American Federation of Musicians and Employers' Pension Fund and Subsidiary Consolidated Financial Statements For the Years Ended March 31, 2015 and 2014 BoNDBEEBE ACCOUNTANTS & ADVISORS
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY TABLE OF CONTENTS FOR THE YEARS ENDED MARCH 31, 2015 AND 2014 REPORT OF INDEPENDENT AUDITORS 1-2 Fl NANCIAL STATEMENTS Consolidated Statements of Net Assets Available for Benefits Consolidated Statements of Changes in Net Assets Available for Benefits Consolidated Statement of Accumulated Plan Benefits Consolidated Statement of Changes in Accumulated Plan Benefits Notes to Consolidated Financial Statements REPORT OF INDEPENDENT AUDITORS ON SUPPLEMENTAL INFORMATION REQUIRED BY THE DEPARTMENT OF LABOR'S RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 3 4 5 6 7-26 27 SCHEDULE H - Item 4i SCHEDULE H - Item 4j Schedule of Assets (Held at End of Year) Schedule of Reportable Transactions
BoNDBEEBE ACCOUNTANTS & ADVISORS REPORT OF INDEPENDENT AUDITORS To the Trustees and Participants American Federation of Musicians and Employers' Pension Fund and Subsidiary Report on the Financial Statements We have audited the accompanying consolidated financial state.ments of the American Federation of Musicians and Employers' Pension Fund and Subsidiary (the Plan), which comprise the consolidated statement of net assets available for benefits as of March 31, 2015, the related consolidated statement of changes in net assets available for benefits for the year then ended, the consolidated statement of accumulated plan benefits as of March 31, 2014, the related consolidated statement of changes in accumulated plan benefits for the year then ended, and the related notes to the consolidated financial statements. Management's Responsibility for the Financial Statements The Plan's management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. A PROFESSIONAL CORPORATION WITH OFFICES IN BETHESDA, MD AND ALEXANDRIA, VA ~21 1
REPORT OF INDEPENDENT AUDITORS Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, information regarding the American Federation of Musicians and Employers' Pension Fund and Subsidiary's net assets available for benefits as of March 31, 2015, and the changes therein for the year then ended, and its financial status as of March 31, 2014, and changes therein for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter The consolidated financial statements of the American Federation of Musicians and Employers' Pension Fund and Subsidiary for the year ended March 31, 2014 were audited by other auditors whose report dated January 12, 2015, expressed an unmodified opinion on those statements. A Professional Corporation Bethesda, MD December 18, 2015 2
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY CONSOLIDATED STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS MARCH 31, 2015 AND 2014 ASSETS Investments Investments - at fair value Short-term securities under security lending program 2015 2014 $ 1,789,663,022 $ 1,813,601,682 9,276, 159 14,920,549 1,798,939, 181 1,828,522,231 Receivables Due from broker for securities sold Employer contributions Employers withdrawal liability - net Accrued interest and dividends 48,985,913 21,500,686 6,491,082 6,229,263 1,317,314 1,680,027 2,390,501 2,713,919 59, 184,810 32, 123,895 Cash and cash equivalents Equipment, furniture and leasehold improvements - net Other assets TOTAL ASSETS 8,741,279 12,062,901 1,617,176 2,362, 195 788,629 949,728 1,869,271,075 1,876,020,950 LIABILITIES Obligation under security lending program Accrued expenses and other liabilities Due to broker for securities purchased TOTAL LIABILITIES NET ASSETS AVAILABLE FOR BENEFITS 11,853,897 17,498,287 3,717, 123 3,691,844 35,619,110 31,830,494 51,190,130 53,020,625 $ 1,818,080,945 $ 1,823,000,325 See Notes to Consolidated Financial Statements 3
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS ENDED MARCH 31, 2015 AND 2014 ADDITIONS Investment income Interest and dividends Net appreciation in fair value Investment expenses Security lending fees Employer contributions Withdrawal liability assessment change Other income TOTAL ADDITIONS DEDUCTIONS Benefit payments Administrative expenses TOTAL DEDUCTIONS NETINCREASE(DECREASE) NET ASSETS AVAILABLE FOR BENEFITS AT BEGINNING OF YEAR NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR 2015 $ 35,963, 170 66,876,854 102,840,024 (11,690,373) {53,975} 91,095,676 61,226,704 377,331 7,874 152, 707, 585 144, 187,030 13,439,935 157,626,965 (4,919,380) 1,823,000,325 $ 1,818,080,945 2014 $ 35,912,189 116,956,695 152,868,884 (11,862,306) {70, 127} 140,936,451 59,665,685 761,424 58,963 201,422,523 137,688,606 14,220,836 151,909,442 49,513,081 1,773,487,244 $ 1,823,000,325 See Notes to Consolidated Financial Statements 4
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY CONSOLIDATED STATEMENT OF ACCUMULATED PLAN BENEFITS MARCH 31, 2014 VESTED BENEFITS Active participants Terminated vested participants Age retirees Beneficiaries Disabled participants TOTAL VESTED BENEFITS NONVESTED BENEFITS TOTAL ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS $ 956,251,210 318,977,785 1,047,473,964 63,218,934 26,123,886 2,412,045, 779 45,664,451 $ 2,457,710,230 See Notes to Consolidated Financial Statements 5
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY CONSOLIDATED STATEMENT OF CHANGES IN ACCUMULATED PLAN BENEFITS FOR THE YEAR ENDED MARCH 31, 2014 ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS AT BEGINNING OF YEAR $ 2,390,399,094 INCREASE (DECREASE) DURING THE YEAR ATTRIBUTABLE TO Interest Actuarial experience and accumulation of benefits Benefits paid NET INCREASE ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS AT END OF YEAR 174,116,609 30,883,133 (137,688,606) 67,311,136 $ 2,457,710,230 See Notes to Consolidated Financial Statements 6
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED MARCH 31, 2015 AND 2014 NOTE 1: PLAN DESCRIPTION AND FUNDING The American Federation of Musicians and Employers' Pension Fund and Subsidiary (the Plan) is a multiemployer, noncontributory defined benefit pension plan primarily covering individuals covered under collective bargaining agreements of the American Federation of Musicians of the United States and Canada, AFL-CIO or one of its affiliated local unions (collectively, the Union). The Plan is operated by a Board of Trustees with equal representation from the Union and the employers. The Trustees serve without compensation from the Plan. General The following brief description of the Plan is provided for general information purposes only. Participants should refer to the Plan document for more complete information. The Plan is funded by employer contributions and investment returns. Employer contributions are based on a participant's covered earnings pursuant to the terms of the respective collective bargaining agreements between the employer and the Union, or other approved agreements, at various fixed contribution percentage rates. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA}, and has complied with the applicable minimum funding requirements. Eligibility An individual is eligible to become a participant of the Plan if both of the following conditions are met: The individual is employed as a musician, by the Plan, the Union, or other employer acceptable to the Board of Trustees, and The individual's employer has entered into a collective bargaining agreement, participation agreement or similar agreement acceptable to the Board of Trustees requiring the employer to contribute to the Plan on the employee's behalf. In order to become a participant, an eligible individual must earn at least $750 of covered earnings during a calendar year (also known as one quarter-year of vesting service). Pension Benefits A participant earns the right to receive a Regular Pension Benefit when one of the following thresholds is met: completion of 5 years of vesting service, including at least one quarter-year of vesting service after 1986; completion of 10 years of vesting service, with no vesting service after 1986; or reaching age 65 (or older) while still a participant, or, if later, the date on which the participant completes 5 years of participation on or after April 1, 1988. Participants with fewer than 3 years of vesting service on January 1, 2004 will need $750 of covered earnings during a calendar year to receive a one quarter-year of vesting service, or $3,000 during a calendar year to receive a full year of vesting service. Also, each participant with three or more years of vesting service on January 1, 2004 will continue to earn vesting service under the rules in effect before January 1, 2004 unless the participant has a permanent break-in-service after 2003. Prior to January 1, 2004, participants received one quarter-year of vesting service for each $375 of covered earnings during a calendar year, up to a maximum of one year of vesting service per calendar year for covered earnings of $1,500 or more. 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: PLAN DESCRIPTION AND FUNDING - continued The Plan also provides for certain periods of non-covered employment and military service to be counted in determining years of vesting service. For employment before 1977, vesting service was determined according to a different schedule. The Regular Pension Benefit, generally paid as either a single life or a joint-and-survivor annuity, consists of monthly payments based on the total contributions earned by a participant through the participant's pension effective date. The Regular Pension Benefit is calculated by multiplying each $100 of contributions by the applicable benefit multiplier, which is determined by the participant's age at his/her pension effective date and when the contributions were earned. Participants who currently are receiving a pension and return to work continue to receive their pension. In addition, they continue to earn additional benefits that are calculated differently depending on age. Additional benefits earned by working pensioners before normal retirement age are the greater of (1) the difference between (i) the monthly early retirement benefit being paid and (ii) the total benefit calculated as if the early retirement benefit had not begun, minus the actuarial value of benefits received, and (2) the sum of all of the annual benefits payable with respect to contributions earned through May 31, 201 O under specified rules that were in effect before 1996. Additional benefits earned by working pensioners after age 65 will be reduced by the actuarial equivalent, as defined, of the benefits paid during the previous calendar year, so long as those benefits were both earned and paid after 2003. Disability Benefits A participant with ten years of vesting service who has not started to receive a regular pension benefit and becomes permanently and totally disabled is entitled to a disability pension benefit. The monthly disability benefit is calculated by multiplying each $100 of contributions by the applicable age 65 benefit multipliers and is actuarially reduced to reflect early commencement. Death Benefits The Plan provides for the payment of certain benefits to a participant's designated beneficiary upon the death of a participant. The calculation and form of death benefits are determined by the participant's status at the time of death. Pension Protection Act Filing of Critical Status On June 29, 2015 and June 27, 2014, respectively, the actuary certified that for the Plan years beginning April 1, 2015 and 2014, respectively, the Plan is in "critical" status under the Pension Protection Act of 2006 (PPA). The significance of entering critical status is that the Plan's Board of Trustees is required by law to adopt a Rehabilitation Plan, consistent with the requirements of the PPA, designed to improve the Plan's financial health and to allow it to emerge from critical status. On April 15, 2010, the Board adopted a Rehabilitation Plan consistent with this requirement. The Rehabilitation Plan has been amended since the adoption. The duration of the Rehabilitation Plan is currently indefinite. The Plan is not expected to emerge from critical status during the 10-year Rehabilitation Plan period that began April 1, 2013. The following benefits and benefit alternatives available under the Plan were eliminated under the Rehabilitation Plan, effective June 1, 2010: (i) early retirement subsidies; (ii) benefit guarantees for the single life annuity; (iii) "pop-up" and benefit guarantee features of the 50% joint and survivor annuity; (iv) post-normal retirement age subsidies; (v) certain forms of benefit for merged plans; and (vi) the lump-sum form of benefit offered by the Plan (not including lump sums with an actuarial present value of $5,000 or less). 8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: PLAN DESCRIPTION AND FUNDING - continued The Rehabilitation Plan also required additional employer contributions to the Plan. Effective for contributions earned on or after June 1, 201 O but before April 1, 2011, the contribution rate was 104% of the contribution rate otherwise in effect under the collective bargaining agreement or expired collective bargaining agreement. Effective for contributions earned on or after April 1, 2011 and thereafter, the contribution rate is 109% of the contribution rate otherwise in effect under the collective bargaining agreement or expired collective bargaining agreement (excluding the 4% increase, which is not cumulative). Consistent with the PPA, if the collective bargaining agreements were not amended to include the new contribution rates under the Rehabilitation Plan, mandatory surcharges on employer contributions were established as follows: (i) effective for contributions earned on or after June 1, 2010 and before April 1, 2011, the surcharge was 5% of the employer's contributions to the Plan; and (ii) effective for contributions earned on or after April 1, 2011, the surcharge is 10% of the employer's contributions to the Plan. Surcharges do not generate benefit accruals and are included in employer contributions on the consolidated statements of changes in net assets available for benefits. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Principles of Consolidation The consolidated financial statements include the accounts of the Plan and the Plan's wholly owned subsidiary, AFM-EPF Leasing LLC (Leasing). Leasing was organized on April 8, 1998, for the purpose of entering into a lease for office space for the Plan. On November 28, 2012, a new subsidiary, AFM 14 PENN LLC (LLC), was organized, for the purpose of entering into a new lease for office space for the Plan. Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein; disclosure of contingent assets and liabilities; and the actuarial present value of accumulated plan benefits at the date of the financial statements, and changes therein. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that subject the Plan to concentrations of credit risk include cash, short-term investment funds and money market funds. The Plan maintains accounts at several high quality financial institutions. While the Plan attempts to limit any financial exposure, its cash deposit balances may, at times, exceed Federally insured limits. The Plan has not experienced any losses on such accounts. Cash Equivalents Highly liquid investments with a maturity of three months or less, when acquired, are considered cash equivalents. Cash equivalents include money market funds and are valued at cost, which approximates fair value. 9
