20150409PAC to Staff 34.pdf

UNITED MINE WORKERS OF AMERICA
1974 PENSION PLAN
WASHINGTON, DC

Actuarial Valuation Report
For Plan Year Commencing
July 1, 2014

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TABLE OF CONTENTS
PART I: SUMMARY OF RESULTS 1
5 - Year Summary of Valuation Results 2
Changes From Prior Study 3
Experience vs. Assumptions 4
Rate of Return on Fund Assets 5
Funded Ratios 6
Funding Standard Account 7
PPA Funding Status Report 8
Unfunded Vested Benefits/Employer Withdrawal Liability 9
Participant Data Reconciliation 10
Active Information 11
Retiree Information 12
PART II: SUPPLEMENTAL STATISTICS 13
Hours Worked During Plan Year 14
Contribution Allocation 15
Active Information 16
Inactive Vested Information 18
Retiree Information 19
PART III: ASSET INFORMATION 21
Market and Actuarial Fund Values 22
Flow of Funds 23
Investment Gain and Loss 24
PART IV: ENROLLED ACTUARY’S REPORT 25
Normal Cost/Actuarial Liability 26
Actuarial Liability Reconciliation/Projection 27
Current Liability 28
Full Funding Limit 29
Minimum Required Contribution and Full Funding Credit 30
Maximum Deductible Contribution 31
Reorganization Index 32
ASC 960 Information 33
Benefit Payout Projection 34
APPENDICES
Plan Provisions Appendix A
Actuarial Assumptions and Methods Appendix B
Minimum Funding Amortization Bases Appendix C
Summary of Endangered and Critical Status Rules Appendix D
Glossary of Common Pension Terms Appendix E
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Page 1

PART I: SUMMARY OF RESULTS
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5 - YEAR SUMMARY OF VALUATION RESULTS

Actuarial Study
as of July 1,

2014

2013

2012

2011

2010

PPA Certification
PPA funded status Critical Ser Endg Ser Endg Ser Endg Safe*
Progress under FIP/RP n/a n/a n/a n/a n/a

Funded ratio
PPA certification 0.71 0.71 0.73 0.77 0.81
Valuation report 0.71 0.71 0.72 0.77 0.81

Date of first projected funding deficiency
PPA certification 6/30/19 6/30/19 6/30/19 6/30/18
Valuation report 6/30/19**
* Final PPA status for 2010 was neither Critical nor Endangered status
** Based on assumptions used for the credit balance projection graph as shown on page B-8.

Assets and Liabilities
Asset values ($ 000,000)
Market 4,165 4,093 4,202 4,421 4,254
Actuarial 4,363 4,508 4,658 5,077 5,104

Estimated net investment return
(for preceding plan year)

On market value 15.74% 9.52% 9.04% 18.20% 15.74%
On actuarial value 9.07% 7.61% 3.61% 2.90% 13.09%

Credit balance ($ 000,000) 1,445 1,719 1,838 2,155 2,432

Unfnd. vst. ben. ($ 000,000) 4,392 5,478 5,107 4,371 4,153

Participants
Active 9,218 10,103 10,825 10,427 10,154
Inactive vested 6,676 7,503 10,570 12,231 14,138
Receiving benefits 90,754 92,218 93,662 95,353 96,862
Total 106,648 109,824 115,057 118,011 121,154

Unrecorded dates of birth 5

Average entry age 29.3
Average attained age 44.4
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CHANGES FROM PRIOR STUDY

Changes in Plan Provisions
To the best of our knowledge and belief, the plan provisions underlying this valuation are
the same as those valued last year by the prior actuary.

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:

In accordance with direction from the Settlors, a change was made in the method
used to reflect administrative expenses from a percentage load on plan liabilities to a
flat dollar addition to the normal cost.
As a result of this method change, we assumed a flat load of $25,500,000 on normal
cost for future administrative expenses. This reflects our best estimate of future
operational expenses based on recent plan experience.
We changed the ERISA rate of return assumption from 8.00% to 7.80% gross of
investment expenses and from 7.80% to 7.50% net of investment expenses. These
changes provide our  best  estimate  based  on  the  Plan’s  investment  policy  over future
years.
We changed the current liability interest rate from 3.61% to 3.59%. The new rate is
consistent with established statutory guidelines.

History of Major Assumptions
Actuarial Study as of July 1,
Assumption 2014 2013 2012 2011 2010

Future rate of
investment return
7.80% gross
7.50% net
8.00% gross
7.80% net
8.00% gross
7.8% net
8.00% gross
7.8% net
8.00% gross
7.8% net

Post-retirement
mortality table
RP-2000 Male
EE w/BCA +1
(improve
0.75%/yr for 15
yrs beg 7/1/08
for ages 55-99)
RP-2000 Male
EE w/BCA +1
(improve
0.75%/yr for 15
yrs beg 7/1/08
for ages 55-99)
RP-2000 Male
EE w/BCA +1
(improve
0.75%/yr for 15
yrs beg 7/1/08
for ages 55-99)
RP-2000 Male
EE w/BCA +1
(improve
0.75%/yr for 15
yrs beg 7/1/08
for ages 55-99)
RP-2000 Male
EE w/BCA +1
(improve
0.75%/yr for 15
yrs beg 7/1/08
for ages 55-99)

Future operational
expenses
$ 25,500,000 3.5% of benefit
payments
3.5% of benefit
payments
3.5% of benefit
payments
3.5% of benefit
payments

Average future
hourly contribution
rate
$5.50 $5.50 $5.50 $5.50

Average expected retirement age*
Actives 60.9
Inactive vested 62.0

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

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
June 30, 2014

Expected

Actual

Decrements
Terminations (actual net of rehires) 898 645
Retirements and disabilities 926 703
Deaths - pre-retirement 99 144
Deaths - post-retirement 5,221 4,887

Asset assumptions
Rate of gross investment return on actuarial value 8.00% 9.07%
Operational plus investment expenses 3.5% of benefit
payments plus
0.2% of assets
$ 32,393,000

Comparing  the  prior  year’s  
experience to assumptions
provides indications as to
why overall results may differ
from those expected
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RATE OF RETURN ON FUND ASSETS

Historical Rates of Net Investment Return

Average Rates of Net Investment Return (dollar weighted)
Return on Market Value Return on Actuarial Value
Period Ending June 30, Period Ending June 30,
Period 2014 2013 2014 2013

One year 15.74% 9.52% 9.07% 7.61%
5 years 13.85% 4.52% 9.10% 3.25%
10 years 7.72% 8.95% n/a n/a
15 years 6.06% n/a n/a n/a

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FUNDED RATIOS

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  “snapshot”  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 July 1,

2014

2013

Present value of vested accumulated benefits
Participants currently receiving benefits $ 5,091,764,210 $ 5,115,063,000
Inactive vested participants 296,791,410 316,289,000
Active participants 597,713,951 622,198,000
Total 5,986,269,571 6,053,550,000

Nonvested accumulated benefits 166,980,340 271,373,000

Present value of all accumulated benefits $ 6,153,249,911 $ 6,324,923,000

Actuarial value of assets $ 4,362,514,000 $ 4,508,468,000

Funded ratios
Vested benefits 0.73 0.74
All accumulated benefits 0.71 0.71

Interest rate used to value benefits 7.50% 7.80%

The funded ratio
can be used as
an indication of
ongoing funding
progress
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Summary of Results
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July 1, 2014 Actuarial Valuation
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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 June 30,
2015
(Projected)
2014
(Final)*

Charges
Prior year funding deficiency $ - $ -
Normal cost 46,527,168** 23,543,000
Amortization charges (see Appendix C) 862,080,279 855,236,000
Interest on above 68,145,561 68,544,762
Total charges 976,753,008 947,323,762

Credits
Prior year credit balance 1,444,564,155 1,719,118,000
Employer contributions 102,251,105 105,527,000
Amortization credits (see Appendix C) 402,790,068 398,534,000
Interest on above 141,773,545 168,708,917
ERISA full funding credit - -
Total credits 2,091,378,873 2,391,887,917

Credit balance (credits less charges) $ 1,114,625,865 $ 1,444,564,155

* Estimate. Final values to be provided by prior actuary.
** Includes a flat load of $25,500,000 for future administrative expenses as stated on page 3.

The minimum funding
requirements have been
met for the most recent
plan year
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July 1, 2014 Actuarial Valuation
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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.

Description
Values Used for PPA Certification
2014 2013

Funded ratio 0.71 0.71
Date of first projected funding deficiency 6/30/2019 6/30/2019
Plan year contributions $ 104,599,946
Normal cost $ 20,636,864
Interest on unfunded liabilities, last PY 132,291,587
Normal cost plus unfunded liability interest $ 152,928,451
PV of vested benefits, nonactive $ 5,452,426,090
PV of vested benefits, active $ 591,929,274
Years of benefit payments in assets 8+ 8+
Certified PPA status Critical Seriously Endngrd
Making progress under FIP/RP n/a n/a

The plan is in Critical
status for 2014
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July 1, 2014 Actuarial Valuation
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UNFUNDED VESTED BENEFITS/EMPLOYER 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
rolling 5 method.

