International Painters and Allied Trades Industry Pension ... - IUPAT

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INVESTMENTSBackgroundUp to 1999, the Plan was 100% funded. Beginning in March 2000 and for more than two yearsthereafter, the stock market declined. After an intervening recovery, the Plan was 82.9% fundedand still was in “GREEN” status under the provisions in the Pension Protection Act of 2006(PPA) of January 1, 2008. As a result of the stock market decline in 2008, the Plan sufferedlosses in its investment portfolio of 23.6% (approximately $800 million). While favorable incomparison to a decline in the S & P 500 Index during 2008 of more than 37%, the declinedramatically affected the Plan’s funded status and produced the need for the FundingImprovement Plan.Investment PolicyThe investments of the Plan are managed with a primary focus on preservation of capital.Emphasis is placed on participation with the fixed income and equity broad market averagesduring times of rising markets and preservation of capital during periods of market contraction.The Plan seeks to earn total returns (income plus capital gains) in excess of major indices of eachasset class over a typical market cycle.PerformanceThe Plan has adopted an actuarial assumption for funding purposes that assumes the Plan willreceive returns on its investment portfolio at an average rate of 7.5% per year. After the losses of2001 and 2002, the Plan’s investment portfolio improved by 16.8%, 9.3%, 8.4%, 12.3% and 7%in 2003, 2004, 2005, 2006 and 2007, respectively, on a fair market value basis.On an actuarial asset basis, the Plan earned -8.43% from investments in 2008, 7.93% frominvestments in 2009 and 9.56% from investments in 2010. On a fair market value basis, the Planlost -23.15% on investments in 2008, and gained 8.54% from investments in 2009 and 10.38%from investments in 2010.Marquette Associates, the Plan’s investment consultant, prepares a regular summary of theinvestments (by manager or fund) and their performance. A full listing of investments is includedin the annual audit report, which is filed with Form 5500 and available on the Internet or byrequest.Investment AllocationThe Pension Plan assets are well diversified, spread among various classes of investments;including stocks, bonds, real estate, international equities, infrastructure, private equity and otherrecommended investment vehicles. The portfolio will be re-balanced on a regular basis to bringthe asset allocation of the plan in-line with the minimum and maximum ranges.IUPAT INDUSTRY PENSION PLAN – ANNUAL EMPLOYER & UNION REPORT (2010) 17
FUNDING STATUSThe Trustees have adopted the target asset allocation outlined below as a guide.Asset Class Minimum Target MaximumCash 0% 0% 5%Fixed Income 15% 20% 25%All/ Large Cap Equity 18% 23% 28%Mid-Cap Equity 0% 3.5% 5%Small-Cap Equity 0% 3.5% 5%International Equity 10% 15% 20%Hedge Fund of Funds 10% 15% 20%Real Estate 10% 12.5% 20%Infrastructure & Private Equity 0% 7.5% 10%IUPAT INDUSTRY PENSION PLAN – ANNUAL EMPLOYER & UNION REPORT (2010) 18
Page 2 and 3: TABLE OF CONTENTSINTRODUCTION......
Page 4 and 5: INTRODUCTIONNovember 2011To All Par
Page 6 and 7: PARTICIPANTSThe Plan and the Supple
Page 8 and 9: BENEFITSThe IUPAT Industry Pension
Page 10 and 11: BENEFITSRates between 71% and 100%
Page 12 and 13: EMPLOYERSThe IUPAT Industry Pension
Page 14 and 15: CONTRIBUTIONSThus, contributions ow
Page 16 and 17: FUNDING STATUSFunded PercentageThe
Page 18 and 19: FUNDING STATUSallocated to the Plan
Page 22 and 23: WITHDRAWAL LIABILITYBackgroundA mul
Page 24 and 25: WITHDRAWAL LIABILITYFor these tests
Page 26 and 27: WITHDRAWAL LIABILITYIndustry Pensio
Page 28 and 29: PLAN INFORMATIONWhere to Get More I
Page 30: INTERNATIONAL PAINTERS ANDALLIED TR

International Painters and Allied Trades Industry Pension ... - IUPAT

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