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Investment Valuation and Income Recognition The following is a description of the valuation methodologies used for assets measured at fair value. Corporate stocks - valued at closing quoted market prices in active markets in which the securities are traded. Corporate bonds, asset-backed securities, and other bonds - valued using quoted prices of like assets, corroborated market data, indices and/or yield curves. U.S. government bonds (including derivatives), U.S. agency obligations, and mortgage-backed securities - are valued using closing quoted market prices in active markets in which the securities are traded. Other U.S. government bonds (including derivatives), U.S. agency obligations, and mortgage-backed securities are valued using quoted prices of like assets, corroborated market data, indices and/or yield curves. Short-term investments - valued at cost which approximates fair value. Collective trusts - valued at net asset value (NAV). The NAV, as provided by the investment advisor, is used as a practical expedient to estimate fair value. The NAV of these investments is based on the fair value of the underlying assets held by the fund less its liabilities. Refer to Note 5 for redemption policies. Limited partnerships, 103-12 investment entities, and other commingled funds - valued at NAV. The NAV, as provided by the investment advisor, is used as a practical expedient to estimate fair value. The NAV of these investments is based on the fair value of the underlying assets held by the fund less its liabilities. Refer to Note 5 for redemption policies. Registered investment companies - mutual funds are valued at closing quoted market prices in active markets which represent the net asset value of shares held by the Plan at year end. Other registered investment companies are valued on the basis of the NAV per share of the last business day of the year. Short-term securities under security lending program - valued using quoted prices of like assets, corroborated market data, indices and/or yield curves. Realized and unrealized gains and losses on the value of investments are recognized in the net appreciation in fair value of investments on the statements of changes in net assets available for benefits. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Purchases and sales are recorded on a trade-date basis. Employer Contributions Receivable For the fiscal years ended March 31, 2015 and 2014, the Plan reported as employer contributions receivable any contributions due to the Plan subsequent to the fiscal year-end date which related to engagements performed on or before March 31 of the respective years. No provision for uncollectible accounts has been reported, as management believes all receivables to be collectible. 10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued The Plan, in its normal course of business, performs employer compliance audits of contributing employers to monitor the contributing employers' compliance with their obligation to make contributions. It is the Plan's policy that any additional employer contributions that are due to the Plan based on the aforementioned engagements are recorded as income in the period in which such amounts are received. Employers' Withdrawal Liability Each contributing employer is required to pay the Plan all amounts due as withdrawal liability resulting from a partial or complete withdrawal from the Plan, in accordance with Article XIII of the Agreement and Declaration of Trust of the Plan and ERISA. Withdrawal liability represents a withdrawing employer's share of the unfunded vested benefit liability (UVB) of the Plan. The UVB arises when the actuarial value of a Plan's vested accrued benefits exceeds the fair value of the Plan's assets. A portion of the Plan's actuarially determined UVB is allocated to a withdrawing employer. For a complete withdrawal, the Plan determines the amount of withdrawal liability using the "one-pool" method, set forth in ERISA. During the years ended March 31, 2015 and 2014, management of the Plan adjusted previous years' withdrawal liability estimates. The adjustments are reflected in the statements of changes in net assets available for benefits as a withdrawal liability assessment change. As of March 31, 2015 and 2014, the Plan had receivables from withdrawing employers in the amount of $9,097, 101 and $9,258, 753, respectively. The amount deemed doubtful of collection, totaling $7,779,787 and $7,578,726 as of March 31, 2015 and 2014, was estimated based on an analysis by management. Fixed Assets and Depreciation and Amortization Fixed assets are capitalized at cost. Costs of major additions, replacements and improvements are capitalized. Maintenance and repairs which do not improve or extend the useful lives of the respective assets are charged to expense as incurred. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets as follows: Computer software Computer equipment Office furniture and equipment Leasehold improvements 3 years 5 years 10 years Lesser of the estimated life or the remaining term of lease Payment of Benefits Benefits are recorded when paid. Subsequent Events In preparing these consolidated financial statements, management of the Plan has evaluated events and transactions that occurred after March 31, 2015 for potential recognition or disclosure in the consolidated financial statements. These events and transactions were evaluated through December 18, 2015, the date that the consolidated financial statements were available to be issued. NOTE 3: ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS Accumulated plan benefits are those future periodic payments, including lump-sum distributions, that are attributable under the Plan's provisions to the service that participants have rendered. Accumulated plan benefits include benefits expected to be paid to (a) retired or terminated participants or their beneficiaries, (b) beneficiaries of participants who have died, and (c) present participants or their beneficiaries. Benefits under the Plan are based on a basic monthly amount for each $100 of contributions made to the Plan on a participant's behalf. 11
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3: ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS - continued The actuarial present value of accumulated plan benefits is determined by the Plan's consulting actuary, Milliman, Inc., and is that amount that results from applying actuarial assumptions to adjust the accumulated plan benefits to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the valuation date and the expected date of payment. The assumptions are based on the presumption that the Plan will continue. Were the Plan to terminate, different actuarial assumptions and other factors might be applicable in determining the actuarial present value of the benefit obligations. The computations of the actuarial present value of accumulated plan benefits were made as of April 1, 2014. Had the valuation been performed as of March 31, 2014, there would be no material difference. The following were significant assumptions used in the valuation as of April 1, 2014: Investment Earnings 7.5% (net of investment-related administrative expenses). The current liability interest rate assumption was changed from 3.69% used in the prior valuation to 3.62% used in the valuation as of April 1, 2014. Actuarial Cost Method Entry Age Normal Actuarial Cost Method Actuarial Value of Assets The fair value of assets is adjusted by smoothing the differences between the expected fair value of assets and the actual fair value of assets from the past five years. In accordance with the special asset valuation rule under funding relief, the amount of the difference in expected fair value of assets and the actual fair value of assets for the Plan year ending March 31, 2009 is amortized over a 10-year period. The expected value of assets for each year is the fair value of assets at the valuation date for the prior year brought forward with interest at the valuation rate to the current year plus contributions minus benefit payments and administrative expenses, all adjusted with interest at the valuation rate from the prior year to the valuation date for the current year. The actuarial value of assets is the resulting amount except if the resulting amount is greater than 120% of the fair value, actuarial value of assets is set equal to 120% of fair value of assets and if the resulting amount is less than 80% of the fair value, actuarial value of assets is set equal to 80% of fair value of assets. Postretirement Benefit Accruals Annual Contribution Amount Attained age 65-75 76-80 81-85 86-90 91-95 $ $ $ $ $ 300 240 180 120 60 Mortality Rates Healthy: RP - 2000 Combined Blue Collar Mortality Table projected to 2016 with separate rates for males and females 12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3: ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS - continued Disabled: RP - 2000 Disabled Mortality Table projected to 2016 with separate rates for males and females Termination Rates Termination rates have been separated into two groups: (1) participants who earned less than $10,000, or (2) participants who earned $10,000 or more in the plan year prior to the valuation date. In each group, termination rates vary by age and years of service. Retirement Rates Attained age Retirement Rate 55 56 57-58 59 60-61 62-63 64 65 66-69 70 and over 5.0 % 2.5 % 3.0 % 4.0 % 7.5 % 10.0 % 15.0 % 50.0 % 20.0 % 100.0 % Disability Rates None Pre-retirement Death Benefits 80% of the participants are assumed to have beneficiaries. Male participants are assumed to be three years older than female beneficiaries and female participants are assumed to be three years younger than male beneficiaries. Administrative Expenses Prior years' administrative expenses Future Benefit Accruals Future years' contributions for each active employee are assumed to increase by 2. 75% per year from those contributions reported for the prior pension credit year. Assumed Age of Commencement of Deferred Benefits 65 Special Amortization Rule The Plan's investment loss for the Plan year ended March 31, 2009 is treated separately from other investment gains/losses, to be amortized in equal installments over the period beginning from April 1, 2009 through March 31, 2039. 13
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3: ACTUARIAL PRESENT VALUE OF ACCUMULATED PLAN BENEFITS - continued The foregoing actuarial assumptions are based on the presumption that the Plan will continue. Were the Plan to terminate, different actuarial assumptions and other factors might be applicable in determining the actuarial present value of Accumulated Plan Benefits. For funding purposes, the current liability mortality assumption was updated, as mandated by the Internal Revenue Service (IRS). NOTE 4: INVESTMENTS The following summary presents cost and fair value for each of the investment categories. 2015 2014 Cost Fair Value Cost Fair Value Corporate stocks $ 313,208,667 $ 350,423,603 $ 326,563,569 $ 392,466,330 Corporate bonds, asset-backed securities, and other bonds 133,393,523 135,965,121 147, 124,287 155,553,530 U.S. Government bonds, U.S. agency obligations, and mortgage-backed securities 109,717,920 115,204,328 98,776,961 98, 173,761 Short-term investments 68,925,584 68,925,584 61,653,406 61,653,406 Collective trusts 338,397,648 443,699,796 327,912,154 418,150,034 Limited partnerships, 103-12 investment entities, and other commingled funds 253,015, 164 343,814,124 261,596,486 324,971,890 Registered investment companies 354,435,403 331,630,466 394,054,693 362,632,731 Short-term securities under security lending program 11,853,897 9,276,159 17,498,287 14,920,549 $ 1,582,947,806 $ 1, 798,939, 181 $ 1,635, 179,843 $ 1,828,522,231 During the years ended March 31, 2015 and 2014, the Plan's investments, including investments bought, sold and held during the year appreciated (depreciated) in value as follows: Investments - at fair value as determined by quoted market price 2015 2014 Corporate stocks $ 10,333,414 $ 66,423,280 U.S. Government bonds, U.S. agency obligations, and mortgagebacked securities 7,366,627 (1,491,527) Registered investment companies 8,308,429 (18,923,310) Investments - at estimated fair value U.S. Government bonds, U.S. agency obligations, and mortgagebacked securities 2,220,811 (222,046) Registered investment companies 4,494,801 (997,204) Collective trusts 7,588,568 39,852,901 Corporate bonds, asset-backed securities, and other bonds (92,411) 1,307,280 Limited partnerships, 103-12 investment entities, and other commingled funds 29,086,389 31,883,331 Fixed-income future contracts (2,429,774) (856,904) Foreign currency forward contracts (18,262) Short-term securities under security lending program {844} $ 66,876,854 $ 116,956,695 14
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 4: INVESTMENTS - continued The majority of the Plan's investments are held by The Bank of New York Mellon (the Custodian). Other investments are held by the individual investment managers. The investments, at fair value, that represent 5% or more of the Plan's net assets available for benefits as of March 31, 2015 and 2014 are as follows: 2015 2014 EB DV Non-SL Treasury Inflation-Protected Securities Index Fund JPMCB Strategic Property Fund DFA Emerging Markets Value Fund $ 102,923,794 $ 129,056,685 $ 127,139,106 $ 118,259,351 $ 138,202, 100 $ 136,385,026 NOTE 5: FAIR VALUE MEASUREMENTS Accounting principles generally accepted in the United States of America define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, establish a fair value reporting hierarchy and define three broad levels of inputs (the assumptions that market participants would use in pricing the asset or liability) as noted below: Level1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level2 Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level3 Valuation is based on unobservable inputs for the asset or liability. Level 3 assets may include financial instruments whose value is determined using pricing models with internally developed assumptions, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the end of the reporting period. For the year ended March 31, 2015, there were no transfers in or out of levels 1, 2 or 3. A description of the valuation methodology is included in Note 2 and the methodology was not changed during the year ended March 31, 2015. 15