Rolling 5 Method

June 30,
Vested
Benefits
Interest Rate
Value of
Vested
Benefits*

Asset Value**
Unfunded
Vested
Benefits

2010 PBGC*** 8,406,314,000 4,253,508,000 4,152,806,000
2011 PBGC*** 8,792,378,000 4,421,136,000 4,371,242,000
2012 PBGC*** 9,309,607,000 4,202,245,000 5,107,362,000
2013 PBGC*** 9,571,196,000 4,093,377,000 5,477,819,000
2014 PBGC*** 8,557,439,428 4,164,994,000 4,392,445,428

* Includes expenses as outlined under Section 4281 of ERISA.
** Market Value
*** The Value of Vested Benefits was computed using the Pension Benefit Guaranty Corporation's
valuation assumptions for multiemployer plans terminating as of the first day of the Plan Year
following the date shown.
An employer withdrawing
during the coming year may
have withdrawal liability
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July 1, 2014 Actuarial Valuation
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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 Valued As

Active
Active
Electing
Miners
New
Inexperienced
Miners
Terminated* Pensioners

Total
Miners &
Truckers
Non-Retired
Disabled
Retired and
Disabled
Surviving
Spouses

Total as of 7/1/2013 9,724 33 346 106,120 42 62,447 29,771 208,483

Change due to:
New hire 324 0 152 0 0 0 0 476
Rehire 77 0 0 -76 0 -1 0 0
Electing Miners -1 1 0 0 0 0 0 0
New Inexperienced Miners -5 0 5 0 0 0 0 0
Termination -693 -2 -27 722 0 0 0 0
Retirement and disability -703 0 0 -1,265 0 1,968 0 0
New beneficiary 0 0 0 0 0 0 1,279 1,279
Death -12 0 0 -132 0 -2,464 -2,423 -5,031
Data adjustment 0 0 -1 49 0 -22 199 225
Net change: -1,013 -1 129 -702 0 -519 -945 -3,051

Total as of 7/1/2014 8,711 32 475 105,418 42 61,928 28,826 205,432**
* Based upon entry age and service assumptions it was assumed that 6,676 terminated miners and truckers and no non-retired disabled have vested rights. All
non-retired terminated participants over age 63 are assumed to be either dead or ineligible to collect a pension and have thus been excluded from the count of
participants with vested rights. Those assumed to be nonvested are excluded from plan costs and liabilities. Terminated counts shown do not include the 0.6% load for unreported prior 1950 Pension Plan vested terminated participants.

** In addition, there are 938 spouses of prior 1950 Pension Plan pensioners who are not currently eligible for benefits, but can become eligible when the pensioner
dies.
The data reconciliation table
shows the movement of
participants from one class
to another
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ACTIVE INFORMATION

Number of Participants
Age*

Actives

Electing Miners
New Inexperienced
Miners
Terminated Vested
Participants**

< 25 294 1 108 0
25-29 824 0 103 18
30-34 1,081 3 74 96
35-39 1,066 5 68 160
40-44 1,076 7 48 199
45-49 779 2 40 255
50-54 787 5 28 975
55-59 1,677 4 6 3,271
60-64 1,017 3 0 1,743
65+ 110 2 0 0
Totals 8,711 *** 32 475 6,717

The average age and credited service for active employees are 45.0 and 13.2, respectively.
The average age and combined credited/supplemental service for electing miners are 46.7
and 12.8, respectively.
The average age and supplemental service for new inexperienced miners are 33.1 and 2.0,
respectively.
The average monthly benefit for vested terminated participants is $530.75

* Age was assumed based on the average age of those with the same status code for 5 Terminated Vested Participants
whose age was missing.

** Terminated Vested Participants counts listed here include the 0.6% load for unreported prior 1950 Pension Plan vested
terminated participants.

*** Of this number, 5,825 were assumed to have vested rights.
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RETIREE INFORMATION

Number of Participants
Age Regular
Retirees
Disabled
Retirees
Surviving
Spouses

< 55 111 246 546
55-59 5,032 1,174 1,089
60-64 12,237 2,171 2,104
65-69 13,028 2,196 3,111
70-74 9,063 1,577 3,515
75-79 6,002 908 4,059
80-84 3,639 367 4,796
85+ 4,031 146 9,606
Totals 53,143 8,785 28,826

The average monthly benefit for regular retirees is $649.
The average monthly benefit for disabled retirees is $563.
The average monthly benefit for surviving spouses is $334.

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PART II: SUPPLEMENTAL STATISTICS
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July 1, 2014 Actuarial Valuation
Page 14

HOURS WORKED DURING PLAN YEAR

History of Actual and Expected Total Hours Worked

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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 July 1, 2014

Benefit Accrual
22%
Expenses
25% Plan Funding
53%
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ACTIVE INFORMATION

Active Participants* by Age and Service as of July 1, 2014
Years of Service
Age < 5 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40+ Total

< 25 393 9 - - - - - - - 402
25-29 706 221 - - - - - - - 927
30-34 639 465 54 - - - - - - 1,158
35-39 540 468 124 7 - - - - - 1,139
40-44 500 487 120 21 3 - - - - 1,131
45-49 332 355 82 35 16 1 - - - 821
50-54 188 192 75 34 183 120 14 14 - 820
55-59 79 86 43 46 184 991 46 212 - 1,687
60-64 15 30 14 25 54 616 60 194 12 1,020
65-69 - 6 5 - 3 25 43 3 19 104
70+ 1 1 1 - - - 1 1 4 9
Totals 3,393 2,320 518 168 443 1,753 164 424 35 9,218

Unrecorded
DOB - - - - - - - - - -

Total
Active
Lives 3,393 2,320 518 168 443 1,753 164 424 35 9,218
* Includes 32 active electing miners and 475 new inexperienced miners.

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ACTIVE INFORMATION (CONT.)

History of Ratio of Actives to Retired Participants

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July 1, 2014 Actuarial Valuation
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INACTIVE VESTED INFORMATION

Inactive Vested Participants* by Age as of July 1, 2014

Age Group**

Number
Estimated Deferred
Vested Benefits

< 30 18 $ 6,842
30-34 96 39,823
35-39 160 69,762
40-44 199 92,730
45-49 255 128,336
50-54 975 578,021
55-59 3,271 1,747,674
60-64 1,743 901,369
65-69 - -
70+ - -
Total inactive vested lives 6,717 $ 3,564,557

* Amount payable at assumed retirement age as used in the valuation process. Amount payable and
inactive counts include the 0.6% load to inactive vesteds.
** Age was assumed based on the average age of those with the same status code for 5 participants
whose age was missing.

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July 1, 2014 Actuarial Valuation
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RETIREE INFORMATION

Benefits Being Paid by Form of Payment as of July 1, 2014
Monthly Benefits Being Paid
Form of Payment Number Total Average Smallest Largest

1950 Pensioners 2,219 $ 617,990 $ 278 $ 121 $ 425
1974 Pensioners 50,924 33,894,428 666 57 2,889
Disability 8,785 4,944,514 563 249 1,764
Surviving spouses 28,826 9,629,820 334 74 1,945
Totals 90,754 $ 49,086,752 $ 541 $ 57 $ 2,889

Retirees by Age and Form of Payment as of July 1, 2014
Form of Benefits Being Paid
Age
Group
1950
Pensioners
1974
Pensioners Disability

Total

< 40 - - 5 5
40-44 - 2 10 12
45-49 - 1 40 41
50-54 - 108 191 299
55-59 - 5,032 1,174 6,206
60-64 70 12,167 2,171 14,408
65-69 276 12,752 2,196 15,224
70-74 340 8,723 1,577 10,640
75-79 335 5,667 908 6,910
80-84 349 3,290 367 4,006
85-89 454 2,194 125 2,773
90-94 276 857 18 1,151
95+ 119 131 3 253
Totals 2,219 50,924 8,785 61,928

plus: Surviving spouses 28,826
Total receiving benefits 90,754
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RETIREE INFORMATION (CONT.)

Age of Participants Retiring from Active or Inactive Vested Status During
Prior Plan Year (excludes beneficiaries and disability retirements)
Age at Plan Year Ending June 30,
Retirement 2014

< 45 1
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 4
53 5
54 8
55 113
56 309
57 169
58 148
59 127
60 132
61 129
62 181
63 289
64 102
65 79
66+ 161
Totals 1,957

History of Average Retirement Ages
(excludes beneficiaries and disability retirements)
Retirement During Plan Year
Ending In:

Number
Average
Retirement Age

2014 1,957 60.3

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PART III: ASSET INFORMATION
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Asset Information
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July 1, 2014 Actuarial Valuation
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MARKET AND ACTUARIAL FUND VALUES

Asset  information  extracted  from  the  fund’s  financial  statements  audited by Bond Beebe
Accountants & Advisors.

Market/Actuarial Value
of Fund Investments
as of June 30,

2014

2013

2012

Invested assets
Corporate stocks - common $ 744,339,000 $ 774,456,000 $ 726,405,000
Corporate stock - preferred 3,143,000 3,326,000 1,645,000
Registered inv. companies 663,090,000 562,872,000 374,252,000
Common/collective trusts 1,406,195,000 1,355,286,000 1,227,746,000
Partnership/joint venture 458,560,000 484,651,000 559,064,000
Real estate 170,326,000 184,612,000 236,626,000
Corporate bonds 67,319,000 68,119,000 142,373,000
US government securities 8,334,000 525,160,000
Short-term & foreign currency 3,275,000 2,187,000 3,372,000
Cash and cash equivalents 212,293,000 334,527,000 146,610,000
Securities held as collateral 101,824,000 61,749,000 299,990,000
Office furniture & equipment 637,000 783,000 807,000
Other 392,695,000 349,420,000 283,642,000
4,232,030,000 4,181,988,000 4,527,692,000

Net receivables* (67,036,000) (88,611,000) (325,447,000)

Market value $ 4,164,994,000 $ 4,093,377,000 $ 4,202,245,000

Fund assets - Actuarial value
Market value $ 4,164,994,000 $ 4,093,377,000 $ 4,202,245,000
less: Deferred investment
gains and (losses) (197,520,000) (415,091,000) (455,940,000)
Actuarial value $ 4,362,514,000 $ 4,508,468,000 $ 4,658,185,000

Actuarial value as a
percentage of market value 104.74% 110.14% 110.85%

* Equals receivables, less any liabilities
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Asset Information
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page 23

FLOW OF FUNDS

Asset  information  extracted  from  the  fund’s  financial  statements  audited by Bond Beebe
Accountants & Advisors.

