Bricklayers & Allied Craftsmen Local No. 7 Pension Plan 

Checklist Item #06 

Docs the application describe the assumptions used, including the new entrant profile, the total 

contribution base units, and the average contribution rates'! Sec section 3.0 I. 

Docu111cnt 6. 1 describes the assumptions used by the Pension Plan's actuHry. Document 6.2 

provides a supplemental report that is based on the actuary's interpretation of the requirements 

under Revenue Procedure 20 16-27, StJclion 3.0 I. 

6. 1 
3.01 Actuarial Assumptions 

Document 6.1 

Assumptions Used by the Pension Plan's Actuary 

The following set~ forth the actuarial assumptions and methodology used by the Pension 

Plan's actuary in making the determination that the Pension Plan is in critical and declining stahts. 

Net investment return 

Operational expenses 

l'vlort:ulity 

Retirement 

Active lives 

Inactive vested lives 

Disability 

Withdrawal 

6.50% per year for the plan yean; ending 2017-2026; 

7.50% per year thereafter 

$240,000 for the plan year ending 20 17; 

$120,000 per funtrc year thereafter. 

140% of the RP-2014 Blue Collar Mortality Table for employees 

and healthy annuitants adjusted backward to 2006 with the MP2014 projection scale and prt>jected fo rward using the MP-2015 

projection scale. 

Wl1en eligible and according to the following schedule: 

Retirement 

Age Rate 

55-59 .05 

60 .10 

61 .25 

62-r 1.00 

lf' lenninated prior to 51li99, later of normal retirement age or 

age on vuluation date. If tenninatcd after 5/1/99, later of earliest 

retirement age or age on valuation date. 

n/a 

Special withdrawal rates for fi.rst 3 years of employment: 

6.2 
Funu·c hours worked 

Fun1rc contributions 

Year of 

Employment 

First 

Second 

Third 

Annual 

Withdrawal 

Rate 

.35 

.25 

.15 

T·ll 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 .053 1 

55 .0190 

60 .0100 

62 .0100 

125,000 for the plan year ending 20 17; 

140,000 per future year thereafter. 

$6.80 hourly contribution rate effective June l , 2016. 

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

unrecorded birth dates dates and same vesting status. 

Spouse assumptions 1 00% assumed married with the male spouse 3 years older than 

his wife. 

Inactive vested lives over Continuing inactive vested pa1iicipants over age 70 are assumed 

~m d=~a~~~va ~. 

QDRO benefits Benefits to alternate payee included with pmiicipant's benelit 

until payment commences. 

6.3 
Benefits not valued 

Funding method 

Population valued 

Actuarial value of assets 

New Entrant Profile 

Pre-retirement death benefits following withdrawal or disability 

for active patticipants. 

Traditional unit credit cost method, effective May I, 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 

dming the preceding plan year and participants and beneficiaries 

in pay status as of the valuation date. 

Smoothed Market Value Method with phase in effective May I, 

1996. Each year's gain (or loss) is spread over a period of5 years. 

The actuarial value is limited to not less than 80% and not more 

than 120% of the acnml market value of assets in any plan year. 

No open group projections or specilic new entrant profiles are 

used. The projection methodology uses implicit assumptions l()r 

ti.1ture benefit payments. New actives are assumed to keep nom1al 

cost level. These new entrants then join other actives with 

assumed ann ual migration to retired statlls and benefit pay1nents 

proportional to liabilities. Since the current benefit fonn ula does 

not provide large benefits, the impact on cash flows is not 

material. This can be seen in comparing the exhibits t<.1r this 

purpose with other exhibits using open group projections. 

6.4 
Document 6.2 

Supplemental Actual'iaiJuformation 

See the fbi lowing page. 

6.5 
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 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 

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 feet 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 B-4 

6.6