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5: FAIR VALUE MEASUREMENTS - continued As of March 31, 2015 and 2014, assets measured at fair value on a recurring basis are summarized by level within the fair value hierarchy as follows: 2015 Level 1 Level2 Level3 Total Fair Value Corporate stocks $ 350,423,603 $ $ $ 350,423,603 Corporate bonds, asset-backed securities, and other bonds 135,965,121 135,965, 121 U.S. Government bonds, U.S. agency obligations, and mortgagebacked securities 88,518,680 26,685,648 115,204,328 Short-term investments 68,925,584 68,925,584 Collective trusts 274,312,702 169,387,094 443,699, 796 Limited partnerships, 103-12 investment entities, and other commingled funds 165,873,558 177,940,566 343,814, 124 Registered investment companies 215,205,714 116,424,752 331 '630,466 Short-term securities under security lending program 9,276,159 9,276, 159 Cash equivalents 7,850, 165 7,850, 165 $ 654, 147,997 $ 805,313,689 $ 347,327,660 $ 1,806,789,346 2014 Level 1 Level2 Level3 Total Fair Value Corporate stocks $ 392,466,330 $ $ $ 392,466,330 Corporate bonds, asset-backed securities, and other bonds 155,553,530 155,553,530 U.S. Government bonds, U.S. agency obligations, and mortgagebacked securities 67,539,756 30,634,005 98,173,761 Short-term investments 61,653,406 61,653,406 Collective trusts 263,750,794 154,399,240 418, 150,034 Limited partnerships, 103-12 investment entities, and other commingled funds 162,618,043 162,353,847 324,971,890 Registered investment companies 336, 188,815 26,443,916 362,632,731 Short-term securities under security lending program 14,920,549 14,920,549 Cash equivalents 4,865,846 4,865,846 $ 796, 194,901 $ 720,440,089 $ 316,753,087 $ 1,833,388,077 16
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5: FAIR VALUE MEASUREMENTS - continued The table below represents a reconciliation for the years ended March 31, 2015 and 2014 of assets measured at fair value on a recurring basis using Level 3 inputs. Limited Partnerships, 103-12 Investment Entities, and Other Collective Trusts Commingled Funds Total Balance at March 31, 2013 $ 139,264,264 $ 232,813,732 $ 372,077,996 Total gains or losses (realized/unrealized) Unrealized gains (losses) 13,621, 102 5,099,840 18,720,942 Realized gains (losses) 932, 195 13,526,765 14,458,960 Purchases 6,711,228 38,248,736 44,959,964 Sales {6, 129,549} {127,335,226} {133,464, 775} Balance at March 31, 2014 154,399,240 162,353,847 316,753,087 Total gains or losses Unrealized gains 12,171,251 18,212,220 30,383,471 Realized gains 4,215,002 4,215,002 Purchases 2,816,603 25, 191,839 28,008,442 Distributions {32,032,342} {32,032,342} Balance at March 31, 2015 $ 169,387,094 $ 177,940,566 $ 347,327,660 For the years ended March 31, 2015 and 2014, unrealized gains from Level 3 assets are reported in net appreciation in the fair value of investments in the consolidated statements of changes in net assets of the Plan. The following table sets forth a summary of the Level 2 and 3 investments held by the Plan reported at net asset value as of March 31, 2015 and 2014: Collective trusts Unfunded Redemption Fair Value Commitments at Frequency (if Redemption 2015 2014 March 31, 2015 Currently Eligible) Notice Period Domestic equity funds (a) International equity funds (b) Real estate funds (c) Treasury Inflation-Protected Securities (TIPS) (d) $ 116,279,556 $ 98,663,087 55,109,352 36,031,022 169,387,094 154,399,240 102,923,794 129,056,685 $ Daily None Daily None Quarterly 45 days Daily None Limited partnerships, 103-12 investment entities, and other commingled funds International equity funds (b) Real estate funds (c) Infrastructure fund (e) Private equity funds (f) 165,873,558 162,618,043 45,908,652 53, 109,423 10,866,660 8,900,663 121,165,254 100,343, 761 Monthly 10 to 15 days 446,793 (d) (d) 877,800 (e) (e) 171,685,867 (f) (f) Registered investment companies Domestic fixed income fund (g) Domestic equity fund (h) 28,017,426 26,443,916 88,407,326 Monthly Monthly 15 days (h) $ 903,938,672 $ 769,565,840 $ 173,010,460 17
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5: FAIR VALUE MEASUREMENTS - continued (a) (b) As of March 31, 2015 and 2014, this category includes two funds authorized by the Bank of New York Mellon Employee Benefit Collective Investment Fund Plan. The investment strategy of the funds seeks to replicate the returns of the Russell 1000 Growth Index and Russell 1000 Index. The strategy employs a "full replication" methodology, holding each of the stocks that comprise the index with the same weight as the index. Portfolio trading occurs only when there are changes in the composition of the index or to reinvest cash distributed from securities in the portfolio. As of March 31, 2015 and 2014, this category includes a fund authorized by the Bank of New York Mellon Employee Benefit Collective Investment Fund Plan. The investment strategy of the fund seeks to replicate the returns of the Morgan Stanley Capital International EAFE Index (Europe, Australia and Far East). The strategy employs a "full replication" methodology, holding each of the stocks that comprise the index with the same weight as the index. Portfolio trading occurs only when there are changes in the composition of the index or to reinvest cash distributed from securities in the portfolio. As of March 31, 2015 and 2014, the category of limited partnership, 103-12 investment entities, and other commingled funds includes two funds. The first fund's investment objective is to seek capital appreciation by investing primarily in equity securities (and securities convertible into equity securities) issued by both U.S. and non-u.s. issuers. The investment philosophy and strategy of the fund can be broadly characterized as a value approach. The second fund's investment objective seeks capital appreciation through investing in a diversified portfolio of equity securities. Equity securities consist of common stock and securities convertible into common stock, such as warrants, rights, convertible bonds, debentures or convertible preferred stock. Under normal market conditions, the fund will invest at least 75% of its assets in the equity securities of issuers that are located outside the U.S., or which derive a significant portion of their business or profits outside the U.S. (c) As of March 31, 2015 and 2014, the collective trusts include the investments in JPMorgan Strategic Property Fund and JPMorgan Special Situation Property Fund. The JPMorgan Strategic Property Fund, which is a real estate core open-end fund, focuses on attractive office, retail, residential and industrial investments with high-quality physical improvements, excellent locations and competitive positions within their markets. This fund seeks to produce a relatively high level of current income combined with moderate appreciation potential. The JPMorgan Special Situation Property Fund, which is a real estate value-added open-end fund, targets real estate investments that seek to provide a moderate level of current income and high residual property appreciation. Its investments are composed also of mortgage loans on income-producing real estate. For both JPMorgan Strategic Property Fund and JPMorgan Special Situation Property Fund, a written redemption request is required 45 days in advance of the redemption process. To the extent that redemption requests exceed available cash, distributions are pro-rated based on the participant's interest in the fund. All withdrawals will be treated equally whether for fees, benefit payments, plan termination or asset allocation. 18
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5: FAIR VALUE MEASUREMENTS - continued As of March 31, 2015 and 2014, the category of limited partnership, 103-12 investment entities, and other commingled funds includes three real estate funds. The first real estate fund is a closed-end fund of funds, whose investment strategy consists of identifying, acquiring, holding, managing and disposing of investments in real estate private equity funds for income and capital appreciation. The fund invests in a broadly diversified portfolio of real estate funds and is committed to owning interests in 20 real estate investments. Redemptions are not provided for in the limited partnership agreement. Distributions from this fund will be received as underlying investments of the fund are liquidated. It is estimated that the underlying assets of the fund will be liquidated in 10 to 12 years from the final closing date. The second real estate investment fund is a closed-end fund, whose investment strategy consists of the development of commercial properties as well as acquisition/repositioning of existing properties throughout the U.S. that are designed to achieve Leadership in Energy and Environmental Design certification (LEED), or other equivalent standards if LEED is no longer the market standard. Redemptions are not provided for in the limited partnership agreement. Distributions from this fund will be received as underlying investments of the fund are liquidated. It is estimated that the underlying assets of the fund will be liquidated in 7 to 9 years from the final closing date. Final closing date is expected to be in July 2021. The third real estate investment fund invests in a geographically diversified portfolio of real estate investments, principally industrial, office, multi-family and retail properties. There is no interim liquidity for this investment. Distributions from this fund will be received as underlying investments of the fund are liquidated. The term of this partnership shall continue for a period of ten years from the date when at least ninety percent of all capital commitments have been invested, or committed for investment, in real estate investments, but in no event beyond December 31, 2022 and the partnership shall thereafter dissolve unless the term is extended as provided in the limited partnership agreement. (d) (e) The objective of the fund is to track the performance of the Barclays Capital U.S. TIPS Index. The fund is authorized by the Bank of New York Mellon Employee Benefit Collective Investment Plan. The assets of the fund may be invested in securities and a combination of other collective funds that together are designed to track the performance of the Barclays Capital U.S. TIPS Index. As of March 31, 2015 and 2014, this category includes a limited partnership whose primary investment objective is to seek capital appreciation and current income by acquiring, holding, financing, refinancing and disposing of infrastructure investments and related assets. Redemptions are not provided for in the limited partnership agreement. Distributions from this fund will be received as underlying investments of the fund are liquidated. This limited partnership is a closed-end fund which will terminate on July 10, 2018, unless earlier terminated or extended for up to a maximum of two successive one-year periods, as defined in the limited partnership agreement. 19
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 5: FAIR VALUE MEASUREMENTS - continued (f) As of March 31, 2015 and 2014, this fund seeks to invest in underlying private equity funds ranging in size from $200 million to $2.5 billion. The fund prefers to invest the majority of capital with funds of less than $1 billion. It targets domestic middle-market buyout funds, special situations funds, and growth equity funds. The fund will not invest in any venture capital funds. The fund commenced operations on May 20, 2011 and will continue in existence until the earlier of i) the expiration of its term January 27, 2020, or if later, one year after the date by which the fund's assets have been liquidated and its obligations terminated; and ii) any one of the reasons for dissolution described in the partnership agreement. Limited partners are not typically allowed to withdraw from the fund, but retirement plans have the right to withdraw from the fund, in accordance with the procedures set forth in the partnership agreement. As of March 31, 2015 and 2014, this category included investments managed by an advisor to select private equity funds with the goal of building a program to reach and maintain a target investment allocation of 18% to this asset class. This account will be committed over a threeyear period at an annual commitment pace of $130 million per year. The fund has a buyout focus with an overweight to small-mid capitalization funds and opportunistically targets international general partners that are concentrated on North America. Core manager relationships are identified with average fund commitments between $10-$20 million with 15-25 partnerships. There are no redemption rights for the underlying partnerships as the terms of the liquidation are set upon a set termination date which can be extended per the conditions outlined in the limited partnership agreements. (g) (h) This category consists of the AFL-CIO Housing Investment Trust, which is an open-end mutual fund that invests in high grade, public- and private-market mortgage bonds. Its portfolio combines long-duration, agency-insured multifamily mortgage-backed securities (MBS) with short-duration, single-family MBS and intermediate-term agency securities. This category consists of a fund established under a collective investment trust and commencing operations on July 21, 2014. The objective of the fund is to maximize capital appreciation by investing primarily in equity securities of emerging markets companies. The fund invests in equity certificates, a type of derivative instrument, which allow participation in the appreciation (depreciation) of the underlying security without actually owning it. Withdrawals are permitted by providing written notice to trustee pursuant to trust agreement. NOTE 6: SECURITIES LENDING The Plan participates in a securities lending program through a corporate trustee whereby a portion of its investment portfolio is loaned to approved borrowers. The corporate trustee receives collateral, generally consisting of cash, government securities and letters of credit, from the borrowers on behalf of the Plan in connection with such loans. The corporate trustee invests the cash collateral in short-term investments during the term of the loan. The value of the collateral held is monitored daily by the corporate trustee to ensure the value of such collateral is at least 102% of the daily current fair value of the total securities loaned to each borrower. The Plan continues to earn income on portfolio securities loaned, and receives compensation for lending its securities in the form of income earned by the corporate trustee, a portion of which is distributed to the Plan after deducting brokers' rebates and corporate trustee fees. The Plan pays fees to the corporate trustee for administering the securities lending program. Income earned on the collateral is included in interest and dividend income in the accompanying consolidated statements of changes in net assets available for benefits. The Plan aggregates transfers of financial assets based on the type of financial assets transferred. 20