Plan Year Ending
June 30,

2014

2013

2012

Market value at beginning of
plan year $ 4,093,377,000 $ 4,202,245,000 $ 4,421,136,000

Additions
Employer contributions 105,527,000 115,418,000 129,211,000
Net investment income* 602,634,000 377,054,000 372,958,000
Other income 1,962,000 1,997,000 2,618,000
710,123,000 494,469,000 504,787,000

Deductions
Benefits paid 609,838,000 573,261,000 685,402,000
Net expenses* 32,393,000 36,316,000 38,285,000
642,231,000 609,577,000 723,687,000

Net increase (decrease) 67,892,000 (115,108,000) (218,900,000)

Adjustment 3,725,000 6,240,000 9,000

Market value at end of
plan year $ 4,164,994,000 $ 4,093,377,000 $ 4,202,245,000

Estimated net investment return
On market value 15.74% 9.52% 9.04%
On actuarial value 9.07% 7.61% 3.61%

* Investment expenses have been offset against gross investment income.

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July 1, 2014 Actuarial Valuation
Page 24

INVESTMENT GAIN AND LOSS

Investment Gain or Loss
Plan Year Ending June 30, 2014

Expected market value at end of plan year
Market value at beginning of plan year $ 4,093,377,000
Employer contributions and non-investment income 111,214,000
Benefits and expenses paid (642,231,000)
Expected investment income (at 8.00% rate of return) 303,671,486
3,866,031,486

Actual market value at end of plan year 4,164,994,000
less: Expected market value 3,866,031,486

Investment gain or (loss) $ 298,962,514

History of Gains and (Losses)
Plan Year Investment
Ending Gain
June 30, or (Loss)

2014 $ 298,962,514
2013 62,448,000
2012 47,196,000
2011 408,910,000
2010 307,966,000
2009 (1,437,048,000)
Total $ (314,272,560)

Deferred Investment Gains and (Losses)*
Plan Year
Ending Amount of Gain or (Loss) Deferred as of June 30,
June 30, 2014 2015 2016 2017

2014 $ 239,170,000 $ 179,378,000 $ 119,585,000 $ 59,793,000
2013 37,469,000 24,979,000 12,490,000 -
2012 18,878,000 9,439,000 - -
2011 81,782,000 - - -
2010 - - - -
2009 (574,819,000) (431,114,000) (287,410,000) (143,705,000)
Totals $ (197,520,000) $ (217,318,000) $ (155,335,000) $ (83,912,000)
* 10-year smoothing was elected with respect to the loss incurred during plan year ending 2009.

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Page 25

PART IV: ENROLLED ACTUARY’S REPORT
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July 1, 2014 Actuarial Valuation
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NORMAL COST/ACTUARIAL LIABILITY

Normal Cost as of July 1, 2014

Active participants - service prior to valuation date $ -
Active participants - service after valuation date 21,948,855
Anticipated administrative expenses (beg. of year) 24,578,313

Total normal cost $ 46,527,168

Unfunded Actuarial Liability as of July 1, 2014

Actuarial liability
Participants currently receiving benefits $ 5,091,764,210
Inactive vested participants 435,975,219
Active participants - service prior to val. date 625,510,482
Active participants - service after val. date -
6,153,249,911

less: Fund assets (actuarial value) 4,362,514,000

Unfunded actuarial liability (not less than 0) $ 1,790,735,911

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July 1, 2014 Actuarial Valuation
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ACTUARIAL LIABILITY RECONCILIATION/PROJECTION

Reconciliation of Unfunded Actuarial Liability

Expected unfunded actuarial liability as of June 30, 2014
Unfunded actuarial liability as of July 1, 2013 $ 1,816,455,000
Normal cost 23,543,000
Actual contributions (105,527,000)
Interest to end of plan year 139,987,783
1,874,458,783

Increase (decrease) due to:
Experience (gain) or loss – assets (48,184,000)
Experience (gain) or loss – plan experience 36,760,832
Plan amendment -
Change in actuarial assumptions 143,059,696
Change in actuarial method (215,359,400)
Net increase (decrease) (83,722,872)

Unfunded actuarial liability as of July 1, 2014 $ 1,790,735,911

Projection of Actuarial Liability to Year End

Actuarial liability as of July 1, 2014 $ 6,153,249,911

Expected increase (decrease) due to:
Normal cost 46,527,168
Benefits paid (611,067,605)
Interest on above (21,335,084)
Interest on actuarial liability 461,493,743
Net expected increase (decrease) (124,381,778)

Expected actuarial liability as of June 30, 2015 $ 6,028,868,133

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July 1, 2014 Actuarial Valuation
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CURRENT LIABILITY

Current liability is developed for the purpose of determining the full funding limitation
under Section 431(c)(6) of the Internal Revenue Code and the maximum deductible
contribution under Section 404(a)(1)(D) of the Internal Revenue Code. As prescribed
under Section 431(c)(6), the current liability uses a different interest rate and mortality
table than regular plan funding under ERISA.

Current Liability as of July 1, 2014

Vested current liability
Participants currently receiving benefits $ 7,833,383,081
Inactive vested participants 535,381,398
Active participants 1,125,557,695
9,494,322,174

Nonvested current liability
Inactive vested participants 179,418,454
Active participants 60,937,860
240,356,314

Total current liability $ 9,734,678,488

Projection of Current Liability to Year End

Current liability as of July 1, 2014 $ 9,734,678,488

Expected increase (decrease) due to:
Benefits accruing 75,417,404
Benefits paid (611,067,605)
Interest on above (9,175,234)
Interest on current liability 349,474,958
Net expected increase (decrease) (195,350,477)

Expected current liability as of June 30, 2015 $ 9,539,328,011

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July 1, 2014 Actuarial Valuation
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FULL FUNDING LIMIT

The full funding limit, as required under Section 431(c)(6) and Section 404(a)(1) of the
Internal Revenue Code, provides a limitation to both the minimum required contribution
and the maximum deductible contribution. Both results are limited to be no greater than
the unfunded liability (plus the ERISA credit balance for the minimum required
contribution only). This limitation amount is overridden if 90% of the current liability
minus the actuarial value of assets is greater or, for the maximum deductible contribution
only, if 140% of the vested current liability minus the actuarial value of assets is greater.

Projection of Assets
for Full Funding Limit
Market
Value
Actuarial
Value

Asset value as of July 1, 2014 $ 4,164,994,000 $ 4,362,514,000

Expected increase (decrease) due to:
Benefits paid (611,067,605) (611,067,605)
Investment income 299,051,926 314,458,486
Net expected increase (decrease) (312,015,679) (296,609,119)

Expected value as of June 30, 2015* $ 3,852,978,321 $ 4,065,904,881

* Ignoring expected employer contributions (as required by regulation).

Full Funding Limit
as of June 30, 2015
For
Minimum
Required
For
Maximum
Deductible

ERISA full funding limit (not less than 0)
Actuarial liability $ 6,028,868,133 $ 6,028,868,133
less: Assets (lesser of market or actuarial) 3,852,978,321 3,852,978,321
plus: Credit balance (w/interest to year end) 1,552,906,467 n/a
3,728,796,279 2,175,889,812

Full funding limit override
(not less than 0)

90% of current liability 8,585,395,210 8,585,395,210
less: Assets (actuarial value) 4,065,904,881 4,065,904,881
4,519,490,329 4,519,490,329

Full funding limit (greater of ERISA limit
and full funding override) $ 4,519,490,329 $ 4,519,490,329

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July 1, 2014 Actuarial Valuation
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MINIMUM REQUIRED CONTRIBUTION AND FULL FUNDING CREDIT

Minimum Required Contribution
Plan Year Beginning July 1, 2014

Minimum funding cost
Total normal cost $ 46,527,168
Net amortization of unfunded liabilities 459,290,211
Interest to end of plan year 37,936,303
543,753,682

Full funding limit 4,519,490,329

Net charge to funding std. acct. (lesser of above) 543,753,682
less: Credit balance with interest to year end 1,552,906,467

Minimum Required Contribution (not less than 0) $ -

Full Funding Credit to Funding Standard
Account Plan Year Ending June 30, 2015

Full funding credit (not less than 0)
Minimum funding cost (n.c., amort., int.) $ 543,753,682
less: full funding limit 4,519,490,329

$ -

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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 July 1, 2014

Preliminary deductible limit
Total normal cost $ 46,527,168
10-year  limit  adjustment  (using  “fresh  start”  alternative) 242,683,741
Interest to end of plan year 21,690,819
310,901,728

Full funding limit 4,519,490,329

Maximum deductible contribution override
140% of vested current liability projected to June 30, 2015 13,025,313,060
less: Actuarial value of assets projected to June 30, 2015 4,065,904,881
8,959,408,179

Maximum deductible contribution* $ 8,959,408,179

Anticipated employer contributions $ 102,251,105

* Equals the lesser of the preliminary deductible limit and the full funding limit, but not less than the
maximum deductible contribution override.
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July 1, 2014 Actuarial Valuation
Page 32

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)(II). The
reorganization rules have been repealed by the Multiemployer Pension Reform Act of
2014 (MEPRA) starting with the plan year beginning in 2015.

