20230109INT to Staff Attachment - Response to No. 15_2021 Annual Funding Notice.pdf

Idaho Pipe Trades
Health & Welfare Trust
LU 296 & LU 648
IDAHO PIPE TRADES TRUST
Administrative Office

Plumbers & Pipefitters
Pension Trust
LU 296 LU 648 LU 41

PMB #116 · 5331 S Macadam Avenue Suite 258, · Portland, OR 97239
Telephone [phone] or [phone] FAX [phone]
www.iptt.org
ANNUAL FUNDING NOTICE
FOR
IDAHO PLUMBERS AND PIPEFITTERS PENSION PLAN

Introduction

This notice includes important information about the funding status of your multiemployer
pension plan (“the Plan”). It also includes general information about the benefit payments
guaranteed by the Pension Benefit Guaranty Corporation (“PBGC”), a federal insurance agency.
All traditional pension plans (called “defined benefit pension plans”) must provide this notice
every year regardless of their funding status. This notice does not mean that the Plan is
terminating. It is provided for informational purposes and you are not required to respond in any
way. This notice is required by federal law. This notice is for the plan year beginning June 1,
2020 and ending May 31, 2021 (“Plan Year”).

How Well Funded Is Your Plan
The law requires the administrator of the Plan to tell you how well the Plan is funded using a
measure called the “funded percentage.” The Plan divides its assets by its liabilities on the
Valuation Date for the plan year to get to this percentage. In general, the higher the percentage,
the better funded the plan. The Plan’s funded percentage for the Plan Year and each of the two
preceding plan years is shown in the chart below. The chart also states the value of the Plan’s
assets and liabilities for the same period.

2020/2021 2019/2020 2018/2019
Valuation Date June 1, 2020 June 1, 2019 June 1, 2018
Funded Percentage 84% 83% 82%
Value of Assets $125,937,325 $119,402,651 $113,314,179
Value of Liabilities $149,117,768 $143,499,971 $137,947,826

Year-End Fair Market Value of Assets
The asset values in the chart above are measured as of the Valuation Date. They also are
"actuarial values." Actuarial values differ from market values in that they do not fluctuate daily
based on changes in the stock or other markets. Actuarial values smooth out those fluctuations
and can allow for more predictable levels of future contributions. Despite the fluctuations,
market values tend to show a clearer picture of a plan's funded status at a given point in time.
The asset values in the chart below are market values and are measured on the last day of the
Plan Year. The chart also includes the year-end market value of the Plan's assets for each of
the two preceding plan years.

Idaho Pipe Trades
Health & Welfare Trust
LU 296 & LU 648
IDAHO PIPE TRADES TRUST
Administrative Office

Plumbers & Pipefitters
Pension Trust
LU 296 LU 648 LU 41

PMB #116 · 5331 S Macadam Avenue Suite 258, · Portland, OR 97239
Telephone [phone] or [phone] FAX [phone]
www.iptt.org
Valuation Date May 31, 2021 May 31, 2020 May 31, 2019
Fair Market Value of Assets $ 148,500,000* $ 120,199,841 $ 114,217,141

* The Fair Market Value of Assets for May 31, 2021 is based on preliminary financial statements. This
value is unaudited and subject to change.

Endangered, Critical, or Critical and Declining Status
Under federal pension law, a plan generally is in "endangered" status if its funded percentage is
less than 80 percent. A plan is in "critical" status if the funded percentage is less than 65
percent (other factors may also apply). A plan is in "critical and declining" status if it is in critical
status and is projected to become insolvent (run out of money to pay benefits) within 15 years
(or within 20 years if a special rule applies). If a pension plan enters endangered status, the
trustees of the plan are required to adopt a funding improvement plan. Similarly, if a pension
plan enters critical status or critical and declining status, the trustees of the plan are required to
adopt a rehabilitation plan. Funding improvement and rehabilitation plans establish steps and
benchmarks for pension plans to improve their funding status over a specified period of time.
The plan sponsor of a plan in critical and declining status may apply for approval to amend the
plan to reduce current and future payment obligations to participants and beneficiaries.

The Plan was not in endangered, critical, or critical and declining status in the Plan Year.

Participant Information
The total number of participants and beneficiaries covered by the Plan on the valuation date
was 2,081. Of this number, 954 were current employees, 739 were retired and receiving
benefits, and 388 were retired or no longer working for the employer and have a right to future
benefits.

Funding & Investment Policies
Every pension plan must have a procedure to establish a funding policy for plan objectives. A
funding policy relates to how much money is needed to pay promised benefits. The funding
policy of the Plan is to contribute at a level consistent with applicable bargained and special
agreement contracts. The Plan's resources are intended to fund Plan obligations. Plan
resources include accumulated Plan assets plus expected future contributions and investment
income. Plan obligations are benefit payments to current and future retirees and beneficiaries,
including benefits earned to date as well as benefits expected to be earned in the future. Plan
obligations also include expected expenses paid from Plan assets.
Pension plans also have investment policies. These generally are written guidelines or general
instructions for making investment management decisions. The Plan’s investment policy is
adopted by the Board of Trustees and includes investment objectives intended to reflect the

Idaho Pipe Trades
Health & Welfare Trust
LU 296 & LU 648
IDAHO PIPE TRADES TRUST
Administrative Office

Plumbers & Pipefitters
Pension Trust
LU 296 LU 648 LU 41

PMB #116 · 5331 S Macadam Avenue Suite 258, · Portland, OR 97239
Telephone [phone] or [phone] FAX [phone]
www.iptt.org
Plan’s long-term investment horizon. The Plan’s current investment objective is long-term in
nature. The objective is to maximize long-term growth of assets within prudent levels of risk
while targeting a total rate of return (as measured over a full market cycle) to exceed the
actuarial assumed rate of return.