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 6: SECURITIES LENDING - continued The fair value of securities loaned to borrowers, which is included in investments on the consolidated statements of net assets available for benefits, and the fair value of the invested collateral received from such borrowers and held by the corporate trustee as of March 31, 2015 and 2014 are as follows: 2015 2014 Corporate stocks $ 7,520,664 $ 12,548,619 Exchange4radedfunds 1,321,351 Corporate bonds 4,030,979 3,225,668 $ 11,551,643 $ 17,095,638 At March 31, 2015 and 2014, collateral received for loaned securities at fair value was as follows: Cash collateral received and reinvested under security lending program $ 9,276,159 $ 14,920,549 ========== The Plan pays fees to the corporate trustee for administering the securities lending program. Income earned on the collateral of $215,937 and $281,616 for the years ended March 31, 2015 and 2014, respectively, is included in interest and dividend income in the accompanying consolidated statements of changes in net assets available for benefits, while rebate fees accrued to borrowers and the fees paid to the corporate trustee are reported separately as security lending fees. The Plan bears the risk of loss with respect to the unfavorable change in fair value of the invested cash collateral. The risk that income from cash collateral supporting any loan will be insufficient to pay accrued rebate fees owed to borrowers is shared ratably between the Plan and the corporate trustee. As of March 31, 2008, approximately $5,000,000 of the cash collateral received from borrowers of Plan securities was invested in short-term commercial paper issued by Lehman Brothers Holdings Inc. (Lehman Brothers). On September 15, 2008, Lehman Brothers filed for bankruptcy protection. In connection with this potential loss, a support agreement was reached between the Plan and the corporate trustee. Per this agreement, the corporate trustee agreed to share 25% of the loss. In September 2012, the corporate trustee made the final disposition of the short-term commercial paper issued by Lehman Brothers. The total amount of recovery for the Plan was $2,391,695. This amount includes the corporate trustee's share of the loss of $869,435 which represents the 25% share as per the support agreement between the Plan and the corporate trustee. As of March 31, 2015 and 2014, the securities lending portfolio carries an undistributed payable of $2,577,738 which represents the obligation for the Lehman Brothers loss. The corporate trustee has not yet required the Plan to pay for this loss. NOTE 7: DERIVATIVE FINANCIAL INSTRUMENTS The Plan is exposed to certain risks relating to its ongoing investment operations. The primary risks managed by using derivative instruments are foreign exchange risk and interest rate risk. Forward foreign exchange contracts (or foreign currency forward contracts) are used to protect the Plan against the exchange risk associated with the Plan's investments denominated in foreign currency because the Plan is able to secure an exchange rate in the present for settlement at a future date. The terms of these contracts generally do not exceed one year. Risks in forward foreign exchange contracts arise from the possible inability of counterparties to meet the contract's terms and from movements in currency values. 21
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 7: DERIVATIVE FINANCIAL INSTRUMENTS - continued The Plan reflects the fair value of the net foreign currency forward contracts as an asset or as a liability in the Plan's consolidated financial statements. The change in value of the foreign currency forward contracts is recorded as an unrealized gain or loss which is included in the net appreciation (depreciation) in the fair value of investments in the Plan's consolidated statements of changes in net assets available for benefits. When the foreign currency forward contract is closed, the Plan transfers the unrealized gain or loss to a realized gain or loss equal to the change in the value of the foreign currency forward contract when it was opened and the value at the time it was closed or offset. The realized gains and losses from foreign currency forward contracts are included in the net appreciation in the fair value of investments in the Plan's consolidated statements of changes in net assets available for benefits. As of March 31, 2015 and 2014, the Plan did not have any outstanding foreign currency forward contracts. The Plan enters into interest rate contracts such as fixed-income futures contracts in the normal course of its investment activities to reduce the interest rate risk associated with its fixed-income investments, as substitutes for the underlying fixed income securities, and as a duration management tool to enhance portfolio returns. Treasury futures are used to implement yield curve strategies. Upon entering into a futures contract, the Plan is required to deposit either cash or securities in an amount equal to a certain percentage of the nominal value of the contract as specified by the exchange. Subsequent payments are then made or received by the Plan, depending on daily fluctuation in the value of the underlying contracts. Such receipts or payments are included in the net appreciation in fair value of investments in the consolidated statements of changes in net assets available for benefits. As of both March 31, 2015 and 2014, the fair value of futures contracts in the consolidated statements of net assets available for benefits is ($328,006) and ($170,914), respectively. While these contracts involve elements of market risk in excess of amounts recognized in the consolidated statements of net assets available for benefits, the investment manager employs risk controls at the portfolio and individual security levels by which the duration impact of the futures contracts is evaluated and monitored to insure that duration bands for the portfolio of fixed income securities are within the investment policy guidelines. The risk of counterparty nonperformance associated with the use of fixed-income futures is considered to be modest as performance is assured by the futures exchanges, which provide multiple layers of protection, such as the collection of variation margin on a daily basis and the use of standardized contracts to facilitate liquidity. U.S. Treasury bonds owned and included in the investments of the Plan in the consolidated statements of net assets available for benefits, with a fair value of $581,261 and $397,095 at March 31, 2015 and 2014, respectively, were held by the Plan's brokers as collateral on fixed-income futures contracts. The notional amount of this collateral at March 31, 2015 and 2014 is $520,000 and $360,000, respectively. At March 31, 2015 and 2014, the Plan had futures contracts to purchase and sell as follows: Maturity Date Notional Amount 2015 2014 Future U.S. treasury Note 2 Year Future U.S. treasury Note 5 Year Future U.S. treasury Note 10 Year Future U.S. treasury Long Bond Future U.S. treasury Ultra T-Bond June 30, 2015 June 30, 2015 June 30, 2015 June 30, 2015 June 30, 2015 $ (32,873,438) $ 10,097,719 9,023,438 (6,882, 750) (15, 118,875) (21, 100,000) 6,900,000 (600,000) (8,800,000) (7,000,000) $ (35, 753,906) $ (30,600,000) 22
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 7: DERIVATIVE FINANCIAL INSTRUMENTS - continued Notional amounts do not quantify risk or represent assets or liabilities of the Plan, but are used in the calculation of cash settlements under the contracts. For the years ended March 31, 2015 and 2014, the recognized gain (loss) in net appreciation in fair value of investments of derivative not designated as hedging instruments under ASC 815-20 on the Plan's consolidated statements of net assets available for benefits was as follows: Fixed-income future contracts Foreign currency forward contracts 2015 $ (2,429, 77 4) $ 2014 (856,904) (18,262) NOTE 8: EQUIPMENT, FURNITURE AND LEASEHOLD IMPROVEMENTS $ (2,429,774) =$ ==(8=7=5=, 1=66=) At March 31, 2015 and 2014, equipment, furniture and leasehold improvements consisted of the following: 2015 2014 Computer software $ 14,329,912 $ 14, 196,856 Computer equipment 3,377,961 3, 198,991 Office furniture and equipment 1,447, 123 1,440,421 Leasehold improvements 1,661,879 1,661,879 20,816,875 20,498, 147 Accumulated depreciation and amortization {19, 199,699} {18, 135,952} $ 1,617, 176 $ 2,362, 195 Depreciation and amortization expense for the years ended March 31, 2015 and 2014 amounted to $1,063,748 and $1,329,362, respectively. NOTE 9: PARTY-IN-INTEREST TRANSACTIONS Certain Plan investments are managed by the custodian. Any purchases and sales of these investments are made at fair value and qualify as party-in-interest transactions. Such transactions, while considered party-in-interest transactions under ERISA regulations, are permitted under the provisions of the Plan and are specifically exempt from the prohibition of party-in-interest transactions under ERISA. NOTE 10: RETIREMENT PLAN The Plan contributes, on behalf of Plan employees, to a multi-employer defined benefit pension plan. The risks of participating in this multi-employer plan are different from single-employer plans in the following aspects: A B C Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of the participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the Plan may be borne by the remaining participating employers. If the Plan chooses to stop participating in its multi-employer plan, the Plan may be required to pay the plan an amount based on the underfunded status of the plan, referred to as withdrawal liability. 23
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 10: RETIREMENT PLAN - continued The Plan's participation in the multiemployer plan for the years ended March 31, 2015 and 2014 is outlined in the table below: The "EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three digit plan number, if applicable. The most recent Pension Protection Act (PPA) zone status available is for the year beginning April 1, 2015. Among other factors, plans in the red zone are generally less than 65 percent funded or projected to have a deficit in their funding standard account within 4 years, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The "RP Implemented" column indicates plans for which a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date of the participation agreement to which plan contributions are subject. Pension Protection Expiration Date EIN/Pension Act Zone Status RP Contributions Surcharge of Participation Pension Plan Plan Number 2015 2014 lm~lemented 2015 2014 lm~osed Agreement American Federation of Musicians and Employers' Pension 51-6120204- Plan 001 Red Red Yes $ 384,899 $ 402,869 None None NOTE 11: TAX STATUS The Plan is a qualified plan under Section 401 (a) of the Internal Revenue Code (IRC), and its trust is exempt from Federal income taxes under Section 501 (a). However, the Plan is subject to income tax on unrelated business income. The Plan obtained its latest determination letter dated June 12, 2012, in which the Internal Revenue Service states that the plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The plan has been amended, and a new determination requested, since receiving the determination letter. The Plan received acknowledgement from the IRS of their receipt of the restated document on March 11, 2015. The plan administrator believes that the plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. Management has analyzed the tax positions taken by the Plan, and has concluded that as of March 31, 2015, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the consolidated financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any tax periods. Management believes the Plan is no longer subject to income tax examinations for years prior to the year ended March 31, 2012. NOTE 12: RISKS AND UNCERTAINTIES The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits. The Plan contributions are made and the actuarial present value of accumulated plan benefits is reported based on certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which are subject to change. Due to uncertainties inherent in the estimation and assumption process, it is at least reasonably possible that changes in these estimates and assumptions in the near term could materially affect the amounts reported and disclosed in the consolidated financial statements. 24