Reorganization Index
Plan Year Ending June 30, 2014
Value of vested benefits in pay status as of June 30, 2014 $ 5,091,764,210
Value of all vested benefits as of June 30, 2014 5,986,269,571
Assets as of June 30, 2014* 4,164,994,000

Unfunded vested benefits (UVB) in pay status 926,770,210
Unfunded vested benefits not in pay status 894,505,361

Vested benefits charge
10 year amortization of UVB in pay status 125,597,561
25 year amortization of UVB not in pay status 74,648,071
200,245,632

Net charge to the FSA as of June 30, 2014
Total normal cost 23,543,000
Charges to the FSA 855,236,000
less: credits to the FSA 398,534,000
480,245,000

Vested benefits charge less net charge to FSA (279,999,368)

Reorganization index (preceding value, not less than zero) $ -

Plan in reorganization for plan year ending June 30, 2014? NO

* Market value

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July 1, 2014 Actuarial Valuation
Page 33

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 July 1,

2014

2013

Present value of vested accumulated benefits
Participants currently receiving benefits $ 7,002,094,897 $ 7,910,935,000
Other participants 1,484,022,604 1,901,050,000
8,486,117,501 9,811,985,000

Nonvested accumulated benefits 307,301,402 104,311,000

Present value of all accumulated benefits $ 8,793,418,903 $ 9,916,296,000

Market value of plan assets $ 4,164,994,000 $ 4,093,377,000

Interest rate used to value benefits
First 20 years 3.47% 2.50%
Thereafter 3.64% 3.20%

Changes in Present Value of Accumulated Benefits

Present value of accumulated benefits as of July 1, 2013 $ 9,916,296,000

Increase (decrease) due to:
Plan amendment -
Change in actuarial assumptions 143,059,696
Benefits accumulated and experience gain or loss (875,573,621)
Interest due to decrease in discount period 219,474,828
Benefits paid (609,838,000)
Net increase (decrease) (1,122,877,097)

Present value of accumulated benefits as of July 1, 2014 $ 8,793,418,903

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July 1, 2014 Actuarial Valuation
Page 34

BENEFIT PAYOUT PROJECTION

Estimated benefit payments for the next forty years, based upon the actuarial
assumptions used in the valuation and benefit levels scheduled to take effect during the
term of the collective bargaining agreement applicable to the plan (and reflecting
expected future accruals for actives), are shown. Future benefit payments will vary from
the projections as actual experience differs from the assumed experience for mortality,
turnover, retirement, etc.

Plan Year
Beginning
July 1,

Expected
Benefit Payments
Plan Year
Beginning
July 1,

Expected
Benefit Payments

2014 $590,760,222 2034 $319,513,783
2015 589,672,672 2035 300,699,060
2016 586,491,507 2036 281,931,226
2017 581,267,121 2037 263,107,207
2018 575,016,409 2038 244,513,793
2019 566,977,741 2039 226,180,734
2020 557,208,621 2040 208,428,966
2021 544,672,389 2041 191,104,893
2022 530,177,339 2042 174,433,000
2023 514,553,009 2043 158,539,898
2024 497,904,978 2044 143,520,455
2025 480,856,999 2045 129,241,599
2026 463,499,815 2046 116,017,285
2027 445,868,179 2047 103,794,529
2028 428,243,082 2048 92,563,937
2029 410,568,815 2049 82,412,767
2030 392,918,670 2050 73,191,042
2031 375,025,005 2051 64,942,710
2032 356,742,586 2052 57,526,072
2033 338,242,230 2053 50,934,361

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APPENDICES

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Appendix A - Plan Provisions
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page A-1

PLAN HISTORY

Origins/Purpose
The United Mine Workers of America 1974 Pension Plan was established by the UMWA
and  the  Bituminous  Coal  Operators’  Association,  Inc.  (BCOA)  during  the  negotiation  of  
the National Bituminous Coal Wage Agreement of 1974. It became effective December
6, 1974 and is the continuation of the benefit program established under the UMWA
Welfare and Retirement Fund of 1950. Effective June 30, 2007, it is also the surviving
plan following the merger with the United Mine Workers of America 1950 Pension Plan.

The Pension Plan is managed under the provisions of Article XX of the National
Bituminous Coal Wage Agreement of 2011, as amended from time to time, by a Board of
Trustees consisting of two representatives from the Union and two representatives from
the Employers.

The purpose of the Pension Plan is to provide Normal and Early Retirement Benefits,
Surviving Spouse Benefits, Disability Benefits, Deferred Vested Benefits, Widow
Benefits, and Death Benefits.

Employer Contributions
The Pension Plan is financed entirely by contributions from the employers as specified in
the Collective Bargaining Agreement. Following is a partial listing of hourly pension
contribution rates.

Date
Hourly Contribution
Rate

1/1/2007 $2.00
1/1/2008 $3.50
1/1/2009 $4.25
1/1/2010 $5.00
1/1/2011 $5.50

The employers must also pay a contribution based on tons  of  “purchased  coal”.    The  
current  rate  is  $1.10  per  ton  of  “purchased  coal”.

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Appendix A - Plan Provisions
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July 1, 2014 Actuarial Valuation
Page A-2

PLAN HISTORY (CONT.)

Normal Retirement Benefit and Disability Benefit 1974 Pension Plan
Following are the monthly historical normal retirement benefit amounts earned for each
year of service for retirements or terminations prior to February 1, 1988:

Retirement or
Termination During:
Credited
Non-
Signatory
Service
Credited Signatory Service
1st 10
Years
2nd 10
Years
3rd 10
Years
In Excess
of 30 Years

1/1/1976 to 12/31/1976 $7.50 $12.00 $12.50 $13.00 $13.50
1/1/1977 to 3/26/1978 $7.50 $12.50 $13.00 $13.50 $14.00
3/27/1978 to 6/6/1981 $7.50 $13.50 $14.00 $14.50 $15.00
6/7/1981 to 6/6/1983 $7.50 $14.50 $15.00 $15.50 $16.00
6/7/1983 to 9/30/1984 $7.50 $15.50 $16.00 $16.50 $17.00
10/1/1984 to 9/30/1987 $7.50 $16.50 $17.00 $17.50 $18.00
10/1/1987 to 1/31/1988 $7.50 $17.00 $17.50 $18.00 $18.50

Following are the monthly historical normal retirement benefit amounts earned for each
year of service for retirements or terminations on or after February 1, 1988 (the sum of
(a) plus (b) plus (c) plus (d) plus (e)):

Retirement or
Termination During:
Credited
Non-
Signatory
Service
(a)
Credited Signatory Service
(earned prior to 2/1/1989)
(b)
1st 10
Years
2nd 10
Years
3rd 10
Years
In Excess
of 30 Years

2/1/1988 to 1/31/1991 $7.50 $20.00 $20.50 $21.00 $21.50
2/1/1991 to 12/15/1993 $10.00 $22.50 $23.00 $23.50 $24.00
12/16/1993 to 8/16/1996* $10.00 $26.50 $27.00 $27.50 $28.00
8/17/1996 to 12/31/1997* $12.00 $28.50 $29.00 $29.50 $30.00
1/1/1998 to 12/31/1999 $12.00 $32.50 $33.00 $33.50 $34.00
1/1/2000 to 12/31/2001 $14.00 $34.50 $35.00 $35.50 $36.00
1/1/2002 to 12/31/2003 $18.00 $38.50 $39.00 $39.50 $40.00
1/1/2004 to 12/31/2005 $20.00 $40.50 $41.00 $41.50 $42.00
1/1/2006 to 12/31/2006 $24.00 $44.50 $45.00 $45.50 $46.00
1/1/2007 to 12/31/2008 $28.00 $48.50 $49.00 $49.50 $50.00
1/1/2009 to 12/31/2010 $32.00 $52.50 $53.00 $53.50 $54.00
On or after 1/1/2011 $34.00 $54.50 $55.00 $55.50 $56.00
* Pension application authorized.
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July 1, 2014 Actuarial Valuation
Page A-3

PLAN HISTORY (CONT.)

Retirement or
Termination During:
Credited Signatory
Service (earned
from 2/1/1989
through 1/31/1990)
(c)
Credited Signatory
Service (earned
from 2/1/1990
through 12/15/1993)
(d)
Credited
Signatory Service
(earned on or after
12/16/1993)
(e)

2/1/1988 to 1/31/1991 $27.50 $32.00 N/A
2/1/1991 to 12/15/1993 $30.00 $34.50 N/A
12/16/1993 to 8/16/1996* $34.00 $38.50 $41.50
8/17/1996 to 12/31/1997* $36.00 $40.50 $43.50
1/1/1998 to 12/31/1999 $40.00 $44.50 $47.50
1/1/2000 to 12/31/2001 $42.00 $46.50 $49.50
1/1/2002 to 12/31/2003 $46.00 $50.50 $53.50
1/1/2004 to 12/31/2005 $48.00 $52.50 $55.50
1/1/2006 to 12/31/2006 $52.00 $56.50 $59.50
1/1/2007 to 12/31/2008 $56.00 $60.50 $63.50
1/1/2009 to 12/31/2010 $60.00 $64.50 $67.50
On or after 1/1/2011 $62.00 $66.50 $69.50
* Pension application authorized

Minimum Disability Benefit 1974 Pension Plan
Following are the monthly historical minimum disability retirement benefit amounts,
based on date of retirement:

Retirement Date Benefit Amount

Prior to 3/27/1978 $125.00
3/27/1978 to 6/6/1981 $135.00
6/7/1981 to 6/6/1983 $145.00
6/7/1983 to 9/30/1984 $155.00
10/1/1984 to 9/30/1987 $165.00
10/1/1987 to 1/31/1988 $170.00
2/1/1988 to 1/31/1990 $190.00
2/1/1990 to 12/31/1997 $200.00
1/1/1998 to 12/31/2001 $215.00
1/1/2002 to 12/31/2006 $230.00
1/1/2007 to 12/31/2008 $245.00
On or after 1/1/2009 $250.00

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Appendix A - Plan Provisions
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July 1, 2014 Actuarial Valuation
Page A-4

PLAN HISTORY (CONT.)

