above, is used. 

Page B-6 

39.129 
Date Source of Change in 

Established Unfunded Liability 

Charges 

5/1/1977 Initial UAL 

5/1/1979 Plan Amendment 

511/1986 Plan Amendment 

51111987 Plan Amendment 

51111989 Plan Amendment 

511/1990 Assumptions 

511/1994 Assumptions 

51111996 Assumptions 

5/111998 Plan Amendment 

5/1/1997 Assumptions 

5/1/1997 Plan Amendment 

5/1/1998 Plan Amendment 

5/1/1999 Plan Amendment 

5/1/2000 Assumptions 

5/1/2000 Plan Amendment 

5/1/2001 Experience Loss 

51112002 Amendment 

51112002 Assumptions 

51112002 Experience Loss 

51112003 Experience Loss 

51112004 Experience Loss 

5/112005 Experience Loss 

5/1/2006 Experience Loss 

5/1/2007 Assumptions 

5/1/2007 Method 

5/1/2008 Experience Loss 

5/112009 Experience 

5/11201 1 Experience 

5/1/2012 Assumptions 

51112012 Experience 

51112013 Experience 

511/2015 Assumptions 

United Actuarial Services, Inc. 

Appendix C - Minimum Funding Amortization Bases 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

- ,-- -- .- 5/1/2015 

Original Original Remaining Period Outstanding 

Amount Period Years I Months Balance 

40 2 0 163,793 

40 4 0 178,079 

30 1 0 74,320 

30 2 0 191,160 

30 4 0 194.269 

30 5 0 90.366 

513,413 30 9 0 284.122 

475,139 30 11 0 301.019 

366,610 30 11 0 232.291 

302.027 30 12 0 202,192 

2,024,332 30 12 0 1,355,119 

1,046,114 30 13 0 734,466 

1,094,569 30 14 0 801.565 

481,195 30 15 0 365.874 

208.860 30 15 0 158,81 1 

350,347 15 1 0 37,896 

20,726 30 17 0 16,793 

685.458 30 17 0 555,405 

1,973.958 15 2 0 411,243 

4,139.652 15 3 0 1,246,362 

1,064.453 15 4 0 411 ,890 

2,241.650 15 5 0 1,045,652 

1,908.358 15 6 0 1,030,679 

30,385 30 22 0 27,531 

48,313 10 2 0 12.840 

296,362 15 8 0 198,969 

6,709,219 15 9 0 4,896,531 

1,462,1 11 15 11 0 1,219,461 

532,014 15 12 0 468,405 

1.652,462 15 12 0 1,454,689 

923,614 15 13 0 852,861 

800,095 15 15 0 800,095 

Page C-1 

39. 130 

51112015 

Amortization I 

Payment 

84,952 

49.621 

74,320 

99.146 

54,133 

20,867 

41,773 

38,660 

29,833 

24.579 

164,729 

85,060 

88,928 

39,067 

16,957 

37,896 

1,680 

55.570 

213,292 

446,621 

114,772 

241,454 

205,349 

2,455 

6,659 

31.829 

719.913 

156.614 

56,939 

176,857 

98,772 

85,432 
Date 

Established 

Credits 

5/1/1988 

5/1/1989 

5/1/1992 

5/111993 

51111995 

511/2003 

5/1/2003 

5/1/2005 

5/1/2005 

5/1/2006 

5/1/2007 

511/2009 

51112010 

51112010 

511/2011 

5/1/2014 

5/1/2015 

! source of Change in 

Unfunded liability 

Method 

Assumptions 

Assumptions 

Assumptions 

Plan Amendment 

Assumption 

Plan Amendmenl 

Assumptions 

Plan Amendment 

Plan Amendment 

Experience Gain 

Plan Amendments 

Assumplions 

Experience Gain 

Assumplions 

Experience Gain 

Experience 

United Actuarial Services, In ~ 

Appendix C • Minimum Funding Amortization Bases 

Brick layers Local No 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

Original 

Amount 

158,607 

113,096 

2,117,342 

41,563 

3,412,714 

652,500 

382,876 

2.291,241 

68,862 

2,238,307 

44,153 

632,588 

212,291 

Original 

Period 

30 

30 

30 

30 

30 

30 

30 

30 

30 

30 

15 

15 

15 

15 

15 

15 

15 

I Remaining Period 

Years Months 

Total Charges: 

3 0 

4 0 

7 0 

8 0 

10 0 

18 0 

18 0 

20 0 

20 0 

21 0 

7 0 

9 0 

10 0 

10 0 

11 0 

14 0 

15 0 

Total Credits: 

Net Charges: 

Less Credit Balance: 

Loss Reconciliation Balance: 