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 13: PRIORITIES UPON TERMINATION It is the intent of the Trustees to continue the Plan in full force and effect; however, to safeguard against any unforeseen contingencies, the right to discontinue the Plan is reserved to the Trustees. In the event the Plan terminates, the net assets of the Plan will be allocated, as prescribed by ERISA and its related regulations. Generally, the benefits upon termination would be provided in the following order: (a) (b) (c) (d) Annuity benefits that former participants or their beneficiaries have been receiving for at least three years, or that participants eligible to retire for that three-year period would have been receiving had they retired with benefits in the normal form of annuity under the Plan will be limited to the lowest benefit that was payable (or would have been payable) during those three years. The amount is further limited to the lowest benefit that would be payable under the Plan provisions in effect at any time during the five years preceding Plan termination. All other benefits (if any) of the individuals under the Plan guaranteed under Title IV of ERISA. All other vested benefits under the Plan. All nonvested benefits. In the event of termination, the Trustees shall first satisfy the obligations of the Plan. Whether all participants receive their benefits should the Plan terminate at some future time will depend on the sufficiency, at the time, of the Plan's net assets to provide for accumulated benefit obligations and may depend on the financial condition of the Plan and the level of benefits guaranteed by the Pension Benefit Guaranty Corporation (PBGC). Certain benefits under the Plan are insured by the PBGC should the Plan terminate. Generally, the PBGC guarantees most vested normal retirement, early retirement, and certain disability and survivors' pensions. However, the PBGC does not guarantee all types of benefits, and the amount of benefit protection is subject to certain limitations. The PBGC guarantees vested benefits at the level in effect on the date of Plan termination. However, if benefits have been increased within the five years before Plan termination, the whole amount of the Plan's vested benefits or the benefit increase may not be guaranteed. In addition, there is a ceiling on the amount of monthly benefit that the PBGC guarantees, which is adjusted periodically. NOTE 14: COMMITMENTS On May 8, 1998, Leasing entered into a fifteen-year lease agreement for office premises located in New York City. The Plan had guaranteed all of Leasing's obligations under the lease. On March 3, 2005, the lease was amended to provide for additional office space. Effective June 1, 2013, the lease was terminated after a surrender agreement was reached with the landlord. The Plan paid a termination fee of $389,265 which represents 50% of the fixed and escalation rent that would have been paid from June 1, 2013 to October 31, 2013. There are no future minimum payments required on this lease. On December 10, 2012, LLC entered into a new fifteen-year lease agreement for new office premises located in New York City. The lease and rent commencement dates were May 1, 2013 and November 1, 2013, respectively. The new lease included a rent abatement of six months. The Plan has guaranteed all of the LLC's obligations under the lease. In accordance with ASC 840-20, Leases, the rental payments are recognized on a straight-line basis over the term of the lease. The difference between the actual rent paid and the expense charged is an increase to deferred rent payable, which is a component of accrued expenses and other liabilities reflected in the consolidated statements of net assets available for benefits at March 31, 2015 and 2014. 25
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 14: COMMITMENTS - continued The minimum annual rental commitments (exclusive of escalation clauses for real estate taxes and building operating expenses) are summarized as follows: 2016 $ 1,023,280 2017 1,023,280 2018 1,023,280 2019 1,140,531 2020 1, 151, 190 Thereafter 10,584,553 $ 15,946, 114 The Plan's rent expense was $1, 164,891 and $1,642,466 for the years ended March 31, 2015 and 2014, respectively. 26
BoNDBEEBE ACCOUNTANTS & ADVISORS REPORT OF INDEPENDENT AUDITORS ON SUPPLEMENTAL INFORMATION REQUIRED BY THE DEPARTMENT OF LABOR'S RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 To the Trustees and Participants American Federation of Musicians and Employers' Pension Fund and Subsidiary We have audited the consolidated financial statements of American Federation of Musicians and Employers' Pension Fund and Subsidiary as of and for the year ended March 31, 2015, and our report thereon dated December 18, 2015 which expressed an unqualified opinion on those financial statements, appears on pages 1-2. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedules of assets (held at end of year) and reportable transactions are presented for purposes of additional analysis and are not a required part of the financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 197 4. Such information is the responsibility of the Plan's management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. A Professional Corporation Bethesda, MD December 18, 2015 A PROFESSIONAL CORPORATION WITH OFFICES IN BETHESDA, MD AND ALEXANDRIA, VA 27
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value Interest Bearing Cash BANK OF NEW YORK GS MONEY MARKET BANK OF NEW YORK CUSTODIAL ACCOUNT Money Market Cash VAR VAR 7,825,072 $ 7,825,072 318,390 3_18-',_39_0_ 8,143,462 $ 7,825,072 318,390 8,143,462 U.S. Government Securities COMMIT TO PUR FNMA SF MTG COMMIT TO PUR FNMA SF MTG FHLMC POOL #C0-1376 FHLMC POOL #C0-1416 FHLMC POOL #C0-1437 FHLMC POOL #G0-1705 FHLMC POOL #G0-2032 FHLMC POOL #G0-6234 FHLMC POOL #G0-6950 FHLMC POOL #G0-6992 FINANCING CORP STRIP FINANCING CORP STRIP FINANCING CORP STRIP PO FINANCING CORP STRIP PO FNMA POOL #0254548 FNMA POOL #0545996 FNMA POOL #0667019 FNMA POOL #0687082 FNMA POOL #0725206 FNMA POOL #0725773 FNMA POOL #0865213 FNMA POOL #0888231 FNMA POOL#OAH4313 FNMA POOL #OAL 1544 FNMA POOL #OAL2914 FNMA POOL #OAL3170 FNMA POOL #OAL3760 FNMA POOL #OC50435 RESOLUTION FOG CORP PRIN STRIP RESOLUTION FOG CORP PRIN STRIP U S TREASURY BOND U S TREASURY BOND U S TREASURY BOND U S TREASURY BOND U S TREASURY BOND U S TREASURY BOND U S TREASURY BOND U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE U S TREASURY NOTE us 1 OYR TREAS NTS FUTURE (CBn us 2YR TREAS NTS FUTURE (CBn us 5YR TREAS NTS FUTURE (CBn us TREAS BO FUTURE (CBn us ULTRA BOND (CBn 4.500% 4.000% 7.000% 7.000% 7.000% 5.500% 7.000% 5.500% 5.500% 5.500% 9.800% 0.000% 0.000% 0.000% 5.500% 7.000% 5.500% 5.500% 5.500% 5.500% 7.000% 6.500% 4.500% 5.500% 5.500% 5.500% 5.500% 7.000% 0.000% 0.000% 3.125% 2.750% 2.750% 2.875% 3.750% 3.625% 3.000% 1.750% 1.500% 0.875% 1.000% 2.875% 2.125% 0.625% 0.625% 0.625% 0.750% 0.125% 1.750% 0.250% 0.000% 0.000% 0.000% 0.000% 0.000% 5/1/2045 5/1/2045 7/1/2032 9/1/2032 10/1/2032 6/1/2034 11/1/2032 11/1/2035 8/1/2038 7/1/2036 11/30/2017 11/30/2017 12/27/2018 9/26/2019 12/1/2032 8/1/2032 11/1/2032 1/1/2018 2/1/2034 9/1/2034 11/1/2029 2/1/2018 2/1/2041 8/1/2037 1/1/2038 3/1/2040 2/1/2038 8/1/2032 10/15/2019 7/15/2020 2/15/2042 8/15/2042 11/15/2042 5/15/2043 11/15/2043 2/15/2044 11/15/2044 9/30/2019 10/31/2019 11/15/2017 12/15/2017 3/31/2018 8/15/2021 8/31/2017 9/30/2017 11/30/2017 3/31/2018 4/30/2015 5/15/2023 5/31/2015 6/19/2015 6/30/2015 6/30/2015 6/19/2015 6/19/2015 5,595,000 7,335,000 48,039 141,609 129,278 526,768 246,477 132,733 104,184 76,509 475,000 795,000 1,430,000 825,000 371,309 105,392 507,458 26,137 2,313,923 135,387 100,982 63,100 380,581 50,055 219,974 214,415 410,050 113,617 685,000 1,465,000 1,450,000 2,225,000 4,200,000 8,185,000 4,050,000 3,650,000 4,110,000 15,595,000 945,000 5,140,000 615,000 9,585,000 1,995,000 8,965,000 1,615,000 2,510,000 4,770,000 475,000 4,445,000 280,000 70 (150) 84 (42) 6,059,210 7,795,459 51,049 150,548 137,399 519,607 255,779 146,131 114,716 84,280 637,435 494,458 1,132,464 508,687 368,756 110,102 503,731 26,113 2,546,037 149,095 105,431 64,677 412,812 55,061 243,277 235,320 449,517 120,198 611,380 1,261,724 1,554,842 2,195,485 3,697,284 6,951,670 4,177,682 3,953,822 4,409,383 15,715,024 952,604 5,147,759 613,487 10,119,217 2,051,662 8,888,257 1,603,275 2,494,366 4,728,150 475,074 4,358,269 280,155 (89) 109,717,920 6,088,479 7,830,113 58,936 174,127 159,666 598,450 295,127 149,977 117,540 86,433 583,381 769,799 1,361,689 767,324 420,701 125,993 574,686 27,155 2,620,841 153,386 115,539 65,338 417,262 56,702 249,164 242,852 464,090 138,580 636,838 1,335,479 1,620,825 2,315,914 4,365,060 8,720,872 5,059,341 4,462,965 4,503,327 15,892,241 952,456 5,153,672 618,315 10,144,381 2,053,454 8,948,863 1,610,833 2,499,408 4,748,774 474,924 4,421,041 280,021 139,914 (96,994) 91,491 (121,893) (340,524) 115,204,328 Corporate Debt Instruments - Preferred and Other 24 HOUR HOLDINGS Ill LLC 144A ABB TREASURY CENTER USA I 144A 8.000% 2.500% 6/1/2022 6/15/2016 415,000 200,000 412,938 198,736 352,750 203,990
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (a) (b) Identity of issuer, borrower, or similar party Description Rate of Maturity Par/Maturity Interest Date Value (d) Cost (e) Current Value ABBVIE INC ABBVIE INC ACI WORLDWIDE INC 144A AEP TEXAS CENTRAL TRANSIT 1 AS AEP TEXAS CENTRAL TRANSIT A A3 AEP TEXAS CENTRAL TRANSITION F AETNA INC AIM AVIATION FINANC 1A B1 144A AIRCASTLE LTD AIRCASTLE LTD ALCATEL-LUCENT USA INC ALCOA INC ALCOA INC ALLSTATE CORP/THE ALLY AUTO RECEIVABLES TRU 1 A2 ALLY AUTO RECEIVABLES TRU 1 A3 ALLY FINANCIAL INC ALLY MASTER OWNER TRUST 4 A2 ALLY MASTER OWNER TRUST 5 A ALLY MASTER OWNER TRUST 5 A2 ALTERNATIVE LOAN TRUST 14 2A1 ALTICE FINANCING SA 144A AL TICE SA 144A AL TICE SA 144A AMAZON.COM INC AMAZON.COM INC AMERICA MOVIL SAB DE CV AMERICA MOVIL SAB DE CV AMERICAN ENERGY-PERMIAN B 144A AMERICAN EXPRESS CREDIT AC 2 A AMERICAN EXPRESS CREDIT CORP AMERICAN HOME MORTGAGE I 2 4A1 AMERICAN INTERNATIONAL GROUP I AMGEN INC AMGEN INC AMSURGCORP ANTERO RESOURCES CORP APPLE INC ARCELORMITT AL ARCELORMITT AL AT&T INC ATRIUM WINDOWS & DOORS IN 144A BAE SYSTEMS PLC 144A BANC OF AMERICA MORTGAGE A 2A 1 BANCO SANT ANDER BRASIL SA 144A BANK OF AMERICA CORP BANK OF AMERICA CORP BANK OF AMERICA CORP BANK OF AMERICA CORP BANK OF AMERICA NA BANK OF NEW YORK MELLON CORP!T BANK OF NEW YORK MELLON CORP!T BAYER US FINANCE LLC 144A BAYTEX ENERGY CORP 144A BAYTEX ENERGY CORP 144A BECTON DICKINSON AND CO BERKSHIRE HATHAWAY ENERGY CO BERKSHIRE HATHAWAY ENERGY CO BG ENERGY CAPITAL PLC 144A BHP BILLITON FINANCE USA LTD BIOSCRIP INC 144A BLACKBOARDINC144A BMC SOFTWARE FINANCE INC 144A BONANZA CREEK ENERGY INC BONANZA CREEK ENERGY INC BRASKEM FINANCE LTD BRF SA 144A 2.900% 4.400% 6.375% 6.250% 5.090% 5.170% 2.200% STEPO 5.125% 5.500% 6.450% 5.900% 6.750% 3.150% 0.480% 0.630% 4.625% 1.430% 1.540% 1.600% VAR RT 6.625% 7.750% 7.625% 3.800% 4.950% 8.460% 6.450% 7.125% 0.680% 2.250% VAR RT VAR RT 5.650% 5.150% 5.625% 5.125% 3.850% VAR RT VAR RT 4.300% 7.750% 4.750% VAR RT 8.000% 5.650% 6.500% 3.300% 4.000% 6.100% 2.200% 3.400% 1.500% 5.125% 5.625% 2.675% 6.125% 6.500% 4.000% 3.850% 8.875% 7.750% 8.125% 6.750% 5.750% 6.450% 7.750% 11/6/2022 11/6/2042 8/15/2020 1/15/2017 7/1/2017 1/1/2020 3/15/2019 2/15/2040 3/15/2021 2/15/2022 3/15/2029 2/1/2027 1/15/2028 6/15/2023 2/15/2017 5/15/2017 3/30/2025 6/17/2019 9/15/2019 10/15/2019 5/25/2035 2/15/2023 5/15/2022 2/15/2025 12/5/2024 12/5/2044 12/18/2036 12/5/2022 11/1/2020 3/15/2018 8/15/2019 9/25/2045 5/15/2068 6/15/2042 11115/2041 7/15/2022 12/1/2022 5/4/2043 10/15/2039 3/1/2041 12/15/2042 5/1/2019 10/11/2021 2/25/2035 3/18/2016 5/1/2018 8/1/2016 1/11/2023 1/22/2025 6/15/2017 3/4/2019 5/15/2024 10/6/2017 6/1/2021 6/1/2024 12/15/2019 411/2036 9/15/2037 10/15/2021 9/30/2023 2/15/2021 11/15/2019 7/15/2021 4/15/2021 21112023 2/3/2024 5/22/2018 165,000 430,000 145,000 247,265 6,165 430,000 180,000 407,560 385,000 35,000 1,315,000 290,000 80,000 190,000 334,636 154,393 185,000 790,000 560,000 730,000 295,493 200,000 200,000 200,000 470,000 200,000 12,200,000 4,000,000 90,000 420,000 615,000 171,208 45,000 410,000 765,000 225,000 215,000 410,000 260,000 385,000 558,000 560,000 190,000 36,666 300,000 555,000 155,000 455,000 40,000 615,000 355,000 1,075,000 730,000 60,000 280,000 305,000 60,000 475,000 995,000 275,000 155,000 347,000 285,000 115,000 140,000 200,000 1,200,000 161,420 439,812 145,000 256,866 6,341 461,813 179,820 407,560 385,000 35,000 1,111,566 284,756 84,690 189,626 334,608 154,538 181,374 789,804 559,840 729,986 185,913 200,000 200,000 200,000 468,299 212,246 1,131,464 309,133 67,550 420,903 614,625 139,707 46,916 435,702 778,254 225,000 204,050 389,779 253,403 360,312 482,156 558,617 189,806 32,014 152,849 564,506 154,611 450,208 39,759 633,536 354,606 1,074,452 729,511 60,000 281,502 305,000 70,003 470,948 1,029,943 274,662 155,785 347,000 291,063 104,175 114,775 200,000 591,745 163,673 442,651 151,525 255,210 6,235 456,974 181,894 411,350 402,325 37,231 1,328,150 319,345 91,973 196,253 334,409 154,469 182,225 792,417 562,072 733,322 242,948 206,000 203,376 200,376 493,965 218,194 797,505 253,088 68,625 420,332 623,911 164,884 63,812 502,439 881,096 230,063 206,400 416,474 273,000 400,400 533,727 470,400 211,409 35,529 88,233 615,645 165,424 460,933 40,324 673,745 360,673 1,125,310 734,694 55,050 256,200 311,533 78,211 643,050 1,037,009 293,791 139,306 333,120 260,775 111,838 128,800 193,000 306,937
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (a) (b) Identity of issuer, borrower, or similar party Rate of Maturity Par/Maturity Description Interest Date Value (d) Cost (e) Current Value BROCADE COMMUNICATIONS SY 144A. BUILDERS FIRSTSOURCE INC 144A BURLINGTON NORTHERN SANTA FE L CALIFOR RESOURCES CORP 144A CALIFOR RESOURCES CORP 144A CALIFOR RESOURCES CORP 144A CALPINE CORP CALPINE CORP 144A CATAMARAN CORP CATERPILLAR FINANCIAL SERVICES CCO HOLDINGS LLC I CCO HOLDING CCO HOLDINGS LLC I CCO HOLDING CCOH SAFARI LLC CCOH SAFARI LLC CENTURYLINK INC CENTURYLINK INC CHASE ISSUANCE TRUST A3 A3 CHASE ISSUANCE TRUST A5 A CHASE ISSUANCE TRUST A5 A5 CHASE ISSUANCE TRUST A8 A8 CHESAPEAKE ENERGY CORP CHESAPEAKE ENERGY CORP CHESAPEAKE ENERGY CORP CHESAPEAKE ENERGY CORP CIENA CORP 144A CIMAREX ENERGY CO CINCINNATI BELL TELEPHONE COL CIT GROUP INC CIT GROUP INC CIT GROUP INC CITIBANK CREDIT CARD ISS A 1 A 1 CITIBANK CREDIT CARD ISS A9 A9 CITIGROUP INC CITIGROUP INC CITIGROUP MORTGAGE LOAN 11 A2A CLEAR CHANNEL WORLDWIDE HOLDIN CLEAR CHANNEL WORLDWIDE HOLDIN CNH EQUIPMENT TRUST 2013- C A2 CNH EQUIPMENT TRUST 2014- A A2 COMCAST CORP COMMSCOPE INC 144A CONAGRA FOODS INC CONAGRA FOODS INC CONCHO RESOURCES INC CONCHO RESOURCES INC CONOCOPHILLIPS CO CONSOL ENERGY INC CONSOLIDATED EDISON CO OF NEW CONTINENT AL RESOURCES INC/OK CONTINENT AL RESOURCES INC/OK CORP GEO SAB DE CV 144A CPG MERGER SUB LLC 144A DAIMLER FINANCE NORTH AME 144A DAIMLER FINANCE NORTH AME 144A DEUTSCHE BANK AG/LONDON DEUTSCHE TELEKOM INTERNAT 144A DEVON ENERGY CORP DEVON ENERGY CORP DILLARD'S INC DIRECTV HOLDINGS LLC I DIRECTV DISH DBS CORP DISH DBS CORP DOMINION RESOURCES INCNA DOMINION RESOURCES INCNA DOW CHEMICAL CO/THE OS SERVICES OF AMERICA IN 144A DUKE ENERGY FLORIDA INC 1.375% 7.625% 4.900% 5.000% 5.500% 6.000% 5.375% 6.000% 4.750% 2.750% 5.250% 5.125% 5.500% 5.750% 6.875% 5.625% 0.790% 0.470% 0.590% 0.540% 2.500% 6.625% 5.375% 4.875% 3.750% 4.375% 6.300% 5.000% 5.000% 3.875% 0.550% 5.100% 6.875% 2.500% VAR RT 6.500% 6.500% 0.630% 0.490% 6.500% 5.000% 1.900% 3.200% 5.500% 5.500% 4.150% 5.875% 4.450% 4.500% 3.800% 8.875% 8.000% 2.375% 1.125% 1.350% 2.250% 5.600% 3.250% 7.750% 6.000% 5.000% 5.125% 1.950% 2.500% 3.000% 1000.000% 3.850% 1/1/2020 6/1/2021 4/1/2044 1/15/2020 9/15/2021 11/15/2024 1/15/2023 1/15/2022 3/15/2021 8/20/2021 9/30/2022 2/15/2023 12/1/2022 12/1/2024 1/15/2028 4/1/2020 6/15/2017 5/15/2017 8/15/2017 10/16/2017 5/15/2037 8/15/2020 6/15/2021 4/15/2022 10/15/2018 6/1/2024 12/1/2028 8/15/2022 8/1/2023 2/19/2019 10/10/2017 11/20/2017 3/5/2038 9/26/2018 10/25/2035 11/15/2022 11/15/2022 1/17/2017 6/15/2017 1/15/2017 6/15/2021 1/25/2018 1/25/2023 10/1/2022 4/1/2023 11/15/2034 4/15/2022 3/15/2044 4/15/2023 6/1/2024 3/27/2022 10/1/2021 8/1/2018 3/10/2017 5/30/2017 3/6/2017 7/15/2041 5/15/2022 5/15/2027 8/15/2040 3/15/2023 5/1/2020 8/15/2016 12/1/2019 11/15/2022 9/1/2021 11/15/2042 45,000 265,000 495,000 45,000 300,000 200,000 310,000 95,000 165,000 370,000 110,000 345,000 65,000 65,000 285,000 35,000 325,000 295,000 455,000 620,000 205,000 15,000 15,000 385,000 585,000 200,000 150,000 40,000 135,000 230,000 925,000 430,000 230,000 870,000 93,513 125,000 345,000 59,461 71,725 285,000 215,000 270,000 109,000 70,000 70,000 425,000 325,000 470,000 90,000 250,000 600,000 283,000 395,000 590,000 460,000 455,000 80,000 365,000 375,000 530,000 560,000 265,000 65,000 410,000 720,000 425,000 245,000 45,000 263,388 535,590 45,000 297,600 182,381 310,000 94,233 165,000 369,253 102,550 318,725 65,000 65,000 223,725 35,000 326,155 295,150 455,480 620,073 171,484 13,688 14,325 373,763 648,727 189,163 113,100 37,838 134,861 230,000 925,289 452,877 251,771 866,189 74,811 123,750 345,000 59,461 71,722 336,770 215,000 270,000 104,141 67,400 67,588 424,826 330,277 469,605 85,893 224,957 600,000 287,463 394,020 589,670 459,839 452,438 89,334 362,839 330,938 548,987 541,681 266,238 64,984 409,385 707,515 424,305 244,223 47,335 266,988 565,087 40,613 266,160 175,500 310,000 101,650 183,356 380,338 112,475 348,450 66,463 66,950 296,400 36,750 325,228 295,018 455,223 620,006 196,417 15,488 14,550 360,938 716,994 198,500 142,500 41,050 138,375 227,700 925,028 442,160 318,341 887,052 92,638 129,688 363,113 59,468 71,694 312,562 214,731 270,338 107,299 70,525 70,518 451,724 294,125 522,602 87,348 230,435 12,060 287,245 405,065 590,466 459,568 462,903 93,158 368,716 419,063 600,829 544,488 266,988 65,772 416,667 726,206 499,375 254,413