Pension Benefit Increases 1974 Pension Plan
Following are the monthly benefit increases applied to prior retirements:

A. Pension increases for participants who retired prior to 2/1/1988, excluding those
with a Minimum Disability Retirement pension or those with a Deferred Vested
Retirement pension prior to 2/1/1988:

Effective Date of Increase Increase Applicable to
Retirements Prior to
Amount of Monthly
Pension Increase

1/1/1977 12/31/1976 $10.00
4/1/1978 3/27/1978 $10.00
4/1/1979 3/27/1978 $10.00
4/1/1980 3/27/1978 $5.00
7/1/1981 6/7/1981 $10.00
7/1/1982 6/7/1981 $10.00
7/1/1983 6/7/1981 $5.00
10/1/1984 10/1/1984 $10.00
10/1/1987 10/1/1984 $10.00
2/1/1988 2/1/1988 $20.00
2/1/1990 2/1/1988 $10.00

B. Pension increases for participants with a Minimum Disability Retirement pension
who retired prior to 2/1/1988:

Effective Date of Increase Increase Applicable to
Retirements Prior to
Amount of Monthly
Pension Increase

4/1/1978 3/27/1978 $5.00
4/1/1979 3/27/1978 $5.00
4/1/1980 3/27/1978 $2.50
7/1/1981 6/7/1981 $5.00
7/1/1982 6/7/1981 $5.00
7/1/1983 6/7/1981 $2.50

Effective Date of Increase Increase Applicable to
Retirements Prior to
Amount of Monthly
Pension

10/1/1984 10/1/1984 $160.00
10/1/1987 10/1/1984 170.00 *
2/1/1988 2/1/1988 190.00
2/1/1990 2/1/1988 200.00
1/1/1998 1/1/1998 215.00
1/1/2002 1/1/2002 230.00
1/1/2007 1/1/2007 245.00
1/1/2009 1/1/2009 250.00
* $165 if approved after October 1, 1984.
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July 1, 2014 Actuarial Valuation
Page A-5

PLAN HISTORY (CONT.)

C. Pension increases for surviving spouses of pensioners (other than deferred
vested pensioners not eligible for the Deferred Vested Retirement – Special
benefit for increases prior to February 1, 1988) who died prior to February 1,
1988:

Effective Date of
Increase
Increase Applicable to
Retirements Prior to
Amount of Monthly Pension
Increase

10/1/1984 10/1/1984 $5.00
10/1/1987 10/1/1984 $5.00
2/1/1988 2/1/1988 (1/31/1988 amount + $10.00) x 1.5
2/1/1990 2/1/1988 (1/31/1988 amount + $15.00) x 1.5

D. Pensions of participants eligible for a Deferred Vested Retirement – Regular
pension who ceased work prior to June 7, 1981, and satisfy the criteria for a
Deferred Vested Retirement – Special pension are recomputed (prospectively
only) using the ¼% reduction and the Normal Retirement benefit schedule in
effect on the last day of credited service. Pension of such participants are
increased by any increases applicable to Early Retirement pensioners which
occurred after the date of retirement and application for pension.

E. A monthly benefit increase of $15.00 is provided to all pensioners and surviving
spouses in pay status, and to all terminated vested participants (not yet in pay
status), on January 1, 1998.

F. A monthly benefit increase of $15.00 is provided to all pensioners and surviving
spouses in pay status, and to all terminated vested participants (not yet in pay
status), on January 1, 2002.

G. A monthly benefit increase of $15.00 is provided to all pensioners and surviving
spouses in pay status, and to all terminated vested participants (not yet in pay
status), on January 1, 2007.

H. A monthly benefit increase of $5.00 is provided to all pensioners and surviving
spouses in pay status, and to all terminated vested participants (not yet in pay
status), on January 1, 2009.
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Appendix A - Plan Provisions
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page A-6

PLAN HISTORY (CONT.)

Normal and 1950 Partial Benefits: 1950 Pension Plan
Following are the monthly historical normal retirement benefit amounts paid:
A. For pensioners with at least 20 years of credited service:

Period Beginning:
Monthly Benefit
Without Black Lung
Benefit With Black Lung Benefit

1/1/1975 $200.00 $200.00
1/1/1976 $225.00 $215.00
1/1/1977 $250.00 $225.00
4/1/1978 $275.00 $275.00
7/1/1981 $290.00 $290.00
7/1/1982 $305.00 $305.00
7/1/1983 $315.00 $315.00
10/1/1984 $325.00 $325.00
10/1/1987 $335.00 $335.00
2/1/1988 $365.00 $365.00
2/1/1990 $375.00 $375.00
1/1/1998 $390.00 $390.00
1/1/2002 $405.00 $405.00
1/1/2007 $420.00 $420.00
1/1/2009 $425.00 $425.00

B. For 1950 Partial pensioners with less than 20 years of credited service and
terminated vested (need 10 years of signatory service, 3 years of which are after
12/31/1970):

Period
Beginning:
Monthly Benefit Amount to be Multiplied by the Ratio of
Years of Credited Signatory Service to 20 Years
Without Black Lung Benefit With Black Lung Benefit

1/1/1975 $200.00 $200.00
1/1/1976 $225.00 $215.00
1/1/1977 $250.00 $225.00
7/1/1981 $250.00 $250.00

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Appendix A - Plan Provisions
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July 1, 2014 Actuarial Valuation
Page A-7

PLAN HISTORY (CONT.)

Pension Benefit Increases 1950 Pension Plan
The amounts determined in B. above were increased according to the following
schedule:

Effective Date
of Increase
Amount of Monthly
Pension Increase

2/1/1988 $30.00
2/1/1990 $10.00
1/1/1998 $15.00
1/1/2002 $15.00
1/1/2007 $15.00
1/1/2009 $5.00

Disability Benefit 1950 Pension Plan
Following are the monthly historical Disability Retirement benefit amounts:

Period Beginning Monthly Benefit

1/1/1975 $125.00
4/1/1978 $130.00
4/1/1979 $135.00
4/1/1980 $137.50
7/1/1981 $147.50
7/1/1982 $152.50
7/1/1983 $157.50
10/1/1984 $167.50
10/1/1987 $177.50
2/1/1988 $207.50
2/1/1990 $217.50
1/1/1998 $232.50
1/1/2002 $247.50
1/1/2007 $262.50
1/1/2009 $267.50

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July 1, 2014 Actuarial Valuation
Page A-8

PLAN HISTORY (CONT.)

Widow’s  Benefit  1950  Pension  Plan
Following are the monthly historical Widow’s benefit amounts:

Period Beginning Monthly Benefit

3/1/1982 $95.00
10/1/1984 $100.00
10/1/1987 $105.00
2/1/1988 $120.00
2/1/1990 $125.00
1/1/1998 $140.00
1/1/2002 $155.00
1/1/2007 $170.00
1/1/2009 $175.00

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July 1, 2014 Actuarial Valuation
Page A-9

SUMMARY OF PLAN PROVISIONS 1974 PENSION PLAN

Participation Completion of at least 1,000 hours of credited service (or
800 hours of credited service for weekend/holiday crew of
a signatory Employer) within a 12-month period after the
effective date.

Class of Employee
Covered

All eligible persons retiring on or after December 31,
1975, or becoming totally disabled due to a mine accident
on or after December 6, 1974. New Inexperienced
Miners first hired on or after January 1, 2012 (NIMs) will
not earn any vesting, signatory, or credited service. Also,
miners who are active participants may opt out of the plan
on or after January 1, 2012 (Electing Miners). After the
opt-out date, Electing Miners will earn service credit for
vesting  and  “any  early  retirement  adjustments  based  on  
the  type  of  pension  benefit,”  but  not  signatory  or  credited  
service. NIMs and Electing Miners will be eligible for
disability benefits and, if they meet the eligibility
requirements, lump sum death benefits.

Year of credited service For non weekend and holiday employees (non-signatory
and signatory service):

Hours Worked Service
249 or less 0.00
250-499 0.25
500-749 0.50
750-999 0.75
1,000 + 1.00

For weekend and holiday employees (signatory service):

Hours Worked Service
200 or less 0.00
200-399 0.25
400-599 0.50
600-799 0.75
800 + 1.00
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July 1, 2014 Actuarial Valuation
Page A-10

SUMMARY OF PLAN PROVISIONS 1974 PENSION PLAN (CONT.)

Normal retirement benefit
Eligibility Earlier of (1) later of age 65 or the 5th anniversary
employed in signatory service, (2) age 62 and 10 years
of signatory service, or (3) age 62 and at least 20 years of
credited service including the required signatory service

Monthly amount $34.00 per year of credited non-signatory service, plus
$54.50 per year for the 1st 10 years of credited signatory
service earned prior to February 1, 1989, plus $55.00 per
year for the 2nd 10 years of credited signatory service
earned prior to February 1, 1989, plus $55.50 per year for
the 3rd 10 years of credited signatory service earned prior
to February 1, 1989, plus $56.00 per year for any further
years of credited signatory service earned prior to
February 1, 1989, plus $62.00 per year of credited
signatory service earned from February 1, 1989 through
January 31, 1990, plus $66.50 per year of credited
signatory service earned from February 1, 1990 through
December 15, 1993, plus $69.50 per year of credited
signatory service earned on or after December 16, 1993.
Payable for life if not married. If married, benefits are
payable for life, without reduction, with 75% of the benefit
continuing to an eligible spouse after   the   participant’s  
death.

Age 55 retirement benefit
Eligibility Age 55 and 10 years of signatory service or 20 years of
credited service including the required amount of
signatory service

Monthly amount Normal reduced by 1/4% for each month prior to age 62.
Form of payment same as for Normal Retirement.

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July 1, 2014 Actuarial Valuation
Page A-11

SUMMARY OF PLAN PROVISIONS 1974 PENSION PLAN (CONT.)

Disability benefit
Eligibility 1974 Participants, NIMs and Electing Miners who have at
least 10 years of service. Service is credited service plus,
for NIMs and Electing Miners, years of Supplemental
Pension Contributions.

Monthly amount Same as normal retirement benefit.

Minimum disability benefit
Eligibility 1974 Participants, NIMs and Electing Miners who have
less than 10 years of service. Service is credited service
plus, for NIMs and Electing Miners, years of
Supplemental Pension Contributions.

Monthly amount $250 per month.

Deferred vested benefit -
normal

Eligibility Termination of employee prior to age 55 plus either 5
years of signatory service or 20 years of credited service.

Monthly amount Normal payable at age 62, or actuarially reduced payable
at early. With 20 years of credited service, there is a
minimum monthly benefit of $200. If unmarried, the
benefit is payable for the participant’s  lifetime.    If  married  
with at least 20 years of credited service, benefits are
payable for life, without reduction, with 75% of the benefit
continuing to an eligible spouse after the participant’s  
death. If married with less than 20 years of credited
service, a 50% joint and survivor benefit actuarially
equivalent to a life annuity is payable.
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July 1, 2014 Actuarial Valuation
Page A-12

SUMMARY OF PLAN PROVISIONS 1974 PENSION PLAN (CONT.)