Under the Plan’s investment policy, the Plan’s assets were allocated among the following
categories of investments, as of the end of the Plan Year. These allocations are percentages of
total assets:

Asset Allocations Percentage
Stocks 55%
Investment grade debt instruments 26%
High-yield debt instruments 3%
Real estate 8%
Other 8%

Right to Request a Copy of the Annual Report
Pension plans must file annual reports with the US Department of Labor. The report is called the
"Form 5500." These reports contain financial and other information. You may obtain an
electronic copy of your Plan's annual report by going to www.efast.dol.gov and using the search
tool. Annual reports also are available from the US Department of Labor, Employee Benefits
Security Administration's Public Disclosure Room at 200 Constitution Avenue, NW, Room N-
1513, Washington, DC 20210, or by calling 202.693.8673. Or you may obtain a copy of the
Plan's annual report by making a written request to the plan administrator. Annual reports do not
contain personal information, such as the amount of your accrued benefit. You may contact your
plan administrator if you want information about your accrued benefits. Your plan administrator
is identified below under "Where to Get More Information."

Summary of Rules Governing Insolvent Plans
Federal law has a number of special rules that apply to financially troubled multiemployer plans
that become insolvent, either as ongoing plans or plans terminated by mass withdrawal. The
plan administrator is required by law to include a summary of these rules in the annual funding
notice. A plan is insolvent for a plan year if its available financial resources are not sufficient to
pay benefits when due for that plan year. An insolvent plan must reduce benefit payments to the
highest level that can be paid from the plan's available resources. If such resources are not
enough to pay benefits at the level specified by law (see Benefit Payments Guaranteed by the
PBGC, below), the Plan must apply to the PBGC for financial assistance. The PBGC will loan

Idaho Pipe Trades
Health & Welfare Trust
LU 296 & LU 648
IDAHO PIPE TRADES TRUST
Administrative Office

Plumbers & Pipefitters
Pension Trust
LU 296 LU 648 LU 41

PMB #116 · 5331 S Macadam Avenue Suite 258, · Portland, OR 97239
Telephone [phone] or [phone] FAX [phone]
www.iptt.org
the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may
be restored if the plan's financial condition improves.

A plan that becomes insolvent must provide prompt notice of its status to participants and
beneficiaries, contributing employers, labor unions representing participants, and PBGC. In
addition, participants and beneficiaries also must receive information regarding whether, and
how, their benefits will be reduced or affected, including loss of a lump sum option.

Benefit Payments Guaranteed by the PBGC
The maximum benefit that the PBGC guarantees is set by law. Only benefits that you have
earned a right to receive and that cannot be forfeited (called vested benefits) are guaranteed.
There are separate insurance programs with different benefit guarantees and other provisions
for single-employer plans and multiemployer plans. Your Plan is covered by PBGC's
multiemployer program. Specifically, the PBGC guarantees a monthly benefit payment equal to
100 percent of the first $11 of the Plan's monthly benefit accrual rate, plus 75 percent of the
next $33 of the accrual rate, times each year of credited service. The PBGC's maximum
guarantee, therefore, is $35.75 per month times a participant's years of credited service.

Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of
$600, the accrual rate for purposes of determining the PBGC guarantee would be determined
by dividing the monthly benefit by the participant's years of service ($600/10), which equals $60.
The guaranteed amount for a $60 monthly accrual rate is equal to the sum of $11 plus $24.75
(.75 x $33), or $35.75. Thus, the participant's guaranteed monthly benefit is $357.50
($35.75 x 10).

Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual
rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed
amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or
$17.75. Thus, the participant's guaranteed monthly benefit would be $177.50 ($17.75 x 10).

The PBGC guarantees pension benefits payable at normal retirement age and some early
retirement benefits. In addition, the PBGC guarantees qualified preretirement survivor benefits
(which are preretirement death benefits payable to the surviving spouse of a participant who
dies before starting to receive benefit payments). In calculating a person's monthly payment, the
PBGC will disregard any benefit increases that were made under a plan within 60 months
before the earlier of the plan’s termination or insolvency (or benefits that were in effect for less
than 60 months at the time of termination or insolvency). Similarly, the PBGC does not
guarantee benefits above the normal retirement benefit, disability benefits not in pay status, or
non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or
severance pay.

Idaho Pipe Trades
Health & Welfare Trust
LU 296 & LU 648
IDAHO PIPE TRADES TRUST
Administrative Office

Plumbers & Pipefitters
Pension Trust
LU 296 LU 648 LU 41

PMB #116 · 5331 S Macadam Avenue Suite 258, · Portland, OR 97239
Telephone [phone] or [phone] FAX [phone]
www.iptt.org
For additional information about the PBGC and the pension insurance program guarantees, go
to the Multiemployer Page on the PBGC’s website at www.pbgc.gov/multiemployer. Please
contact your employer or plan administrator for specific information about your pension plan or
pension benefit. PBGC does not have that information. See “Where to Get More Information
About Your Plan,” below.

Where to Get More Information
For more information about this notice, you may contact the Plan’s Administrative Office at
Idaho Plumbers and Pipefitters Pension Plan c/o BeneSys Inc. PMB #116 5331 S Macadam
Ave, Ste 258 Portland, OR 97239, [phone] or 1-[phone]. For identification
purposes, the official plan number is 001 and the plan sponsor’s name and employer
identification number or “EIN” is Idaho Plumbers and Pipefitters Pension Plan and 82-6010346.