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (a) (b) Identity of issuer, borrower, or similar party Description Rate of Maturity Par/Maturity Interest Date Value (d) Cost (e) Current Value DUKE ENERGY PROGRESS INC DYNEGY FINANCE I INC I DY 144A EASTMAN CHEMICAL CO EDP FINANCE BV 144A EMO FINANCE LLC 144A EMO FINANCE LLC 144A EMECO PTY LTD 144A EMERGENT BIOSOLUTIONS INC ENCANACORP ENCANACORP ENEL SPA 144A ENTEGRIS INC 144A EQUINIXINC EQUINIXINC ESSAR STEEL ALGOMA INC 144A EUROPEAN BANK FOR RECONSTRUCTI FAMILY TREE ESCROW LLC 144A FIRST FRANKLIN MORTGAG FF10 A4 FIRST QUANTUM MINERALS LT 144A FORD CREDIT AUTO OWNE 1 A 144A FORD CREDIT AUTO OWNE 1A144A FORD CREDIT AUTO OWNER TR C A3 FORD CREDIT AUTO OWNER TR D A2 FORD CREDIT FLOORPLAN MAS 4 A1 FORD CREDIT FLOORPLAN MAS 5 A1 FORD MOTOR CREDIT CO LLC FORD MOTOR CREDIT CO LLC FREEPORT-MCMORAN INC FRESENIUS MEDICAL CARE US 144A FRESENIUS MEDICAL CARE US 144A FRONTIER COMMUNICATIONS CORP FRONTIER COMMUNICATIONS CORP GAMESTOP CORP 144A GENERAL ELECTRIC CAPITAL CORP GENERAL ELECTRIC CO GENERAL MOTORS CO GFL ENVIRONMENTAL INC 144A GIBSON ENERGY INC 144A GILEAD SCIENCES INC GILEAD SCIENCES INC GLOBAL MARINE INC GLP CAPITAL LP I GLP FINANCING GOLDMAN SACHS GROUP INC/THE GOLDMAN SACHS GROUP INC/THE GRIFOLS WORLDWIDE OPERATI 144A GROUP 1 AUTOMOTIVE INC 144A GS MORTGAGE SECURITIES GG10 AM GSR MORTGAGE LOAN TRUS AR6 4A5 GSR MORTGAGE LOAN TRUST 14 5A1 HALCON RESOURCES CORP HCA INC HCA INC HCA INC HCA INC HCA INC HERCULES OFFSHORE INC 144A HILTON WORLDWIDE FINANCE LLC I HONDA AUTO RECEIVABLES 20 1 A2 HONDA AUTO RECEIVABLES 20 4 A2 HORNBECK OFFSHORE SERVICES INC HSBC FINANCE CORP HSBC HOLDINGS PLC HUB INTERNATIONAL LTD 144A HUMANA INC HUNTINGTON INGALLS INDUST 144A HYUNDAI AUTO RECEIVABLES A A4 ICAHN ENTERPRISES LP / ICAHN E 3.000% 7.375% 2.700% 4.125% 1.700% 2.400% 9.875% 2.875% 6.500% 5.150% VAR RT 6.000% 5.375% 5.375% 9.500% 6.000% 5.750% VAR RT 7.250% 2.260% 2.120% 0.580% 0.450% 1.400% 1.500% 2.597% 3.219% 4.550% 4.125% 4.750% 7.875% 7.450% 5.500% 5.300% 4.500% 4.875% 7.875% 6.750% 1.625% 3.700% 7.000% 4.875% 5.250% 4.000% 5.250% 5.000% VAR RT VAR RT VAR RT 9.750% 7.690% 7.500% 7.580% 7.750% 5.250% 8.750% 5.625% 0.410% 0.450% 1.500% 6.676% 4.250% 7.875% 3.850% 5.000% 0.950% 4.875% 9/15/2021 11/1/2022 1/15/2020 1/15/2020 3/19/2018 3/19/2020 3/15/2019 1/15/2021 2/1/2038 11/15/2041 9/24/2073 4/1/2022 4/1/2023 1/1/2022 11/15/2019 3/3/2016 3/1/2023 7/25/2036 5/15/2022 11/15/2025 7/15/2026 12/15/2016 8/15/2016 8/15/2019 9/15/2018 11/4/2019 1/9/2022 11/14/2024 10/15/2020 10/15/2024 1/15/2027 7/1/2035 10/1/2019 2/11/2021 3/11/2044 10/2/2023 4/1/2020 7/15/2021 5/1/2016 4/1/2024 6/1/2028 11/1/2020 7/27/2021 3/3/2024 4/1/2022 6/1/2022 8/10/2045 9/25/2035 12/25/2034 7/15/2020 6/15/2025 12/15/2023 9/15/2025 7/15/2036 4/15/2025 7/15/2021 10/15/2021 9/21/2016 4/18/2016 9/1/2019 1/15/2021 3/14/2024 10/1/2021 1011/2024 12/15/2021 12/15/2016 3/15/2019 60,000 165,000 550,000 200,000 405,000 470,000 300,000 415,000 190,000 300,000 819,000 105,000 200,000 165,000 185,000 9,100,000 125,000 452,016 200,000 610,000 755,000 39,124 106,665 545,000 350,000 515,000 320,000 580,000 130,000 65,000 160,000 45,000 220,000 625,000 540,000 390,000 140,000 105,000 145,000 470,000 10,000 175,000 1,195,000 265,000 200,000 180,000 200,000 328,680 156,140 275,000 565,000 215,000 10,000 525,000 200,000 215,000 385,000 204,676 149,358 215,000 467,000 630,000 502,000 705,000 50,000 75,911 230,000 59,897 165,000 548,851 199,578 404,931 469,977 298,875 419,595 189,561 305,466 882,969 105,000 207,250 165,000 181,300 149,619 125,000 271,210 200,000 609,848 754,731 39,165 106,654 544,844 349,926 515,000 320,000 535,615 130,163 65,000 157,600 34,867 220,150 699,400 630,573 388,175 139,283 109,775 321,895 469,243 6,538 175,000 1,200,666 264,200 200,000 180,000 145,578 317,587 155,750 266,422 516,963 194,625 10,325 481,688 200,000 223,627 408,206 204,660 149,349 262,232 449,093 638,115 502,000 709,408 50,000 76,092 232,697 62,696 173,456 557,953 207,000 407,171 475,278 222,000 479,586 217,529 307,086 985,642 109,463 207,600 172,013 160,488 145,077 131,563 424,967 184,500 621,309 761,342 39,129 106,670 546,395 352,587 521,788 326,739 557,293 132,194 68,088 162,800 44,123 227,150 721,956 606,155 422,257 141,400 107,100 624,679 501,866 6,450 179,375 1,358,966 280,065 203,250 180,450 205,066 330,366 154,944 193,875 638,450 244,294 11,200 569,625 216,000 61,275 405,213 204,571 149,340 172,806 554,530 661,091 514,550 736,859 52,125 75,991 234,313
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value ICAHN ENTERPRISES LP/ ICAHN E ICONIX BRAND GROUP INC ICONIX BRAND GROUP INC IGATECORP INTERNATIONAL BANK FOR RECONST INTERNATIONAL FINANCE CORP INTERNATIONAL LEASE FINANCE CO ISTAR FINANCIAL INC ISTAR FINANCIAL INC JARDEN CORP JC PENNEY CORP INC JC PENNEY CORP INC JEFFERIES FINANCE LLC I J 144A JEFFERIES GROUP LLC JEFFERIES GROUP LLC JEFFERIES GROUP LLC JONES ENERGY HOLDINGS LLC I JO JPMORGAN CHASE & CO JPMORGAN CHASE & CO K HOVNAN ENTERPRISES I 144A KB HOME KINDER MORGAN INC/DE KINDRED HEALTHCARE INC 144A KINDRED HEALTHCARE INC 144A KLXINC 144A KRAFT FOODS GROUP INC KRAFT FOODS GROUP INC KROGER CO/THE LADDER CAPITAL FINANCE HO 144A LENNAR CORP LENNAR CORP 144A LEVEL 3 COMMUNICATIONS INC LEVEL 3 FINANCING INC LEVEL 3 FINANCING INC LOCKHEED MARTIN CORP MACQUARIE INFRASTRUCTURE CORP MARKWEST ENERGY PARTNERS LP I MARKWEST ENERGY PARTNERS LP I MASCO CORP MASCO CORP MASSACHUSETTS MUTUAL LIFE 144A MECCANICA HOLDINGS USA IN 144A MECCANICA HOLDINGS USA IN 144A MEDTRONIC INC MEDTRONIC INC 144A MEG ENERGY CORP 144A MEG ENERGY CORP 144A MEG ENERGY CORP 144A MERCADOLIBRE INC 144A MERCK & CO INC MGM RESORTS INTERNATIONAL MGM RESORTS INTERNATIONAL MICROSOFT CORP MIDAS INTERMEDIATE HOLDCO 144A MORGAN ST AN LEY MORGAN STANLEY MORGAN ST AN LEY MORGAN STANLEY MOTIVA ENTERPRISES LLC 144A MSCI INC 144A MYLAN INC MYLAN INC NAVIENT CORP NAVIENT CORP NAVIENT CORP NCI BUILDING SYSTEMS INC 144A NCUA GUARANTEED NOTES T C1 APT 5.875% 2.500% 1.500% 4.750% 4.250% 7.800% 8.625% 4.875% 5.000% 1.125% 5.750% 8.125% 6.875% 6.250% 6.450% 6.500% 6.750% 4.350% 2.250% 8.000% 1.375% 4.300% 8.000% 8.750% 5.875% 6.500% 3.500% 2.950% 5.875% VAR RT 3.250% 5.750% 6.125% 5.375% 3.350% 2.875% 6.750% 4.875% 7.750% 5.950% 8.875% 7.375% 6.250% 3.625% 2.500% 6.500% 6.375% 7.000% 2.250% 2.350% 7.750% 6.000% 3.500% 7.875% 8.000% 3.875% 7.300% 4.300% 5.750% 5.250% 3.750% 2.550% 7.250% 5.500% 6.125% 8.250% 2.650% 2/1/2022 6/1/2016 3/15/2018 4/15/2019 2/5/2016 6/3/2019 1/15/2022 7/1/2018 7/1/2019 3/15/2034 2/15/2018 10/1/2019 4/15/2022 1/15/2036 6/8/2027 1/20/2043 4/1/2022 8/15/2021 1/23/2020 11/1/2019 2/1/2019 6/1/2025 1/15/2020 1/15/2023 12/1/2022 21912040 61612022 11/1/2021 8/112021 11/15/2022 11/15/2021 12/1/2022 1/15/2021 8/15/2022 9/15/2021 7/15/2019 11/1/2020 12/1/2024 8/1/2029 3/15/2022 6/1/2039 7/15/2039 1/15/2040 3/15/2024 3/15/2020 3/15/2021 1/30/2023 3/31/2024 7/1/2019 2/10/2022 3/15/2022 3/15/2023 2/12/2035 10/1/2022 5/9/2017 4/29/2024 5/13/2019 1/27/2045 1/15/2020 11/15/2024 9/15/2015 3/28/2019 1/25/2022 1/25/2023 3/25/2024 1/15/2023 10/29/2020 180,000 160,000 115,000 126,000 311,000,000 60,080,000 330,000 105,000 305,000 220,000 30,000 135,000 305,000 345,000 465,000 100,000 120,000 650,000 680,000 140,000 225,000 1,100,000 75,000 210,000 140,000 140,000 600,000 250,000 1,025,000 265,000 290,000 120,000 535,000 5,000 585,000 70,000 105,000 105,000 100,000 30,000 170,000 155,000 900,000 540,000 600,000 15,000 335,000 65,000 290,000 575,000 365,000 190,000 600,000 285,000 765,000 255,000 290,000 265,000 450,000 85,000 160,000 380,000 195,000 179,000 29,000 110,000 601,509 179,144 156,263 138,185 126,000 567,178 985,201 330,000 105,000 304,488 214,980 28,750 134,588 305,000 278,251 382,908 98,790 120,000 651,339 679,284 140,000 225,000 1,095,578 75,000 210,000 140,000 176,380 616,575 249,920 1,025,000 250,819 303,661 118,913 542,481 4,800 580,488 70,000 109,650 105,700 103,557 32,700 198,067 136,390 770,917 538,952 599,394 13,250 332,581 61,394 292,378 574,224 365,000 190,000 593,100 284,150 788,371 252,766 341,613 263,013 523,809 85,000 449,527 379,065 195,634 174,039 27,550 110,000 600,317 185,400 186,501 136,850 126,788 501,207 1,000,545 418,275 105,525 305,000 261,250 28,350 132,300 283,650 344,741 502,200 99,499 112,200 714,981 681,455 135,100 215,156 1,129,084 80,485 229,950 139,650 181,279 620,796 254,865 968,625 269,638 646,883 123,228 561,081 5,145 620,790 82,907 110,250 107,352 116,000 33,675 278,900 173,600 915,750 573,340 613,284 13,875 308,200 61,263 337,488 575,506 411,081 195,225 598,416 280,013 642,021 268,153 346,933 274,601 497,795 87,869 711,301 381,991 205,725 170,498 27,840 116,325 613,395
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (b) Identity of issuer, borrower, or similar party (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value Description Rate of Maturity Par/Maturity Interest Date Value (d) Cost (e) Current Value NEW ALBERTSONS INC NEW ALBERTSONS INC NEW ALBERTSONS INC NEW YORK LIFE GLOBAL FUND 144A NEW YORK LIFE INSURANCE C 144A NGLENERGYPARTNERSLP/NGLE NGLENERGYPARTNERSLP/NGLE NINE WEST HOLDINGS INC NORTHROP GRUMMAN CORP NORTHWESTERN MUTUAL LIFE 144A NOVELLUS SYSTEMS INC NUANCE COMMUNICATIONS INC OASIS PETROLEUM INC OASIS PETROLEUM INC ODEBRECHT FINANCE LTD 144A 01SA144A OMNICARE INC OMNICARE INC ONCOR ELECTRIC DELIVERY T 1 A3 OPEN TEXT CORP 144A ORACLE CORP OXFORD FINANCE LLC I OXFO 144A PACIFIC GAS & ELECTRIC CO PACIFIC RUBIALES ENERGY C 144A PACIFIC RUBIALES ENERGY C 144A PALO AL TO NETWORKS INC 144A PARAGON OFFSHORE PLC 144A PARAGON OFFSHORE PLC 144A PARKER DRILLING CO PARKER-HANNIFIN CORP PEABODY ENERGY CORP PECO ENERGY CO PEPSICO INC PERRIGO FINANCE PLC PETROBRAS GLOBAL FINANCE BV PETROLEOS MEXICANOS PIONEER ENERGY SERVICES CORP PNC BANK NA PNC BANKNA PRICELINE GROUP INCITHE PROVIDENT FUNDING ASSOCIA 144A PSEG POWER LLC PUBLIC SERVICE CO OF NEW HAMPS QEP RESOURCES INC REALOGY GROUP LLC I REALO 144A REGENCY ENERGY PARTNERS LP IR REGENCY ENERGY PARTNERS LP IR REX ENERGY CORP REX ENERGY CORP 144A RIAL TO HOLDINGS LLC I RIA 144A RICE ENERGY INC RIO OIL FINANCE TRUST SER 144A RIO TINTO FINANCE USA PLC RKI EXPLORATION & PRODUCT 144A ROLTAAMERICAS LLC 144A ROSE ROCK MIDSTREAM LP I ROSE ROSETTA RESOURCES INC ROSETTA RESOURCES INC ROVI CORP 144A ROYAL BANK OF SCOTLAND GROUP P ROYAL BANK OF SCOTLAND GROUP P RSP PERMIAN INC 144A SABINE PASS LIQUEFACTION 144A SABINE PASS LIQUEFACTION LLC SANCHEZ ENERGY CORP SANCHEZ ENERGY CORP SERVICEMASTER CO LLCITHE 7.450% 8.700% 6.625% 2.100% 6.750% 6.875% 5.125% 6.125% 3.250% 6.063% 2.625% 2.750% 7.250% 6.875% 4.375% 9.750% 4.750% 5.000% 5.290% 5.625% 2.250% 7.250% 5.625% 5.375% 5.625% 0.000% 6.750% 7.250% 6.750% 3.300% 4.750% 4.150% 4.250% 3.500% 6.250% 7.470% 6.125% 2.250% 2.400% 1.000% 6.750% 2.750% 3.500% 5.375% 5.250% 4.500% 5.750% 8.875% 6.250% 7.000% 6.250% 6.250% 2.875% 8.500% 8.875% 5.625% 5.625% 5.875% 0.500% 6.000% 6.125% 6.625% 5.625% VAR RT 7.750% 6.125% 7.000% 8/1/2029 5/1/2030 6/1/2028 1/2/2019 11/15/2039 10/15/2021 7/15/2019 11/15/2034 8/1/2023 3/30/2040 5/15/2041 11/1/2031 2/1/2019 3/15/2022 4/25/2025 9/15/2016 12/1/2022 12/1/2024 5/15/2018 1/15/2023 10/8/2019 1/15/2018 11/30/2017 1/26/2019 1/19/2025 7/1/2019 7/15/2022 8/15/2024 7/15/2022 11/21/2024 12/15/2066 10/1/2044 10/22/2044 12/15/2021 3/17/2024 11/12/2026 3/15/2022 7/2/2019 10/18/2019 3/15/2018 6/15/2021 9/15/2016 11/1/2023 10/1/2022 12/1/2021 11/1/2023 9/1/2020 12/1/2020 8/1/2022 12/1/2018 5/1/2022 7/6/2024 8/21/2022 8/1/2021 7/24/2019 7/15/2022 5/1/2021 6/1/2022 3/1/2020 12/19/2023 12/15/2022 10/1/2022 3/1/2025 2/1/2021 6/15/2021 1/15/2023 8/15/2020 345,000 30,000 65,000 565,000 50,000 10,000 200,000 250,000 1,305,000 175,000 80,000 135,000 190,000 265,000 800,000 2,315,000 31,000 26,000 104,946 235,000 255,000 195,000 425,000 500,000 195,000 180,000 270,000 520,000 25,000 285,000 210,000 375,000 495,000 200,000 360,000 6,000,000 210,000 320,000 385,000 100,000 245,000 80,000 180,000 155,000 175,000 295,000 265,000 25,000 435,000 552,000 410,000 295,000 105,000 70,000 275,000 245,000 340,000 265,000 175,000 90,000 765,000 195,000 280,000 230,000 20,000 165,000 844,000 333,525 27,969 51,796 564,350 64,988 10,125 199,625 190,300 1,297,979 201,703 123,088 133,731 183,475 257,456 704,250 1,386,576 31,000 26,000 110,836 235,000 255,181 195,000 422,697 499,940 110,663 179,650 265,363 516,731 25,000 284,373 182,425 373,714 494,332 199,874 359,179 406,134 211,388 319,002 384,719 133,116 245,000 79,797 179,341 159,602 175,000 278,788 276,563 23,900 430,554 556,388 412,454 294,994 100,636 66,525 273,639 245,000 340,000 265,000 171,439 89,188 831,945 194,963 279,375 225,750 19,225 163,775 863,545 315,675 29,550 53,788 573,441 71,619 10,450 196,000 152,500 1,345,416 231,756 163,350 133,988 188,100 258,375 668,000 648,267 32,008 27,170 107,992 243,813 260,036 200,850 469,617 330,000 114,699 258,188 89,100 172,900 19,813 299,207 74,157 413,126 527,779 206,960 339,408 375,142 159,600 324,432 392,365 133,438 233,363 81,946 191,669 152,288 177,625 296,475 286,200 19,500 292,538 574,080 399,750 269,297 104,279 66,500 263,313 241,325 319,600 249,763 166,798 100,111 861,467 195,975 276,850 231,509 19,400 148,294 896,750