Deferred vested benefit –
enhanced 1996

Eligibility 20 years of signatory service, termination of employment
prior to attaining age 55, benefits were not in pay status
on or before August 16, 1996, and either had not refused
recall to the mine from which he or she was laid off or had
been terminated under Article III, Section (j) of the Wage
Agreement (or physically unable to perform work) and
was not employed in the coal industry thereafter.

Monthly amount Amount and form of payment same as Age 55 retirement
benefit.

Deferred vested benefit –
special permanent layoff

Eligibility 20 years of signatory service, termination of employment
prior to attaining age 55, and participant was permanently
laid off.

Monthly amount Normal payable as if age 55 (with 21% reduction) payable
at any age under 55. If unmarried, benefit is payable
during   participant’s   lifetime.     If   married,   benefits   are  
payable   during   participant’s   lifetime  (early retirement
reduction only) with 75% of the participant’s benefit
continuing to an eligible spouse after   the   participant’s  
death.

30 and out benefit
Eligibility 30 years of credited service and termination is on or after
January 1, 2003.

Monthly amount Amount and form of payment same as Normal retirement
benefit.

Pre-retirement surviving
spouse benefit

Eligibility Death of participant eligible for an immediate pension at
time of death, except Deferred Vested participants with
less than 20 years of credited service

Monthly amount 75% of the pension that the participant would have
received had he elected a pension on the day preceding
his death. Payable for life of eligible spouse.
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July 1, 2014 Actuarial Valuation
Page A-13

SUMMARY OF PLAN PROVISIONS 1974 PENSION PLAN (CONT.)

Pre-retirement joint and
survivor annuity

Eligibility Not eligible for a pre-retirement surviving spouse benefit,
but qualifies for a pension under the plan or has 5 years
of signatory service

Monthly amount 75% of the pension that the participant would have
received had he separated from service on the day of his
actual death, and survived to retire at age 55 (or current
age at death, if later) and died on the next day. Payable
for life of eligible spouse, starting at the later of the first of
the month following the date of death or the first of the
month following the date the participant would have
attained age 55.

Lump sum death benefit
Eligibility Death of a regular or disabled pensioner (excluding
anyone receiving a deferred vested pension based on
less than 20 years of credited service or anyone who is
an eligible beneficiary of the UMWA Combined Benefit
Fund), an eligible inactive NIM, or an eligible inactive
Electing Miner. Last service must have been with an
employer signatory to an agreement.

Lump sum amount $10,000 for the named beneficiary who is the surviving
spouse or an eligible dependent, and $8,500 for any other
named beneficiary.

Special surviving spouse
benefit

Eligibility January 1, 1998, surviving spouse who 1) was married to
a miner who died as a result of a mine accident during the
term of the 1978 or 1981 Wage Agreement (with 10 years
of credited service) and who was not in Construction
Industry Service at time of death, 2) never remarried, and
3) never received a monthly surviving spouse benefit.

Benefit Lump sum of $10,000 on February 1, 1998, plus monthly
benefit of $100 beginning February 1, 1998, and
continuing until remarriage or death.
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July 1, 2014 Actuarial Valuation
Page A-14

SUMMARY OF PLAN PROVISIONS FORMER 1950 PENSION PLAN

Participation Persons who terminated classified work prior to
December 31, 1975 or became disabled between May 29,
1946 and December 6, 1974 as a result of a mine
accident.

Normal retirement benefit
Eligibility Age 55 with 20 years of credited service including the
required signatory service

Monthly amount $425 payable for life

Disability benefit
Eligibility Disabled as the result of a mine accident which occurred
after May 29, 1946 while in a classified job and eligible for
Social Security disability benefits as a result of such
accident.

Monthly amount $267.50 payable for life

1950 partial pension
Eligibility 10 years of signatory service including at least 3 years
after December 31, 1970

Monthly amount $250 multiplied by ratio of years of credited signatory
service (to the nearest ¼ year) to 20 years. Payable for
life.

Widow’s  benefit
Eligibility Widow of pensioner receiving benefits under this plan at
time of death, who was married to the pensioner
throughout nine-month period ending on date of
pensioner’s  death.

Monthly amount $175 payable for life, except payment ceases upon
remarriage
(Note: In limited circumstances, surviving spouses may
be entitled to other survivor benefits in lieu of the above.
See next section.)

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July 1, 2014 Actuarial Valuation
Page A-15

SUMMARY OF PLAN PROVISIONS 1950 PENSION PLAN (CONT.)

Pre-retirement surviving
spouse benefit

Eligibility One hour of service under the 1950 Pension Plan on or
after September 2, 1974 and dies on or after July 1, 2011,
but prior to receiving his pension.

Monthly amount 50% of the pension that the participant would have
received had he elected a pension on the day preceding
his death. Payable for life of eligible spouse.

Joint and survivor benefit
Eligibility One hour of service under the 1950 Pension Plan on or
after September 2, 1974 and begins receiving his pension
on or after July 1, 2011.

Monthly amount In   lieu   of   the   Widow’s   Benefit,   an   actuarially   reduced  
benefit of which 50% is payable to the eligible spouse.

Lump sum death benefit
Eligibility Death of a regular or disabled pensioner on or after
February 1, 1991, excluding anyone receiving a deferred
vested pension based on less than 20 years of credited
service and anyone who is an eligible beneficiary of the
UMWA Combined Benefit Fund. Regular pensioners with
less than 20 years of credited service who used non-
classified service for vesting purposes are not eligible for
lump sum death benefits.

Lump sum amount $10,000 for the named beneficiary who is the surviving
spouse or an eligible dependent, and $8,500 for any other
named beneficiary.
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Appendix A - Plan Provisions
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page A-16

HISTORICAL PLAN MODIFICATIONS

Deferred vested benefit –
special

Provisions This benefit was removed for participants who retire
under the 2007 or later Agreements because the benefit
had become redundant.

Special 30-and-out layoff
pension

Provisions This benefit was removed for participants who retire
under the 2007 or later Agreements because the benefit
had become redundant.

Social security
supplement

Provisions This benefit was deleted for participants who retire under
the 2007 or later Agreements because the benefit had
expired by its own terms.

Electing Miners
Provisions Miners who are active participants may opt out of the plan
on or after January 1, 2012. After the opt-out date,
Electing Miners will earn service credit for vesting and any
early retirement adjustments based on the type of
pension benefit, but not signatory or credited service.
Electing Miners will be eligible for normal and minimum
disability benefits and, if they meet the eligibility
requirements, lump sum death benefits.

New Inexperienced Miners
Provisions New Inexperienced Miners first hired on or after January
1, 2012 will not earn any vesting, signatory, or credited
service. New Inexperienced Miners will be eligible for
normal and minimum disability benefits and, if they meet
the eligibility requirements, lump sum death benefits.

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Appendix B - Actuarial Assumptions and Methods
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page B-1

ACTUARIAL ASSUMPTIONS

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

Valuation date July 1, 2014

Interest rates
ERISA rate of return
used to value liabilities
7.8% per year gross of investment expenses and 7.5%
per year net of investment expenses

Unfunded vested
benefits and ASC 960
accounting
3.47% for 20 years, then 3.64% thereafter

Current liability 3.59% (in accordance with Section 431(c)(6) of the
Internal Revenue Code)

Administrative expenses $25,500,000 per year excluding investment expenses

Loading for non-reported
vested terminated
participants (1950 Plan)
Terminated vested liabilities increased by 0.6%

Mortality
Assumed plan mortality-
pre-retirement
RP-2000 Mortality Table for Blue Collar Male Employees,
set forward 2 years and assumed to improve by .75% per
year for 15 years (beginning July 1, 2013) at each age
between 55 and 99 - specimen rates shown below for a
participant born in 1970:

Age Mortality Rate:
25 .0006
.0012
.0020
.0037
.0078

35
45
55
65
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July 1, 2014 Actuarial Valuation
Page B-2

ACTUARIAL ASSUMPTIONS (CONT.)

Assumed plan mortality-
post-retirement
RP-2000 Mortality Table for Blue Collar Healthy Male
Annuitants, set forward 1 year and assumed to improve
by .75% per year for 20 years (beginning July 1, 2008) at
each age between 55 and 99 - specimen rates shown
below for a participant born in 1970:

Age Mortality Rate:
55 .0067
65 .0157
75 .0410
85 .1087
95 .2442

Assumed plan mortality-
post-disablement
RP-2000 Mortality Table for Blue Collar Healthy Male
Annuitants, set forward 4 years and assumed to improve
by .75% per year for 15 years (beginning July 1, 2013) at
each age between 55 and 99 - specimen rates shown
below for a participant born in 1970:

Age Mortality Rate:
25 .0007
.0013
.0023
.0088
.0218
.0572
.1485
.2949

35
45
55
65
75
85
95

Assumed plan mortality-
spouse/widow
Unisex Pension 1984 Mortality Table, set back 3 years
and assumed to improve by .75% per year for 15 years
(beginning July 1, 2013) at each age between 55 and 99 -
specimen rates shown below for a spouse born in 1970:

Age Mortality Rate:
25 .0012
.0012
.0026
.0061
.0152
.0365
.0859
.1921

35
45
55
65
75
85
95
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July 1, 2014 Actuarial Valuation
Page B-3

ACTUARIAL ASSUMPTIONS (CONT.)

Current liability Separate annuitant and non-annuitant rates based on the
RP-2000 Mortality Tables Report developed for males
and females as prescribed by Section 431(c)(6) of the
Internal Revenue Code.
Withdrawal 125% of the Vaughn Table ultimate rates plus 4%

Withdrawal
Age Rate
20 .273
30 .166
40 .121
50 .096
55 .000
Participants terminating before age 55 with at least 20
years of signatory service are assumed to be permanently
laid off.
Disability 1.5% per year for ages 20 through 64
Retirement
Active lives According to the following schedule:
___Active Participants___

Age
Service <30
Years
Service  ≥30
Years
Vested
Terminations
50-53 .00 .13 .00
54 .00 .20 .00
55 .10 .38 .45
56 .07 .34 .19
57 .07 .30 .12
58 .08 .30 .09
59 .09 .30 .06
60 .10 .30 .06
61 .14 .35 .06
62 .40 .70 1.00
63 .30 .45 1.00
64 .60 .30 1.00
65 1.00 1.00 1.00
Resulting in an average expected retirement age of
60.9.
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United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page B-4

ACTUARIAL ASSUMPTIONS (CONT.)