Unfunded Actuarial Liability: 

Page C-2 

39.131 

5/1/2015 

Outstanding 

Balance 

20,014,948 

135,772 

94,231 

4,076 

108,651 

94,373 

94,151 

1,762,645 

36,261 

2,976,292 

580,573 

232,891 

1,672,201 

53.984 

1,754,692 

36,827 

609,290 

212,291 

10,459,201 

9,555,747 

·8,666,939 

0 

18,222,686 

5/1/2015 

Amortization 

Payment 

3,564,929 

48,674 

26,257 

720 

17.381 

12,906 

9,162 

171,534 

3,364 

276,125 

52,762 

41,160 

245,855 

7,383 

239,963 

4,730 

67,597 

22,668 

1,248,241 

2,316,688 
Appendix D- Summary of Endangered and Critical Status Rules 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RULES FOR ENDANGERED AND CRITICAL STATUS 

Background 

The Pension Protection Act of 2006 ("PPA'). enacted in August 2006, established 

special rules for plans in "Endangered" or 'Critical" status. These rules become effective 

with the plan year beginning in 2008 and were originally scheduled to •sunser in 2015. 

The Multiemployer Pension Reform Act of 20 14 ('"MPRA''). enacted in December 2014, 

made the provisions contained in the PPA permanent. MPRA also made numerous 

changes to the PPA rules, including adding a new status for deeply troubled plans: 

Critical and Declining. 

Informally, Critical Status is often referred to as "red zone· and Endangered Status as 

'yellow zone.• A plan that is neither Critical nor Endangered is said to be ·green zone." 

Criteria for Endangered and Critical 

The table below summarizes the criteria for these categorizations. Projected 

deficiencies are calculated as of the last day of each plan year and are based on 

contribution rates codified in bargaining agreements and, if applicable, wage allocations. 

Critical Status ("Red Zone") I Endangered Status ("Yellow Zone") I 

GETTING IN: 

Plan is Critical if it is described in one or Plan is Endangered if it is !!2l Critical and it is 

more of the following: described in one of the following: 

• Funded percentage is less than 65%, • Funded percentage is lass than 80%, or 

and, inability to pay benefits and 

expenses for next 7 years. or • Projected funding deficiency in the current 

year or next 6 years. 

• Projected funding deficiency (DQ! 

recognizing extensions) in the current A non-critical plan that meets both of the 

year or next 3 years (next 4 years if preceding criteria is considered "Seriously 

funded at less than 65%}, or Endangered" 

• (1) Contributions are less than current A plan that meets one of the two Endangered 

year costs (i.e. ' normal cost') plus Status criteria above, but was not in Critical or 

interest on any unfunded past liabilities, Endangered for the precodlng year. will remain 

and, (2) value of vested benefits for non- not Critical or Endangered (i.e. ll will be in 

actives is greater than for actives, and, "green zone') provided it is not projected to 

(3) projected funding deficiency (UQl meet either of the two Endangered Status 

recognizing extensions) in the current criteria as of the end of the 1 o'" plan year 

year or next 4 years, or following the certification year 

• Inability to pay benefits and expenses for 

next 5 years. 

United Actuarial Services, l~c. 

Page 0 ·1 

39. 132 
Appendix D- Summary of Endangered and Critical Status Rules 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.} 

Critical Status ("Red Zone") I Endangered Status ("Yellow Zone") 

GETTING IN (cont.): 

A plan with a 5-year amortization extension 

under IRC Section 431(d) that previously 

emerged from Critical Status in PYB 2015 or 

later will re-enter Critical Status 2ll!J£ if it is 

described in one of the following: 

• Projected funding deficiency in the 

current year or next 9 years (including 

amortization extensions). or, 

• Projected insolvency within the next 30 

years 

GETTING OUT: 

Plan emerges from Critical Status when it 

meets all or the following: 

• No longer meets any or the Critical 

Status tests, and, 

• No projected funding deficiencies in the 

current year or next 9 years (including 

amortization extensions), !!!!!l. 

• No projected insolvencies in the next 30 

years 

A plan with a 5-year amortization extension 

under IRC Section 431(d) emerges from 

Critical Status when it meets all the following: 

• No projected funding deficiencies in the 

current year or next 9 years (including 

amortization ex nsions),~. 

• No proJected insolvencies in the next 30 

years 

Plan emerges from Endangered Status when il 

no longer meets the requirements to be 

classified as Endangered or when it enters 

Critical Status 

Page 0-2 

United Actuarial Serv.ices,:...l::n:.cc:::·---------

39. 133 
Appendix D- Summary of Endangered and Critical Status Rules 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.) 