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value SHELL INTERNATIONAL FINANCE BV SIGNODE INDUSTRIAL GROUP 144A SM ENERGY CO SM ENERGY CO SM ENERGY CO SM ENERGY CO SM ENERGY CO 144A SOCIETE GENERALE SA REGS SOUTHERN CALIFOR EDISON CO SOUTHERN COffHE SOUTHWESTERN ENERGY CO SPRINGLEAF FINANCE CORP SPRINGLEAF FINANCE CORP SPRINT CAPITAL CORP STATOILASA STEARNS HOLDINGS INC 144A SUNCOR ENERGY INC SUNCOR ENERGY INC SUNEDISON INC 144A SUPERVALU INC SYSCO CORP SYSCO CORP TARGA RESOURCES PARTNERS 144A TARGA RESOURCES PARTNERS LP I TARGA RESOURCES PARTNERS LP I TARGA RESOURCES PARTNERS LP I TARGA RESOURCES PARTNERS LP I TELECOM IT ALIA CAPITAL SA TELECOM IT ALIA CAPITAL SA TELECOM ITALIA CAPITAL SA TELECOM ITALIA SPA 144A TENET HEALTHCARE CORP TERRAFORM POWER OPERATING 144A TESORO LOGISTICS LP /TES 144A TESORO LOGISTICS LP /TES 144A TEXAS INSTRUMENTS INC THERMO FISHER SCIENTIFIC INC THERMO FISHER SCIENTIFIC INC TIME WARNER CABLE INC TIME WARNER COS INC TIME WARNER INC TIME WARNER INC T-MOBILE USA INC TOTAL CAPITAL INTERNATIONAL SA TOY OT A AUTO RECEIVABLES 2 A A2 TOYOTA AUTO RECEIVABLES 2 B A2 TOY OT A AUTO RECEIVABLES 2 B A2 TOYOTA MOTOR CREDIT CORP TPC GROUP INC 144A TRANSCANADA PIPELINES LTD TRANSDIGM INC TRANSFIELD SERVICES LTD 144A TRANSOCEAN INC TRI POINTE HOLDINGS INC 144A TRINITY INDUSTRIES INC ULTRA PETROLEUM CORP 144A UNION PACIFIC CORP UNITED RENTALS NORTH AMERICA I UNITEDHEAL TH GROUP INC UNITYMEDIA GMBH 144A UNIVERSAL HEAL TH SERVICES 144A URBI DESARROLLOS URBANOS 144A US BANK NA/CINCINNATI OH USG CORP 144A VALEANT PHARMACEUTICALS I 144A VALEANT PHARMACEUTICALS I 144A VERIZON COMMUNICATIONS IN 144A 3.400% 6.375% 6.625% 6.500% 6.500% 5.000% 6.125% VAR RT 3.500% 2.150% 4.950% 8.250% 5.250% 6.875% 2.900% 9.375% 3.600% 6.500% 2.375% 7.750% 2.350% 3.000% 5.000% 6.875% 6.375% 5.250% 4.250% 6.375% 7.200% 7.721% 5.303% 6.875% 5.875% 5.500% 6.250% 2.750% 3.200% 3.300% 5.500% 6.950% 6.250% 5.375% 6.125% 2.875% 0.410% 0.400% 0.480% 3.400% 8.750% 4.625% 6.000% 8.375% VAR RT 4.375% 3.875% 5.750% 3.250% 6.125% 2.875% 6.125% 4.750% 9.750% 2.125% 5.875% 5.375% 7.250% 4.522% 8/12/2023 5/1/2022 2/15/2019 11/15/2021 1/1/2023 1/15/2024 11/15/2022 9/29/2049 10/1/2023 9/1/2019 1/23/2025 10/1/2023 12/15/2019 11/15/2028 11/8/2020 8/15/2020 12/1/2024 6/15/2038 4/15/2022 11/15/2022 10/2/2019 10/2/2021 1/15/2018 2/1/2021 8/1/2022 5/1/2023 11/15/2023 11/15/2033 7/18/2036 6/412038 5/30/2024 11115/2031 2/1/2023 10/15/2019 10/15/2022 3/12/2021 3/1/2016 2/15/2022 9/1/2041 1/15/2028 3/29/2041 10/15/2041 1/15/2022 2/17/2022 8/15/2016 12/15/2016 2/15/2016 9/15/2021 12/15/2020 3/1/2034 7/15/2022 5/15/2020 10/15/2022 6/15/2019 6/1/2036 12/15/2018 1/15/2025 6/15/2023 12/15/2021 1/15/2025 8/1/2022 2/3/2022 10/28/2019 11/1/2021 3/15/2020 7/15/2022 9/15/2048 365,000 260,000 10,000 5,000 10,000 65,000 140,000 250,000 200,000 370,000 180,000 145,000 425,000 365,000 415,000 140,000 480,000 195,000 65,000 55,000 520,000 530,000 165,000 35,000 200,000 85,000 15,000 50,000 10,000 20,000 540,000 620,000 120,000 155,000 170,000 270,000 185,000 300,000 595,000 310,000 100,000 415,000 240,000 500,000 241,266 270,565 10,000 370,000 200,000 470,000 200,000 210,000 100,000 410,000 505,000 155,000 260,000 355,000 495,000 965,000 475,000 500,000 820,000 55,000 415,000 395,000 1,115,000 364,234 260,000 9,800 4,800 9,625 58,100 139,638 267,162 199,648 369,142 179,608 141,545 425,000 317,110 414,896 140,000 476,328 186,644 73,053 55,000 519,293 533,135 165,000 35,675 214,656 85,363 14,625 43,859 9,289 19,189 531,933 501,926 119,057 154,413 171,750 268,094 184,887 299,973 608,931 309,042 114,920 435,994 240,000 504,642 241,265 270,541 9,999 390,875 208,500 467,876 200,000 212,625 76,694 405,465 393,399 155,000 259,139 373,638 494,465 965,000 475,000 460,884 819,262 55,000 415,000 392,429 925,148 386,101 258,375 10,125 5,075 10,200 61,198 139,300 336,296 213,640 372,076 183,074 163,125 420,219 334,888 434,754 137,900 489,638 250,495 76,213 58,575 532,028 547,246 169,950 36,663 209,500 85,425 14,438 53,500 11,275 23,350 565,650 573,500 124,500 159,650 175,950 277,204 188,754 307,611 683,500 402,963 129,057 486,031 247,500 512,095 241,230 270,481 10,000 393,458 183,000 505,885 200,000 223,650 72,969 400,263 789,063 139,888 272,290 375,856 508,157 1,020,488 499,344 55,250 830,644 58,438 418,631 417,713 1,109,949
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (b) Identity of issuer, borrower, or similar party (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value Description Rate of Maturity Par/Maturity Interest Date Value (d) Cost (e) Current Value VERIZON COMMUNICATIONS INC VERIZON COMMUNICATIONS INC VIRGIN MEDIA SECURED FINA 144A VIRGI ELECTRIC & POWER CO VODAFONE GROUP PLC VOLKSWAGEN AUTO LOAN ENHA 2 A2 VOLKSWAGEN GROUP OF AMERI 144A VULCAN MATERIALS CO WALGREENS BOOTS ALLIANCE INC WAL-MART STORES INC WAVE HOLDCO LLC /WAVE HO 144A WELLCARE HEAL TH PLANS INC WELLS FARGO & CO WELLS FARGO & CO WESTERN REFINING LOGISTIC 144A WHITING PETROLEUM CORP WHITING PETROLEUM CORP HERCULES INC 6.400% 4.400% 5.500% 4.650% 2.950% 0.420% 2.450% 4.500% 3.300% 4.300% 8.250% 5.750% 3.000% 2.125% 7.500% 5.000% 5.750% 6.500% 9/15/2033 11/1/2034 1/15/2025 8/15/2043 2/19/2023 7/20/2016 11/20/2019 4/1/2025 11/18/2021 4/22/2044 7/15/2019 11/15/2020 1/22/2021 4/22/2019 2/15/2023 3/15/2019 3/15/2021 6/30/2029 69,000 74,195 710,000 704,860 250,000 250,000 305,000 304,854 515,000 512,616 163,035 163,028 330,000 329,261 225,000 225,000 490,000 488,662 615,000 610,996 85,000 85,000 230,000 230,000 1,045,000 1,058,272 255,000 254,459 80,000 80,000 40,000 39,519 185,000 188,137 695,000 5_68--',_68_8_ 129,370,268 86,122 723,242 259,063 355,115 506,652 163,038 337,405 228,375 504,460 686,291 87,019 241,500 1,080,819 258,101 81,600 39,300 183,613 640,269 132,003,020 Preferred Stock ACTAVIS PLC ALCOA INC ALLY FINANCIAL INC ALLY FINANCIAL INC 144A ARCELORMITT AL CROWN CASTLE INTERNATIONAL COR DOMINION RESOURCES INCNA DOMINION RESOURCES INCNA DOMINION RESOURCES INCNA ISTAR FINANCIAL INC NEXTERA ENERGY INC TYSON FOODS INC WEYERHAEUSER CO Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred 767 767,000 8,301 407, 132 15,301 382,525 409 284,066 7,812 192,696 3,393 335,419 4,370 238,073 4,064 203,270 2,687 147,566 3,505 175,250 4,718 273,152 12,599 621,865 9,041 472,775 ------- 4,500,789 776,204 363,916 408,078 417,755 117,336 355,688 245,507 199,299 151,762 199,785 308,699 610,800 494,995 4,649,824 Stock A10 NETWORKS INC ABIOMED INC ACADIA HEALTHCARE CO INC ACCURAY INC ACE LTD ADT CORP/THE AESCORPNA AETNA INC AGCO CORP AGILENT TECHNOLOGIES INC AGILYSYS INC AKORN INC ALBANY INTERNATIONAL CORP ALCOA INC ALKERMES PLC ALLIANCE DATA SYSTEMS CORP ALLSTATE CORP/THE ALLSTATE CORP/THE ALLY FINANCIAL INC ALLY FINANCIAL INC ALTRIA GROUP INC AMBARELLA INC AMERICAN AIRLINES GROUP INC AMERICAN AIRLINES GROUP INC AMERICAN AIRLINES GROUP INC AMERICAN CAPITAL AGENCY CORP AMERICAN ELECTRIC POWER CO INC AMERICAN ELECTRIC POWER CO INC AMERICAN INTERNATIONAL GROUP I AMERICAN INTERNATIONAL GROUP I 28,400 5,586 7,950 52,700 5,900 25,000 63,000 4,400 19,587 18,700 11,102 8,400 55,200 18,178 6,730 15,300 17,400 30,350 34,700 20,300 2,822 12,300 42,900 10,500 35,176 12,200 18,500 10,500 32,800 118,817 143,758 305,308 251,753 493,201 845,725 789,687 206,675 1,066,544 10 259,089 423,997 164,596 896,878 1,141,762 1,818,716 753,047 688,968 645,844 813,023 802,025 163,645 532,878 1,587,931 372,058 797,324 548,550 751,121 533,999 1,567,400 122,972 399,846 569,220 490,110 657,791 1,038,000 809,550 468,732 933,125 42 184,008 527,456 333,900 713,184 1,108,313 1,993,763 1,088,901 1,238,358 636,743 728,006 1,015,406 213,654 649,194 2,264,262 554,190 750,304 686,250 1,040,625 575,295 1,797,112
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value AMERICAN VANGUARD CORP AMERIPRISE FINANCIAL INC AMERISAFE INC AMERISOURCEBERGEN CORP AMGEN INC AMN HEALTHCARE SERVICES INC AMTRUST FINANCIAL SERVICES INC ANACOR PHARMACEUTICALS INC ANADARKO PETROLEUM CORP ANALOGIC CORP ANGIODYNAMICS INC ANTERO RESOURCES CORP ANTHEM INC AON PLC APOGEE ENTERPRISES INC APPLE INC ARCHER-DANIELS-MIDLAND CO ARES CAPITAL CORP ARROW ELECTRONICS INC ASHLAND INC ASSURANT INC ASSURED GUARANTY LTD AT&T INC AT&T INC AUTOZONE INC BANK OF AMERICA CORP BARRACUDA NETWORKS INC BCE INC BELDEN INC BELMOND LTD BEST BUY CO INC BIOGEN INC BOEING CO!THE BOULDER BRANDS INC BRADY CORP BROOKDALE SENIOR LIVING INC BUNGE LTD CAINC CABLEVISION SYSTEMS CORP CABOT OIL & GAS CORP CABOT OIL & GAS CORP CAESARSTONE SOOT-YAM LTD CALIX INC CALPINE CORP CALPINE CORP CAMERON INTERNATIONAL CORP CAPITAL ONE FINANCIAL CORP CARDINAL HEAL TH INC CARDIOVASCULAR SYSTEMS INC CARLISLE COS INC CATAMARAN CORP CAVIUMINC CBRE GROUP INC CENTENE CORP CENTENE CORP CENTURYLINK INC CF INDUSTRIES HOLDINGS INC CHECK POINT SOFTWARE TECHNOLOG CHECKPOINT SYSTEMS INC CHEVRON CORP CHICAGO BRIDGE & IRON CO NV CIBER INC CIGNA CORP CIGNA CORP CIMAREX ENERGY CO CIRCOR INTERNATIONAL INC CISCO SYSTEMS INC 16,800 4,200 15,000 10,600 2,945 7,472 16,769 3,053 10,000 3,800 25,000 81,352 2,100 9,900 6,528 9,600 18,500 18,600 14,900 4,000 7,570 47,408 48,500 18,600 1,075 56,302 4,346 7,800 1,300 14,550 20,080 2,000 1,800 17,200 6,300 18,500 11,200 20,300 36,700 15,000 116,961 4,663 51,800 23,800 7,210 23,000 18,300 15,900 7,828 19,290 17,200 2,664 21,620 9,539 28,600 34,500 3,050 12,389 13,000 18,175 14,616 50,300 5,600 9,430 4,900 2,200 53,400 206,417 538,764 314,569 685,253 231,486 168,103 796,997 115,605 789,647 289,092 320,320 3,906,429 170,630 816,217 209,968 753,145 763,296 272,596 901,815 503,205 361,372 1,030,416 1,608,331 600,073 545,699 789,411 166,602 357,154 39,515 163,683 737,086 380,369 232,555 153,543 181,508 303,921 946,354 571,905 656,628 495,530 3,415,593 248,270 440,973 498,365 122,137 1,539,538 1,292,873 1,037,989 258,435 1,638,242 844,032 136,721 694,793 219,505 1,131,392 1,252,479 639,745 548,323 149,214 1,419,113 673,021 172,006 588,151 857,881 515,186 122,208 970,098 178,416 549,528 693,750 1,204,902 470,758 172,379 955,581 176,616 828,100 345,420 444,750 2,873,353 324,261 951,588 282,010 1,194,528 876,900 319,362 911,135 509,240 464,874 1,251,097 1,583,525 607,290 733,322 866,488 167,191 330,408 121,628 178,674 758,823 844,480 270,144 163,916 178,227 698,560 922,432 661,983 671,610 442,950 3,453,858 283,091 434,602 544,306 164,893 1,037,760 1,442,406 1,435,293 305,605 1,786,833 1,024,088 188,664 836,910 674,312 2,021,734 1,191,975 865,224 1,015,526 140,660 1,908,012 719,984 207,236 724,864 1,220,619 563,941 120,340 1,469,835
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value CIT GROUP INC CITIGROUP INC CITIGROUP INC CMS ENERGY CORP COMCAST CORP COMPASS DIVERSIFIED HOLDINGS COMPUTER SCIENCES CORP COMVERSE INC CONAGRA FOODS INC CONCHO RESOURCES INC CONCHO RESOURCES INC CONOCOPHILLIPS CONTINENTAL RESOURCES INC/OK COOPER COS INC/THE CORNING INC CORRECTIONS CORP OF AMERICA COST AR GROUP INC CROWN HOLDINGS INC CSG SYSTEMS INTERNATIONAL INC CYTEC INDUSTRIES INC DELPHI AUTOMOTIVE PLC DELTA AIR LINES INC DEMANDWARE INC DENBURY RESOURCES INC DENBURY RESOURCES INC DEXCOM INC DILLARD'S INC DIPLOMAT PHARMACY INC DISCOVERY COMMUNICATIONS INC DISH NETWORK CORP DORMAN PRODUCTS INC DR PEPPER SNAPPLE GROUP INC DTS INC/CA E*TRADE FINANCIAL CORP EAGLE MATERIALS INC EAGLE MATERIALS INC EASTMAN CHEMICAL CO EATON CORP PLC EDISON INTERNATIONAL ELECTRONIC ARTS INC ELI LILLY & CO EMC CORP/MA ENDO INTERNATIONAL PLC ENDOLOGIX INC ENSCO PLC ENSCO PLC ENTERGY CORP ENVESTNET INC EOG RESOURCES INC EOG RESOURCES INC EPAM SYSTEMS INC EURONET WORLDWIDE INC EVEREST RE GROUP LTD EVEREST RE GROUP LTD EXACORP EXACT SCIENCES CORP EXELON CORP EXPRESS SCRIPTS HOLDING CO EXXON MOBIL CORP FAIR ISAAC CORP FEDEXCORP FIESTA RESTAURANT GROUP INC FIFTH THIRD BANCORP FIFTH THIRD BANCORP FIFTH THIRD BANCORP FIRST CASH FINANCIAL SERVICES FIRST QUANTUM MINERALS LTD 21,370 44,600 51,400 38,140 13,165 20,078 10,300 12,600 11,000 5,340 20,234 6 15,300 10,660 52,600 18,200 1,703 16,400 11,800 20,420 15,800 22,300 2,816 164,177 65,300 2,864 6,330 11,917 28,214 15,918 15,800 13,000 5,400 70,041 17,100 2,206 20,550 17,500 17,900 57,100 13,600 44,705 9,603 1,667 53,900 26,255 13,700 6,000 5,750 20,560 8,017 3,700 5,900 3,345 11,900 2,892 16,200 16,800 47,102 14,424 7,200 6,236 43,400 43,695 49,030 9,600 288,347 983,197 1,648,603 2,689,040 1,213,576 446,519 316,186 612,839 309,305 318,645 586,953 1,850,940 167 660,151 1,699,624 1,189,364 467,328 212,174 675,907 159,612 985,129 913,707 846,540 139,852 2,796,343 1,101,802 117,817 618,239 224,073 820,269 953,736 671,127 675,145 98,811 1,507,924 1,304,872 206,410 1,473,673 1,166,598 870,254 1,549,932 801,354 1,075,550 322,870 28,337 1,289,123 1,309,209 965,711 204,406 476,894 1,804,764 242,519 61,989 592,778 303,090 116,016 60,374 557,229 1,256,978 4,065,849 1,233,380 1,085,656 300,182 643,778 650,399 988,137 410,652 4,381,549 964,214 2,297,792 2,648,128 1,331,467 738,096 343,334 672,384 248,220 401,830 619,013 2,345,525 374 668,151 1,997,897 1,192,968 732,732 336,904 885,928 358,602 1,103,497 1,259,892 1,002,608 171,494 1,196,850 476,037 178,542 864,108 412,090 831,608 1,115,215 786,050 1,020,240 183,978 2,000,021 1,428,876 184,333 1,423,293 1,188,950 1,118,213 3,358,337 988,040 1,142,660 861,389 28,456 1,135,673 553,193 1,061,613 336,480 527,218 1,885,146 491,362 217,375 1,026,600 582,030 141,372 63,682 544,482 1,457,736 4,003,670 1,279,697 1,191,240 380,396 818,090 823,651 924,216 446,592 3,494,770