Future service
Participant Category Future Service
Active participants who earned a full
year of service every calendar year
since entry, during the period starting
in 1997
1.00 year

All other active participants 0.75 year

Active Electing Miner and NIMs will earn one Year of
Supplemental Pension Contributions for each future
calendar year until they enter terminated or retired status.

Entry Age Participants with credible past service data: Actual entry
age. Category includes participants whose first service
credit occurred in 1979 or later at age 45 or younger.

Participants without complete past service data: Assumed
to enter at age 24 or present age, if younger.

Past service Participants with credible past service data: Actual service
earned to end of calendar year preceding valuation date
plus ½ of the assumed future service for the six-month
period ending on the valuation date.

Participants without complete past service data: The sum
of (a) plus (b) plus (c).
(a) ½ of the assumed future service for the six-month
period ending on the valuation date.
(b) Actual signatory service credits for calendar years
1977 and later.
(c) For periods of assumed service prior to 1977,
according to the following chart:

Participant
Category
Service
Active participants who earned a full year
of service every calendar year since entry,
during the period starting in 1977
1.00 year

All other active and terminated participants 0.85 year

Past service is not imputed for New Inexperienced Miners
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July 1, 2014 Actuarial Valuation
Page B-5

ACTUARIAL ASSUMPTIONS (CONT.)

Rehire Retired, disabled and terminated participants are
assumed to be permanently retired or terminated and not
assumed to be rehired.

Future hours worked Total plan hours worked the prior plan year, decreasing
3% each year

Attained age All participants are assumed to be at least 18 years old.
All active participants are assumed to be less than 80
years old. Adjustments were made to the data if
participants were reported outside those ranges. (If an
active participant is reported younger than 18 years old
they are adjusted so that their entry age was 18.)

Age of participants with
unrecorded birth dates
Based on average age of the other participants in the
same status category

Gender All participants, other than surviving spouses, are
assumed to be male

Marriage 75% assumed married with the male spouse 3 years
older than his wife

Inactive vested lives over
age 63
Continuing inactive vested participants over age 63 are
assumed deceased and are not valued.

Section 415 limit
assumptions

Dollar limit $210,000 per year

Assumed form of
payment for those limited
by Section 415
Qualified joint and 50% survivor annuity

Benefits not valued Pre-retirement death benefits following withdrawal and
disability for active participants.

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July 1, 2014 Actuarial Valuation
Page B-6

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
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  2014  survey  of  investment  consultants.

Based on this analysis, we selected a final assumed rate
of 7.50%, which we feel is reasonable. This rate may not
be appropriate for other purposes such as settlement of
liabilities.

Mortality

Actual mortality rates were last studied for this plan by the
prior actuary, using experience from July 1, 2010 through
June 30, 2013 for pre-retirement mortality rates and from
July 1, 2008 through June 30, 2013 for postretirement,
disabled, spouse, and widow mortality rates. The
assumed future mortality rates were selected based on
the results of this study. Recent plan experience
suggests that these retirement rates are reasonable. We
will perform a new study once we have a sufficient
amount of historical data.

Retirement Actual rates of retirement by age were last studied for this
plan by the prior actuary, using experience from July 1,
2006 through June 30, 2010 for actives and from July 1,
2005 through June 30, 2010 for vested terminations. The
assumed future rates of retirement were selected based
on the results of this study. Recent plan experience
suggests that these retirement rates are reasonable. We
will perform a new study once we have a sufficient
amount of historical data.

Disability Actual disability rates by age were last studied for this
plan by the prior actuary, using experience from July 1,
2004 through June 30, 2010. The assumed future
disability rates were selected based on the results of this
study. Recent plan experience suggests that these
disability rates are reasonable. We will perform a new
study once we have a sufficient amount of historical data.

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Appendix B - Actuarial Assumptions and Methods
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page B-7

RATIONALE FOR SELECTION OF ACTUARIAL ASSUMPTIONS (CONT.)

Withdrawal Actual rates of withdrawal by age were last studied for
this plan by the prior actuary, using experience from July
1, 2005 through June 30, 2010. The assumed future
rates of withdrawal were selected based on the results of
this study. Recent plan experience suggests that these
withdrawal rates are reasonable. We will perform a new
study once we have a sufficient amount of historical data.

Future hours worked Based on review of recent plan experience adjusted for
anticipated future changes in workforce.
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Appendix B - Actuarial Assumptions and Methods
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page B-8

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 7.50% (net 0.3% investment expense)

Future total hours worked
Current year projections

18,491,110 for the plan year ending 2015 with
3% per year reduction thereafter

Future normal cost
Current year projections 10% reduction per year

The 10% reduction is more than the annual hours decline
due to the anticipated shift of the active population to
NIMs with very limited benefit accrual.

Contribution Rate
Increases

Current year projections None

Plan Changes
Current year projections None
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Appendix B - Actuarial Assumptions and Methods
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page B-9

ACTUARIAL METHODS

Funding method
ERISA funding Traditional unit credit cost method, effective July 1, 2009.

Population valued
Actives Eligible employees with a full or partial year of credited
service during the preceding calendar year.

Inactive vested Vested participants with no hours worked during the
preceding plan year.

Retirees Participants and beneficiaries in pay status as of the
valuation date.

Operational expense The   Plan’s   future   anticipated  operational expenses are
valued with a flat dollar load added to normal cost.

Asset valuation method
Actuarial value Smoothed market value with phase-in effective July 1,
2007.    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.

Unfunded vested
benefits
For the rolling 5 method, market value is used

Pension Relief Act of 2010 10-year smoothing was elected with respect to the
loss incurred during the plan year ended in 2009.

