| TEMPLATE 7 |
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v20220701p |
| 7a - Assumption/Method Changes for SFA Eligibility |
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| File name: Template 7 Plan Name, where "Plan Name" is an abbreviated version of the plan name. |
| Instructions for Section C, Item (7)a. of the Instructions for Filing Requirements for Multiemployer Plans Applying for Special Financial Assistance: |
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| Sheet 7a of Template 7 is not required if the plan is eligible for SFA under § 4262.3(a)(2) (MPRA suspensions) or § 4262.3(a)(4) (certain insolvent plans) of PBGC’s special financial assistance regulation. |
| Sheet 7a of Template 7 is not required if the plan is eligible based on a certification of plan status completed before January 1, 2021. |
| Sheet 7a of Template 7 is not required if the plan is eligible based on a certification of plan status completed after December 31, 2020 but reflects the same assumptions as those in the pre-2021 certification of plan status. |
| Provide a table identifying which assumptions/methods used in determining the plan's eligibility for SFA differ from those used in the pre-2021 certification of plan status and brief explanations as to why using those assumptions/methods is no longer reasonable and why the changed assumptions/methods are reasonable. |
| This table should identify all changed assumptions/methods (including those that are reflected in the Baseline provided in Template 5A or Template 5B) and should be an abbreviated version of information provided in Section D, Item (6)a. of the SFA filing instructions. |
| For example, if the mortality assumption used in the pre-2021 certification of plan status is the RP-2000 mortality table, and the plan proposes to change to the Pri-2012(BC) table, complete one line of the table as follows: |
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(A) |
(B) |
(C) |
| Assumption/Method That Has Changed From Assumption/Method Used in Most Recent Certification of Plan Status Completed Prior to 1/1/2021 |
Brief description of assumption/method used in the most recent certification of plan status completed prior to 1/1/2021 |
Brief description of assumption/method used in showing the plan's eligibility for SFA (if different) |
Brief explanation on why the assumption/method in (A) is no longer reasonable and why the assumption/method in (B) is reasonable |
| Base Mortality Assumption |
RP-2000 mortality table |
Pri-2012(BC) mortality table |
Prior assumption is outdated. New assumption reflects more recently published experience for blue collar workers. |
| Add one line for each assumption/method that has changed from that used in the most recent certification of plan status completed prior to 1/1/2021. |
| Since this Template 7a is intended as an abbreviated version of more detailed information provided in Section D, Item (6)a. of the SFA filing instructions, it is not necessary to include full tables of rates at every age (e.g., for retirement, turnover, etc.). Instead, a high level description that focuses on what aspect of the assumption/method has changed is preferred. |
| Template 7 - Sheet 7a |
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v20220701p |
| Assumption/Method Changes - SFA Eligibility |
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| PLAN INFORMATION |
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Abbreviated
Plan Name: |
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| EIN: |
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| PN: |
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| Brief description of basis for qualifying for SFA (e.g., critical and declining status in 2020, insolvent plan, critical status and meet other criteria) |
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(A) |
(B) |
(C) |
| Assumption/Method That Has Changed From Assumption/Method Used in Most Recent Certification of Plan Status Completed Prior to 1/1/2021 |
Brief description of assumption/method used in the most recent certification of plan status completed prior to 1/1/2021 |
Brief description of assumption/method used in showing the plan's eligibility for SFA (if different) |
Brief explanation on why the assumption/method in (A) is no longer reasonable and why the assumption/method in (B) is reasonable |
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| TEMPLATE 7 |
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v20220701p |
| 7b - Assumption/Method Changes for SFA Amount |
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| File name: Template 7 Plan Name, where "Plan Name" is an abbreviated version of the plan name. |
| Instructions for Section C, Item (7)b. of the Instructions for Filing Requirements for Multiemployer Plans Applying for Special Financial Assistance: |
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| Provide a table identifying which assumptions/methods used in determining the amount of SFA differ from those used in the pre-2021 certification of plan status (except the non-SFA and SFA interest rates) and brief explanations as to why using those original assumptions/methods is no longer reasonable and why the changed assumptions/methods are reasonable. |
| Please state if the changed assumption is an extension of the CBU assumption or the administrative expenses assumption as described in Paragraph A "Adoption of assumptions not previously factored into pre-2021 certification of plan status" of Section III, Acceptable Assumption Changes of PBGC's guidance on Special Financial Assistance Assumptions. |
| This table should identify all changed assumptions/methods except for the interest rates (including those that are reflected in the Baseline provided in Template 5A or Template 5B) and should be an abbreviated version of information provided in Section D, Item (6)b. of the SFA filing instructions. |
| For example, if the mortality assumption used in the pre-2021 certification of plan status is the RP-2000 mortality table, and the plan proposes to change to the Pri-2012(BC) table, complete one line of the table as follows: |
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(A) |
(B) |
(C) |
| Assumption/Method That Has Changed From Assumption Used in Most Recent Certification of Plan Status Completed Prior to 1/1/2021 |
Brief description of assumption/method used in the most recent certification of plan status completed prior to 1/1/2021 |
Brief description of assumption/method used to determine the requested SFA amount (if different) |
Brief explanation on why the assumption/method in (A) is no longer reasonable and why the assumption/method in (B) is reasonable |
| Base Mortality Assumption |
RP-2000 mortality table |
Pri-2012(BC) mortality table |
Original assumption is outdated. New assumption reflects more recently published experience for blue collar workers. |
| For example, assume the plan is projected to be insolvent in 2029 in the pre-2021 certification of plan status. The plan changes its CBU assumption by extending the assumption to the later projection years as described in Paragraph A, "Adoption of assumptions not previously factored into pre-2021 certification of plan status" of Section III, Acceptable Assumption Changes of PBGC's guidance on Special Financial Assistance Assumptions. Complete one line of the table as follows: |
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(A) |
(B) |
(C) |
| Assumption/Method That Has Changed From Assumption Used in Most Recent Certification of Plan Status Completed Prior to 1/1/2021 |
Brief description of assumption/method used in the most recent certification of plan status completed prior to 1/1/2021 |
Brief description of assumption/method used to determine the requested SFA amount (if different) |
Brief explanation on why the assumption/method in (A) is no longer reasonable and why the assumption/method in (B) is reasonable |
| CBU Assumption |
Decrease from most recent plan year's actual number of CBUs by 2% per year to 2028 |
Same number of CBUs for each projection year to 2028 as shown in (A), then constant CBUs for all years after 2028. |
Original assumption does not address years after original projected insolvency in 2029. Proposed assumption uses acceptable extension methodology. |
| Add one line for each assumption/method that has changed from that used in the most recent certification of plan status completed prior to 1/1/2021. |
| Since this Template 7b is intended as an abbreviated version of more detailed information provided in Section D, Item (6)b. of the SFA filing instructions, it is not necessary to include full tables of rates at every age (e.g., for retirement, turnover, etc.). Instead, a high level description that focuses on what aspect of the assumption/method has changed is preferred. |