Restrictions for Endangered and Critical Plan s 

The Trustees of a plan that is in Endangered or Critical status face a number of restrictions in 

plan improvements that can be adopted and bargaining agreements that can be accepted. 

Period Endangered/Critical Restrictions 

Date of first certification • No reduction in level of contributions for any participants 

through adoption of funding • No suspension of contributions 

improvement/rehabilitation • No exclusion of new or younger employees 

plan ("'plan adoption period") • No amendment that increases the liabilities of the plan by 

reason of any increase in benefits, change in accrual, or 

chanqe in vestinq unless reouired bv law 

After adoption of a funding • Cannot be amended so as to be inconsistent with funding 

improvement/rehabilitation improvement/rehabilitation plan 

plan until end of funding • No amendment that increases benefits, including future 

improvementlrehabilitation accruals, unless actuary certifies as being paid for with 

period contributions not contemplated in funding improvement! 

rehabilitation plan and still expected to meet applicable 

benchmark after considerinQ the amendment 

Additionally, Critical status plans cannot pay benefits greater than the single life 

annuity once the initial red zone notice is sent unless the benefit is eligible f or 

automatic cash-out. 

Critical and Declining Plans 

Beginning in 2015, plans thai are in Critical Status and are projecting insolvency within 

the next 15 years (20 years in some circumstances) are certified by the actuary as being 

in "Critical and Declining." These plans may have access to new tools that will allow 

them to reduce many previously-untouchable benefits, including benefits for participants 

in pay status. However, these expanded benefit reductions require government 

approval, must not be rejected by a majority of all participants through a vote, and are 

subject to a number of other requirements and limitations. 

Selected Other MPRA Changes (effective with 2015 plan years) 

• Plans projected to be Critical within the next 5 years can elect to be in Critical Status 

immediately 

• New contribution rate increases required by a funding improvement or rehabilitation 

plan are not considered in calculating an employer's withdrawal liability or payment 

schedule 

• If, upon the expiration of a collective bargaining agreement under a funding 

improvement or rehabilitation plan, bargaining parties do not adopt a new agreement 

consistent with an updated schedule, the Trustees must implement the update to the 

schedule previously adopted. 

• PBGC premium doubled and indexed 

PBGC ability to facilitate mergers and partitions expanded 

United Actuarial Services, Inc. Page 0-3 

39.134 
Benefits 

Appendix E- Glossary of Common Pension Terms 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

GLOSSARY OF COMMON PENSION TERMS 

Accrued Benefit: A benefit that an employee has earned (or accrued) through pas! 

participation in the plan. It is the amount payable at normal retirement age. 

Why it matters: Under the law, Accrued Benefits generally may not be reduced 

by plan amendment. The exception to this anti-cutback protection would be for 

"adjustable benefits" that come into play for critical status plans. 

Actuarial Equivalence: Given a set of actuarial assumptions, when two different sets 

of payment scenarios have an equal present value. 

Early Retirement Reduction Factor: A retirement benefit that begins before normal 

retirement age may be reduced. The plan document defines the amount of the 

reduction by formula or a table of factors. This reduction may or may not be 

actuarially equivalent, but its present value can be no less than actuarially equivalent 

to the benefit payable at normal retirement age. 

Benefit Crediting (Accrual) Rate: A general reference to the calculation of the 

amount of monthly retirement benefit earned per dollar contributed or per year or hour 

worked. 

Assets 

Market Value of Assets: The market value of all assets in the fund including on an 

accrued, not cash basis (matching the plan audit). 

Actuarial Value of Assets: The amount of assets recognized for actuarial valuation 

purposes. Recent changes in market value may be partially recognized (there are 

variations allowed on the exact recognition). Generally the actuarial value is limited to 

not be less than 80% or more than 120% of I he market value. 

Why it matters: Many funding calculations use this "smoot/led" asset value 

method to lessen the impact of volatility in t11e market value of plan assets. 

Assumed Rate of Return: Long term assumption of the rate of return on assets 

based upon the diversification mix of invested assets. 

Why it matters: This assumption is used in calculating the present values 

discussed in the Liabilities section below. The Assumed Rate of Return has an 

inverse relationship witll plan liabilities. In other words, a lower Assumed Rate 

of Return increases liabilities, while a higher Assumed Rate of Return 

decreases plan Liabilities. 

Unite~ Actuarial Services, Inc:. 

Page E-1 

39.1 35 
Liabilities 

Appendix E- Glossary of Common Pension Terms 

Bricklayers Local No. 7 Pension Plan 

May 1, 2015 Actuarial Valuation 

GLOSSARY OF COMMON PENSION TERMS (CONT.) 

Present Value of Accrued Benefits: The discounted value of benefit payments 

due in the future but based only on the current Accrued Benefits of each participant. 