The 130% cap on actuarial value of assets was
elected for the plan year beginning in 2010.
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Date
Established
Source of Change in
Unfunded Liability
Original
Amount
Original
Period Years Months
Outstanding
Balance
Amortization
Payment
Remaining Period 7/1/2014 7/1/2014
Appendix C - Minimum Funding Amortization Bases
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Charges
7/1/1976 Intl Unfnd Frz AAL 40 2 0 293,302,240 151,951,7632,096,144,000
7/1/1977 Benefit Increases 40 3 0 8,633,702 3,088,35742,396,000
7/1/1978 Benefit Increases 40 4 0 43,241,814 12,009,861164,492,000
7/1/1979 Benefit Increases 40 5 0 2,381,302 547,5117,492,000
7/1/1980 Benefit Increases 40 6 0 1,209,516 239,7033,262,000
7/1/1985 Benefit Increases 30 1 0 11,897,886 11,897,886149,836,000
7/1/1987 Benefit Increases 30 3 0 11,233,838 4,018,45050,461,000
7/1/1988 Benefit Increases 30 4 0 220,458,546 61,229,543767,523,000
7/1/1989 Assumption Changes 30 5 0 31,873,226 7,328,31391,845,000
7/1/1989 Benefit Increases 30 5 0 58,264,822 13,396,287167,986,000
7/1/1990 Benefit Increases 30 6 0 35,198,856 6,975,75587,508,000
7/1/1991 1950 Assumption Ch 30 7 0 7,617,148 1,337,78618,060,000
7/1/1991 1950 Benefit Incrs 30 7 0 54,688,018 9,604,758129,588,000
7/1/1991 Benefit Increases 30 7 0 129,524,934 22,748,231285,295,000
7/1/1992 1950 Assumption Ch 30 8 0 50,446,088 8,011,638108,079,000
7/1/1993 1950 Asset Transfer 30 9 0 107,084,208 15,616,081210,000,000
7/1/1993 1950 Assumption Ch 30 9 0 44,991,408 6,561,09388,237,000
7/1/1994 1950 Benefit Change 30 10 0 43,969,464 5,958,82179,702,000
7/1/1994 Benefit Increases 30 10 0 187,701,360 25,437,625319,252,000
7/1/1995 1950 Assumption Ch 30 11 0 35,441,406 4,506,74560,136,000
7/1/1995 Assumption Changes 30 11 0 120,507,464 15,323,782192,373,000
7/1/1997 1950 Benefit Change 30 13 0 114,663,626 13,126,500173,833,000
7/1/1997 Benefit Increases 30 13 0 108,026,380 12,366,679155,332,000
7/1/1998 1950 Assumption Ch 30 14 0 24,756,270 2,712,76635,806,000
7/1/1998 Assumption Changes 30 14 0 86,009,308 9,424,810118,380,000
7/1/1998 Benefit Increases 30 14 0 407,364,342 44,638,557560,740,000
7/1/1999 Assumption Changes 30 15 0 3,471,160 365,8034,591,000
7/1/1999 Benefit Increases 30 15 0 35,426,314 3,733,34846,904,000
7/1/2000 1950 Actuarial Loss 15 1 0 487,256 487,2564,801,000
7/1/2000 Benefit Increases 30 16 0 33,645,458 3,423,73543,056,000
7/1/2002 1950 Assumption Ch 30 18 0 11,002,068 1,054,44813,728,000
7/1/2002 1950 Benefit Change 30 18 0 17,808,560 1,706,78822,225,000
7/1/2002 Bnft Incr/Asmp Chg 30 18 0 430,849,650 41,293,014520,163,000
7/1/2003 1950 Assumption Ch 30 19 0 38,875,914 3,631,22447,090,000
7/1/2003 Bnft Incr/Asmp Chg 30 19 0 50,010,576 4,671,26258,888,000
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Date
Established
Source of Change in
Unfunded Liability
Original
Amount
Original
Period Years Months
Outstanding
Balance
Amortization
Payment
Remaining Period 7/1/2014 7/1/2014
Appendix C - Minimum Funding Amortization Bases
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
7/1/2004 1950 Actuarial Loss 15 5 0 11,303,908 2,599,00225,131,000
7/1/2004 Benefit Increases 30 20 0 24,196,788 2,207,92227,854,000
7/1/2005 1950 Assumption Ch 30 21 0 9,321,466 832,68310,645,000
7/1/2005 1950 Plan Change 30 21 0 520,674 46,512596,000
7/1/2005 Benefit Increases 30 21 0 57,568,434 5,142,56864,941,000
7/1/2006 1950 Actuarial Loss 15 7 0 10,593,506 1,860,51817,638,000
7/1/2006 1950 Plan Change 30 22 0 498,036 43,636552,000
7/1/2006 Benefit Increases 30 22 0 56,559,426 4,955,49362,216,000
7/1/2007 1950 Actuarial Loss 15 8 0 1,417,570 225,1332,120,000
7/1/2007 1950 Plan Change 30 23 0 64,955,968 5,591,36670,692,000
7/1/2007 Benefit Increases 30 23 0 461,297,760 39,708,201502,065,000
7/1/2008 Benefit Increases 15 9 0 29,329,146 4,277,06740,344,000
7/1/2009 Benefit Increases 15 10 0 29,152,354 3,950,77937,307,000
7/1/2009 Funding Method Chg 10 5 0 801,503,780 184,282,2841,352,071,000
7/1/2010 Assumption Changes 15 11 0 11,050,578 1,405,19613,283,000
7/1/2010 Benefit Increases 15 11 0 12,897,192 1,640,01315,500,000
7/1/2011 Actuarial Loss 15 12 0 217,199,752 26,120,105247,154,000
7/1/2011 Benefit Increases 15 12 0 12,143,670 1,460,37913,818,000
7/1/2012 Actuarial Loss 15 13 0 205,841,944 23,564,440223,191,000
7/1/2013 Actuarial Loss 15 14 0 38,005,968 4,164,65439,483,000
7/1/2013 Benefit Increases 15 14 0 22,814,792 2,500,02123,701,000
7/1/2014 Assumption 15 15 0 143,059,696 15,076,128143,059,696
Total Charges:5,083,296,536 862,080,279
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Date
Established
Source of Change in
Unfunded Liability
Original
Amount
Original
Period Years Months
Outstanding
Balance
Amortization
Payment
Remaining Period 7/1/2014 7/1/2014
Appendix C - Minimum Funding Amortization Bases
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Credits
7/1/1979 Assumption Changes 40 5 0 3,822,588 878,89212,011,000
7/1/1988 Assumption Changes 30 4 0 132,336,358 36,754,732460,737,000
7/1/1990 1950 Assumption Ch 30 6 0 7,024,248 1,392,07518,772,000
7/1/1991 Assumption Changes 30 7 0 18,268,866 3,208,52840,246,000
7/1/1993 1950 Term. Of Covg 30 9 0 43,968,386 6,411,90686,219,000
7/1/1993 Term. Of Coverage 30 9 0 10,107,328 1,473,95118,492,000
7/1/1994 1950 Assumption Ch 30 10 0 52,202,150 7,074,52994,625,000
7/1/1996 1950 Assumption Ch 30 12 0 8,095,780 973,58612,942,000
7/1/1999 1950 Assumption Ch 30 15 0 22,659,560 2,387,94331,363,000
7/1/2000 1950 Assumption Ch 30 16 0 16,845,906 1,714,22622,441,000
7/1/2000 Assumption Changes 30 16 0 52,852,184 5,378,19767,650,000
7/1/2001 Assumption Changes 30 17 0 3,480,862 343,2294,326,000
7/1/2003 1950 Actuarial Gain 15 4 0 13,186,096 3,662,27035,840,000
7/1/2004 1950 Assumtion Chg 30 20 0 13,845,832 1,263,41216,250,000
7/1/2004 Assumption Changes 30 20 0 109,910,724 10,029,194126,541,000
7/1/2005 1950 Actuarial Gain 15 6 0 6,477,702 1,283,75912,303,000
7/1/2005 Funding Method Chg 10 1 0 26,980,184 26,980,184196,925,000
7/1/2006 1950 Assumption Ch 30 22 0 19,990,432 1,751,47622,227,000
7/1/2006 Funding Method Chg 10 2 0 83,575,184 43,297,987316,469,000
7/1/2007 Funding Method Chg 10 3 0 135,021,656 48,298,518353,477,000
7/1/2007 Funding Method Chg 10 3 0 179,516,106 64,214,602469,970,000
7/1/2008 Assumption Changes 15 9 0 130,966,220 19,098,793180,156,000
7/1/2010 Actuarial Gain 15 11 0 199,254,286 25,337,263239,507,000
7/1/2010 Funding Method Chg 10 6 0 258,905,416 51,310,210376,915,000
7/1/2013 Assumption Changes 15 14 0 71,919,848 7,880,90174,715,000
7/1/2014 Experience 15 15 0 11,423,168 1,203,81311,423,168
7/1/2014 Method 10 10 0 215,359,400 29,185,892215,359,400
Total Credits:1,847,996,470 402,790,068
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Date
Established
Source of Change in
Unfunded Liability
Original
Amount
Original
Period Years Months
Outstanding
Balance
Amortization
Payment
Remaining Period 7/1/2014 7/1/2014
Appendix C - Minimum Funding Amortization Bases
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Net Charges:3,235,300,066 459,290,211
Less Credit Balance:
Less Reconciliation Balance:
Unfunded Actuarial Liability:
1,444,564,155
0
1,790,735,911
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Appendix D – Summary of Endangered and Critical Status Rules
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page D-1

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  became effective
with the plan year beginning in 2008 and  were  originally  scheduled  to  “sunset”  in  2015.

The  Multiemployer  Pension  Reform  Act  of  2014  (“MEPRA”),  enacted  in  December  2014,  
made the provisions contained in the PPA permanent. MEPRA 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”) Endangered Status (“Yellow  Zone”)

GETTING IN:
Plan is Critical if it is described in one or
more of the following:

Funded percentage is less than 65%,
and, inability to pay benefits and
expenses for next 7 years, or

Projected funding deficiency (not
recognizing extensions) 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 non-
actives is greater than for actives, and,
(3) projected funding deficiency (not
recognizing extensions) in the current
year or next 4 years, or

Inability to pay benefits and expenses for
next 5 years.
Plan is Endangered if it is not Critical and it is
described in one of the following:

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”

A plan that meets one of the two Endangered
Status criteria above, but was not in Critical or
Endangered for the preceding year, will remain
not Critical or Endangered (i.e. it will be in
“green  zone”)  provided  it  is  not projected to
meet either of the two Endangered Status
criteria as of the end of the 10th plan year
following the certification year
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Appendix D – Summary of Endangered and Critical Status Rules
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page D-2

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Critical Status (“Red  Zone”) Endangered Status (“Yellow  Zone”)

GETTING IN (cont.):
A plan with an amortization extension under
IRC Section 431(d) or 412(e) that previously
emerged from Critical Status in PYB 2015 or
later will re-enter Critical Status only 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 of the following:

No longer meets any of the Critical
Status tests, and,

No projected funding deficiencies in the
current year or next 9 years (including
amortization extensions), and,

No projected insolvencies in the next 30
years

A plan with an amortization extension under
IRC Section 431(d) or 412(e) emerges from
Critical Status when it meets all the following:

No projected funding deficiencies in the
current year or next 9 years (including
amortization extensions), and,

No projected insolvencies in the next 30
years
Plan emerges from Endangered Status when it
no longer meets the requirements to be
classified as Endangered or when it enters
Critical Status
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Appendix D – Summary of Endangered and Critical Status Rules
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page D-3

RULES FOR ENDANGERED AND CRITICAL STATUS (CONT.)

Restrictions for Endangered and Critical Plans
The Plan Sponsor of a plan that is in Endangered or Critical status faces 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
through adoption of funding
improvement/rehabilitation
plan  (“plan  adoption  period”)
No reduction in level of contributions for any participants
No suspension of contributions
No exclusion of new or younger employees
No amendment that increases the liabilities of the plan by
reason of any increase in benefits, change in accrual, or
change in vesting unless required by law
After adoption of a funding
improvement/rehabilitation
plan until end of funding
improvement/rehabilitation
period
Cannot be amended so as to be inconsistent with funding
improvement/rehabilitation plan
No amendment that increases benefits, including future
accruals, unless actuary certifies as being paid for with
contributions not contemplated in funding improvement/
rehabilitation plan and still expected to meet applicable
benchmark after considering 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 for
automatic cash-out.

Critical and Declining Plans
Beginning in 2015, plans that 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” Status. 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 MEPRA 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 Plan Sponsor must implement the update
to the schedule previously adopted.
PBGC premium doubled and indexed
PBGC ability to facilitate mergers and partitions expanded
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Appendix E – Glossary of Common Pension Terms
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page E-1

GLOSSARY OF COMMON PENSION TERMS

Benefits

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 the law, Accrued Benefits generally may not be reduced
by plan amendment (note that special rules allowing for limited reduction and/or
suspension of accrued benefits apply to critical status, critical and declining
status and insolvent 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.
Why   it   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. The Assumed Rate of Return has an
inverse relationship with plan liabilities. In other words, a lower Assumed Rate
of Return increases liabilities, while a higher Assumed Rate of Return
decreases plan Liabilities.
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Appendix E – Glossary of Common Pension Terms
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July 1, 2014 Actuarial Valuation
Page E-2

GLOSSARY OF COMMON PENSION TERMS (CONT.)

Liabilities

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  
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 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.
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Appendix E – Glossary of Common Pension Terms
United Mine Workers of America 1974 Pension Plan
July 1, 2014 Actuarial Valuation
Page E-3

GLOSSARY OF COMMON PENSION TERMS (CONT.)

Funding

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 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 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.
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