The value is based on actuarial assumptions including an assumed rate of 

investment return. 

Why it matters: This liability is one of the primary factors in determining a plan's 

annual PPA funded status {see Funded Ratio). 

Present Value of Vested Benefits: The discounted value of Accrued Benefits that 

are considered vested (non-forfeitable). Benefits that are not vested include those of 

participants who have not satisfied the plan vesting requirement {usually five years of 

service). In addition under the law some death and temporary disability benefits are 

also considered non-vested regardless of service because they are not considered 

protected benefits. 

Why it matters: This liability is the primary driver of a plan's Employer 

Wi/lldrawal Liability. 

Actuarial (Accrued) Liability: For Inactive members this is the same as the Present 

Value of Accrued Benefits above. For active members this depends on the cost 

method selected by the actuary. Under the accrued benefit or traditional unit credit 

cost method this is also the same as the Present Value of Accrued Benefits. Under 

other cost methods (including most commonly entry age normal) this represents an 

alternate allocation of projected benefit cost over the working lifetime of active 

members. Under the entry age normal cost method, the active Actuarial Liability is 

larger than the Present Value of Accrued Benefits. 

Unfunded Actuarial Liability: The Actuarial liability less the Actuarial Value of 

Assets. 

Current Liability: This is similar to the Present Value of Accrued Benefits, but uses 

a statutory, significantly lower, interest rate (equivalent to an expected rate of return 

on a bond only-type portfolio) and statutory mortality tables. The lower interest rate 

means that Current Liability tends to be significantly higher than the Present Value of 

Accrued Benefits. This number has very little impact on multiemployer plans. 

Normal Cost: The present value of all benefits that are expected to accrue or to be 

earned under the plan during the plan year. The way in which a benefit is considered 

to be earned varies with the actuarial cost method. 

Uni~ed ActUil_!'_i<!! Services, Inc. 

Page E-2 

39.136 
Funding 

Appendix E- Glossary of Common Pension Terms 

Bricklayers Local No. 7 Pension Plan 

May 1. 2015 Ac tuarlal Valuation 

GLOSSARY OF COMMON PENSION TERMS (CONT.} 

Funded Ratio (Funded Percentage): Present Value of Accrued Benefits divided by 

the Actuarial Value of Assets. This Is one of two key measures used to determine a 

plan's annual PPA funded status. This may also be referred to as PPA Funded Ratio. 

This must be g realer than 80% to avoid endangered status. 

Credit Balance: The accumulated excess of actual contributions over legally 

required minimum contributions as maintained in the funding standard account. The 

funding standard account is maintained by the actuary in the valuation process and 

reported annually in schedule MB to the Form 5500 filing. 

Accumulated Funding Deficiency: A negative credit balance, indicating an excess 

of total charges to the funding standard account over the total credits to such 

account. Prior to PPA, an accumulated funding deficiency caused an immediate 

excise tax (waiver under PPA if certain conditions are met). After PPA, a current or 

projected funding deficiency is one of the two main criteria used in determining the 

annual PPA status. It can eventually trigger an excise tax levied on contributing 

employers. 

Funding Period: The estimated number of years it would take to pay off the Plan's 

unfunded liabilities (and be 100% funded). This calculation is based on the entry age 

normal liability basis. This is determined by taking the excess of expected 

contributions over expected normal cost and comparing it to the unfunded entry age 

accrued liability. This is a good single measure of plan health that looks at both 

current levels of funding and future expectations. It is also a good indicator of the 

level of risk the plan is taking in funding its future benefits. 

Withdrawal Liability 

Unfunded Vested Benefits (UVB): Present Value of Vested Benefits less the value 

of plan assets determined on either an actuarial or marl<et value basis. The selection 

of asset measurement is part of the withdrawal liability method of the Plan. 

Employer Withdrawal Liability (EWL): An employer that withdraws from a 

multiemployer plan is liable for its proportionate share of Unfunded Vested Benefits, 

determined as of the date of withdrawal. 

Why it matters: If a contributing employer leaves the plan with Unfunded Vested 

Benefits liability, that employer's allocated share of Employer Withdrawal Liability 

is either assessed, as applicable, or reallocated among the plan's remaining 

active contributing employers. Employer Withdrawal Liability has both 

advantages and disadvantages to the plan. The main upside of Employer 

Withdrawal Liability is that its presence may encourage contributing employers to 

remain in the plan, helping other contributing employers. The disadvantage is 

that EWL may make it more difflcu/1 for a contributing employer to sell the 

company, and possibly may make it more clla/lenging to secure loans and other 

lines of credit. 

United Actuarial Services, Inc. Page E-3 

39.137