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value FLOWSERVE CORP FLUIDIGM CORP FMC TECHNOLOGIES INC FOOT LOCKER INC FORD MOTOR CO FORTINET INC FORTINET INC GENCORP INC GENERAL DYNAMICS CORP GENERAL ELECTRIC CO GENERAL MOTORS CO GENERAL MOTORS CO GENTHERM INC G-111 APPAREL GROUP LTD GILEAD SCIENCES INC GOLDCORP INC GRANITE CONSTRUCTION INC GREENBRIER COS INC!THE GUIDEWIRE SOFTWARE INC H&E EQUIPMENT SERVICES INC HALLIBURTON CO HARLEY-DAVIDSON INC HARMAN INTERNATIONAL INDUSTRIE HARTFORD FINANCIAL SERVICES GR HARTFORD FINANCIAL SERVICES GR HARTFORD FINANCIAL SERVICES GR HASBRO INC HAYNES INTERNATIONAL INC HCC INSURANCE HOLDINGS INC HEWLETT-PACKARD CO HFF INC HILL INTERNATIONAL INC HONEYWELL INTERNATIONAL INC HOWARD HUGHES CORP!THE HSN INC HUDBAY MINERALS INC HUMANA INC HUMANA INC HUNTINGTON BANCSHARES INC/OH HUNTINGTON BANCSHARES INC/OH ICONIX BRAND GROUP INC IGATECORP ILUKA RESOURCES LTD INFINITY PROPERTY & CASUAL TY C INSYS THERAPEUTICS INC INTEL CORP INTELCORP INTERNATIONAL PAPER CO INTERNATIONAL PAPER CO INTREPID POTASH INC INVESCO LTD JARDEN CORP JARDEN CORP JM SMUCKER CO!THE JOHNSON & JOHNSON JPMORGAN CHASE & CO JPMORGAN CHASE & CO KELLOGG CO KENNAMETAL INC KEY CORP KIRBY CORP KNIGHT TRANSPORTATION INC KOHL'S CORP KOSMOS ENERGY LTD KRISPY KREME DOUGHNUTS INC KROGER CO!THE L-3 COMMUNICATIONS HOLDINGS IN 460 11,056 12,500 8,300 1 57,305 5,120 32,100 8,500 58,600 28,748 27,100 4,429 2,987 8,800 97,871 9,319 3,049 5,544 7,530 9,200 11,600 2,100 14,800 18,500 48,530 7,100 7,700 13,755 32,600 10,213 95,600 5,355 5,600 12,200 175,240 7,600 12,667 101,100 81,400 3,000 2,091 398,949 7,600 3,040 47,000 6,100 10,600 4,500 17,600 19,200 28,320 24,800 8,000 11,200 38,100 55,200 12,850 12,300 46,100 9,287 14,897 12,800 239,227 7,540 16,770 3,500 24,238 324,557 500,939 330,062 1,866,059 155,370 437,525 1,180,513 1,256,175 1,068,870 976,204 155,275 270,000 653,594 2,628,112 340,751 187,181 132,107 98,045 406,588 736,147 69,475 351,467 676,401 1,466,430 353,515 402,719 414,495 905,702 318,614 363,534 321,136 285,633 426,610 1,403,132 455,900 1,932,465 1,021,378 788,387 51,706 82,017 3,706,516 393,175 149,413 1,596,462 172,926 505,590 240,048 224,206 483,327 1,179,085 351,238 788,049 748,871 1,433,356 3,175,760 781,493 525,187 611,188 990,743 439,407 819,752 2,411,461 146,815 448,790 446,227 25,985 465,458 462,625 522,900 16 2,002,810 178,944 744,399 1,153,705 1,453,866 1,078,050 1,016,250 223,709 336,486 863,544 1,773,423 327,470 176,842 291,670 188,175 403,696 704,584 280,623 618,936 773,670 2,029,525 449,004 343,497 779,496 1,015,816 383,396 343,204 558,580 868,112 832,406 1,433,463 1,352,952 2,254,979 1,117,155 899,470 101,010 89,202 2,590,605 623,580 176,715 1,469,690 190,747 588,194 249,705 203,280 762,048 1,498,128 1,311,920 925,840 1,126,720 2,308,098 3,344,016 847,458 414,387 652,776 696,989 480,428 1,001,600 1,892,286 150,725 1,285,588 440,265
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value LACLEDE GROUP INCfTHE LANDAUER INC LAREDO PETROLEUM INC LEMAITRE VASCULAR INC LEVEL 3 COMMUNICATIONS INC LIBERTY BROADBAND CORP LIBERTY MEDIA CORP LIBERTY MEDIA CORP LIFEPOINT HEAL TH INC LIGAND PHARMACEUTICALS INC LINCOLN NATIONAL CORP LINCOLN NATIONAL CORP LKQ CORP LOCKHEED MARTIN CORP LORILLARD INC LOWE'S COS INC L YONDELLBASELL INDUSTRIES NV MACY'S INC MACY'S INC MAGNA INTERNATIONAL INC MALLINCKRODT PLC MANHATTAN ASSOCIATES INC MARATHON OIL CORP MARATHON PETROLEUM CORP MARATHON PETROLEUM CORP MARKETAXESS HOLDINGS INC MARKETO INC MARVELL TECHNOLOGY GROUP LTD MCDONALD'S CORP MCGRAW HILL FINANCIAL INC MCKESSON CORP MCKESSON CORP MCKESSON CORP MEDIDATA SOLUTIONS INC MEMORIAL RESOURCE DEVELOPMENT MERCK & CO INC MERITAGE HOMES CORP METLIFE INC MICRON TECHNOLOGY INC MICROSOFT CORP MINERAL RESOURCES LTD MINERALS TECHNOLOGIES INC MOBILE MINI INC MOLINA HEALTHCARE INC MOLSON COORS BREWING CO MONEYGRAM INTERNATIONAL INC MONOTYPE IMAGING HOLDINGS INC MONSTER BEVERAGE CORP MOODY'S CORP MORGAN ST AN LEY MOSAIC COfTHE MOSAIC COfTHE MSC INDUSTRIAL DIRECT CO INC MTS SYSTEMS CORP MYLAN NV MYLAN NV NABORS INDUSTRIES LTD NATIONAL GENERAL HOLDINGS CORP NCI BUILDING SYSTEMS INC NCR CORP NETAPPINC NEWELL RUBBERMAID INC NEWPORT CORP NOBLE CORP PLC NOBLE ENERGY INC NORTHROP GRUMMAN CORP NORWEGIAN CRUISE LINE HOLDINGS 25,237 5,300 227,067 31,600 19,814 18,414 18,660 26,265 3,627 23,420 19,200 50,670 4,100 16,700 3,300 10,500 16,400 17,300 17,200 6,793 3,375 17,925 13,300 4,170 1,933 8,876 59,740 5,250 7,700 6,600 2,150 60 5,400 19,300 17,300 3,430 18,900 29,200 11,700 281,976 5,600 7,600 7,263 7,500 14,800 7,400 7,300 10,300 10,200 51,695 22,600 7,300 8,500 10,140 12,100 83,300 56,228 815 21,900 29,240 20,500 10,100 14,700 74,161 7,600 9,100 1,252,302 175,976 3,920,671 189,367 524,279 745,311 494,250 565,455 167,352 1,191,863 839,064 1,170,900 334,450 764,504 220,265 712,471 652,853 923,159 582,303 289,651 177,985 554,219 1,191,955 270,234 165,351 297,547 587,478 501,098 527,546 607,814 187,331 3,490 66,883 365,241 817,831 143,422 762,933 964,585 359,053 2,429,245 181,733 124,149 281,399 345,360 131,841 106,838 425,382 969,230 310,517 2,362,165 1,139,253 464,252 302,492 585,426 701,800 1,674,166 916,858 15,185 701,478 1,072,763 793,799 136,126 238,324 4,616,483 1,037,813 293,988 1,292,639 186,242 2,960,954 264,808 1,066,786 1,042,232 719,343 1,003,323 73 279,678 1,345,713 1,103,232 1,295,125 832,136 1,091,345 245,487 921,900 1,064,524 1,122,943 922,952 860,333 170,809 468,022 1,361,787 426,966 160,246 227,403 878,178 511,560 796,180 1,492,920 486,330 13,572 264,816 342,382 994,404 166,835 955,395 792,196 475,664 1,454,055 409,360 324,064 488,727 558,375 127,872 241,536 1,010,284 1,069,140 364,038 2,381,072 1,040,956 527,060 643,025 601,809 718,135 1,137,045 1,051,464 14,083 646,269 1,036,850 800,935 192,506 209,916 3,626,473 1,223,296 491,491
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (a) (b) Identity of issuer, borrower, or similar party Description Rate of Maturity Par/Maturity Interest Date Value (d) Cost (e) Current Value NOVADAQ TECHNOLOGIES INC NUTRISYSTEM INC NXP SEMICONDUCTORS NV NXP SEMICONDUCTORS NV OLD DOMINION FREIGHT LINE INC OLD DOMINION FREIGHT LINE INC OPHIR ENERGY PLC OWENS-ILLINOIS INC PACIRA PHARMACEUTICALS INC/DE PAINTED PONY PETROLEUM LTD PARKER-HANNIFIN CORP PAYLOCITY HOLDING CORP PEPSICO INC PEYTO EXPLORATION & DEV CORP PFIZER INC PHILIP MORRIS INTERNATIONAL IN PHILLIPS 66 PINNACLE WEST CAPITAL CORP PLANTRONICS INC PNC FINANCIAL SERVICES GROUP I POOL CORP POWER SOLUTIONS INTERNATIONAL PRA GROUP INC PRIMORIS SERVICES CORP PROCTER & GAMBLE CO/THE PROOFPOINT INC PUBLIC SERVICE ENTERPRISE GROU PVH CORP QUALCOMM INC QUALYS INC QUANEX BUILDING PRODUCTS CORP QUMU CORP RANGE RESOURCES CORP RANGE RESOURCES CORP RAYMOND JAMES FINANCIAL INC RAYONIER ADVANCED MATERIALS IN REDKNEE SOLUTIONS INC REDWOOD TRUST INC REGAL BELOIT CORP REGIONS FINANCIAL CORP REGIONS FINANCIAL CORP REGIS CORP RENTRAK CORP RESTORATION HARDWARE HOLDINGS ROSETTA RESOURCES INC RSP PERMIAN INC RUBICON TECHNOLOGY INC RUSH ENTERPRISES INC RYDER SYSTEM INC SALLY BEAUTY HOLDINGS INC SKECHERS U.S.A. INC SKYWORKS SOLUTIONS INC SOCIEDAD QUIMICA Y MINERA DE C SOUTHWEST AIRLINES CO SOUTHWESTERN ENERGY CO SPECTRANETICS CORP/THE SPIRIT AIRLINES INC SPIRIT AIRLINES INC SPS COMMERCE INC SPX CORP STAMPS.COM INC STANCORP FINANCIAL GROUP INC STARZ STRATEGIC HOTELS & RESORTS INC SWIFT TRANSPORTATION CO SYMANTEC CORP SYSCO CORP 1,689 5,800 14,887 17,274 3,000 7,205 796,625 17,700 1,855 84,350 4,900 6,573 6,750 101,863 85,400 2,500 16,903 7,900 2,400 13,200 5,700 2,131 6,024 28,457 8,800 7,016 12,160 5,000 6,500 2,584 6,000 12,600 71,473 15,650 30,772 16,000 74,300 40,835 12,490 104,223 78,400 20,300 2,751 1,814 107,595 5,809 22,900 18,100 13,030 6,600 2,354 8,473 170,099 24,700 49,121 8,801 19,988 11,510 2,573 7,650 1,800 6,000 17,600 43,600 49,900 37,311 20,400 31,286 58,703 750,432 989,842 65,289 204,736 4,356,838 551,222 116,107 773,786 567,983 168,177 491,021 2,361,442 2,027,310 220,364 1,224,661 429,512 76,042 782,215 172,179 135,018 269,705 571,932 613,167 220,268 492,222 545,638 437,587 104,417 111,992 141,174 4,859,256 780,678 1,710,424 327,559 228,053 552,170 890,480 666,862 689,290 280,317 182,454 151,485 3,868,712 179,743 154,692 334,979 1,165,583 115,183 157,182 337,997 5,130,141 322,232 1,197,069 259,966 1,252,270 764,535 130,582 695,755 57,082 186,506 499,677 372,288 1,325,160 782,835 615,775 27,429 115,884 1,494,059 1,733,619 231,900 556,947 1,594,131 412,764 164,817 394,277 582,022 188,251 645,435 2,731,360 2,971,066 188,325 1,328,576 503,625 127,080 1,230,768 397,632 137,002 327,224 489,176 721,072 415,488 509,747 532,800 450,710 120,104 118,440 168,840 3,719,455 814,426 1,747,234 238,400 254,329 729,721 998,201 984,907 740,880 332,108 152,836 179,931 1,831,267 146,329 90,226 495,216 1,236,417 226,842 169,276 832,811 3,104,307 1,094,210 1,139,116 305,923 1,546,272 890,414 172,648 649,485 121, 122 411,600 605,616 541,948 1,298,398 871,772 769,692
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (a) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity or similar party Description Interest Date Value (d) Cost (e) Current Value TABLEAU SOFTWARE INC TANGER FACTORY OUTLET CENTERS TASEKO MINES LTD TASER INTERNATIONAL INC TESCO CORP TESORO CORP TESSERA TECHNOLOGIES INC TEXTRON INC THERMO FISHER SCIENTIFIC INC THERMON GROUP HOLDINGS INC TOURMALINE OIL CORP TRANSACT TECHNOLOGIES INC TRANSOCEAN LTD TRAVELERS COS INCfTHE TRAVELERS COS INCfTHE TREXCO INC TRINET GROUP INC TRINITY BIOTECH PLC TURQUOISE HILL RESOURCES LTD TYLER TECHNOLOGIES INC TYSON FOODS INC ULTIMATE SOFTWARE GROUP INCfTH UNIFIRST CORP/MA UNION PACIFIC CORP UNITED CONTINENTAL HOLDINGS IN UNITED RENTALS INC UNITED TECHNOLOGIES CORP UNIVERSAL HEAL TH SERVICES INC UNUM GROUP VALEANT PHARMACEUTICALS INTERN VALERO ENERGY CORP VALMONT INDUSTRIES INC VANTIVINC VERINT SYSTEMS INC VERIZON COMMUNICATIONS INC VERIZON COMMUNICATIONS INC VIACOM INC VIASATINC VISTEON CORP VOYA FINANCIAL INC WAGEWORKS INC WALTER INVESTMENT MANAGEMENT C WEB.COM GROUP INC WEIGHT WATCHERS INTERNATIONAL WELLS FARGO & CO WESTAR ENERGY INC WESTERN DIGIT AL CORP WESTERN DIGIT AL CORP WESTERN UNION COfTHE WESTERN UNION COfTHE WHIRLPOOL CORP XCEL ENERGY INC XEROX CORP ZEBRA TECHNOLOGIES CORP ZIONS BANCORPORATION 1,838 97,293 13,901 461,006 344,714 1,819,163 7,190 184,903 18, 100 268,689 14,270 769,418 26, 144 443,062 21,500 905,774 3,750 424,580 15,200 261,225 72,650 2,837,248 20,100 146,518 28,900 477,413 2 84 14,100 993,455 8,556 316,705 4,439 155,701 6,800 106,587 1, 135,819 4,640,640 1,357 160,169 28,900 931,109 2,278 148,201 4,500 244,085 1,800 115,754 16,200 880,370 22,891 2, 121,976 12,200 1,356,027 12,330 1,291,031 17,700 496,511 5,051 59,084 23,600 1, 148,469 6,436 899,290 15,500 488,896 3,000 74,799 19,600 926, 143 16,900 652,011 28,075 1,594,744 7,900 440,830 10,990 593,583 20,100 804,217 5,841 307,187 21,500 532,281 7,000 122,796 24,200 283,837 43,400 1, 155,324 15,300 484,309 7,830 325,682 10,500 616,304 18,300 356, 169 64,920 1,019,830 6,400 967,760 20,100 578,847 12,300 163,049 11,300 432,872 32, 160 6_67-',_87_3_ 309,549,719 170,052 488,898 220,617 173,351 205,797 1,302,708 1,053,080 953,095 503,775 365,864 2,198,717 118,791 423,963 216 1,524,633 466,559 156,386 130,900 3,543,755 163,559 1,106,870 387,157 529,605 194,958 1,089,450 2,086,744 1,429,840 1,451,364 597,021 1,003,230 1,501,432 790,856 584,350 185,790 953,148 821,847 1,917,523 470,919 1,059,436 866,511 311,501 347,225 132,650 169,158 2,360,960 593,028 712,608 955,605 380,823 1,350,985 1,293,184 699,681 158,055 1,025,080 868,320 346,799,397 Partnership I Joint Venture Interest VONTOBEL INTERNATIONAL EQUITY FIRST EAGLE GLOBAL VALUE REAL TY ASSOC FD IX PRINCIPAL GREEN PROPERTY FUND I LP PENN SQUARE GLOBAL REAL ESTATE FUND II LP ALINDA INFRASTRUCTURE FD II LANDMARK ACQUISITION FD VIII HL SECONDARY INVEST SPV-6 LP HAMIL TON LN VENTURE CAP P/JVI P/JVI P/JVI P/JVI P/JVI P/JVI P/JVI P/JVI P/JVI 81,215,886 42,733 21,541,721 5,958,776 16,570,653 10,437,305 2,885,954 3,674,833 333,333 67,500,000 67,684,515 17,717,713 2,539,749 7,273,958 8,120,123 3,069,281 3,674,833 333,333 81,215,886 84,657,672 22,229,500 6,381,616 17,297,536 10,866,659 3,506,720 3,841,302 332,866
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4i Schedule of Assets (Held At End of Year) (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value (b) Identity of issuer, borrower, Rate of Maturity Par/Maturity (e) Current (a) or similar party Description Interest Date Value (d) Cost Value IRONSIDES II PARTNERSHIP FUND PIJVI 72.444,762 48,869,280 81,874,677 PLATINUM EQUITY CAPITAL PIJVI 3,324,587 1,777,607 3,805,897 APOLLO INVESTMENT FUND VIII LP P/JVI 1,234,684 1,216,275 1,245,920 KPS SPECIAL SITUATIONS FUND IV P/JVI 1,232,355 1,213,382 1,540,819 AMERICAN SECURITIES P/JVI 944,366 961,538 1,059,072 EIG ENERGY FUND XVI LP P/JVI 1,762,676 2,646,233 1,470,008 SECONDARY INVESTMENTS SPV-4 LP PIJVI 6,688,565 4,444,607 6,706,259 CASTLELAKE Ill LP PIJVI 7,062,983 6,755,807 7,210,147 MONTREUX EQUITY PARTNERS II-A PIJVI 793,954 680,849 829,764 MONTREUX EQUITY PARTNERS Ill P/JVI 2,846,731 1,561,498 2,906,901 TPG OPPORTUNITIES PTNRS Ill B PIJVI 826,891 795,740 829,999 HAMILTON LANE VENTURE CAPITAL PIJVI 2,530,114 2,580,893 2,543,572 ENCAP FLATROCK MIDSTREAM 111-C PIJVI 175,609 136,236 178,731 ENERGY CAPITAL PARTNERS PIJVI 1,268,594 1,461,714 1,282,601 253,015, 164 343,814,124 I Collective Trusts EB DV NON-SL!NTL STOCK INDEX FUND CCT 294,925 43,094,145 55,109,351 EB DV NON-SL LGE CAP GTH IND FD CCT 285,363 28,988,248 65,059,751 EB DV NON-SL LGE CAP STOCK INDEX FD CCT 161,042 46,969,174 51,219,806 EB DV NON-SL TIPS INDEX FUND CCT 787,617 91,362,604 102,923,794 GOVT SHORT-TERM INV FUND CCT 68,925,584 68,925,584 68,925,584 JPMCB SPECIAL SITUATION PROPERTY FD CCT 20,554 30,411,096 42,247,988 JPMCB STRATEGIC PROPERTY FUND CCT 50,576 97,572,380 127,139,106 407,323,231 512,625,380 Registered Investment Companies DFA EMERGING MRKTS VALUE Mutual Fund 5,377,514 160,531,221 138,202, 100!SHARES RUSSELL 2000 VALUE E Mutual Fund 11,900 1,130,572 1,228,199 LOOMIS SAYLES FULL DISCRETION Mutual Fund 506,202 5,839,957 5,790,955 PAYDEN EMERGING MARKETS BOND Mutual Fund 5,149,703 74,546,305 69,984,460 UNITS AFL-CIO HOUSING INVT Mutual Fund 24,357 27,387,349 28,017,426 DRIEHAUS EMERG MKTS GROWTH CIT Mutual Fund 9,536,928 85,000,000 88,407,326 354,435,404 331,630,466 Other Investments BRAZILIAN GOVERNMENT INTERNATI 12.500% 11512016 500,000 210,985 156,754 MEXICAN BONOS 8.000% 1217/2023 10,230,000 782,365 766,108 MEXICAN BONOS 10.000% 121512024 5,300,000 588,736 451,818 MEXICAN BONOS 8.500% 1111812038 2,330,000 209,968 190,467 PHILIPPINE GOVERNMENT INTERNAT 4.950% 111512021 10,000,000 225,820 237,136 PHILIPPINE GOVERNMENT INTERNAT 6.250% 111412036 10,000,000 228,430 257,830 PHILIPPINE GOVERNMENT INTERNAT 3.900% 1112612022 20,000,000 486,997 449,754 EXPORT-IMPORT BANK OF KOR 144A 4.000% 1112612015 19,000,000 448,113 426,616 SECURITIES LENDING COLLATERAL STIF VAR 41112015 9,276,159 11,853,897 9,276,159 15,035,311 12,212,642 $ 1,591,091,268 $ 1,807,082,643
American Federation of Music and Employers' Pension Fund and Subsidiary EIN 51-6120204 Plan Number 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Line 4j Schedule of Reportable Transactions (a) Identity of Party Involved (b) Description of Asset (include interest rate and maturity in case of a loan) (c) (d) (e) (f) Expenses Purchase Selling Lease Incurred with Price Price Rental Transaction (g) Cost of Asset (h) Current Value of Asset on Transaction Date (i) Net Gain or (Loss) Series of Transactions Bank of New York Bank of New York GOVT SHORT-TERM INV FUN 545,343,581 GOVT SHORT-TERM INV FUN 538,071,403 545,343,581 538,071,403 545,343,581 538,071,403
1. Actuarial Assumptions Attachment to 2014 Form 5500 Schedule MB, Line 6 Statement of Actuarial Assumptions/Methods American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Actuarial Assumptions and Methods a. Investment Earnings: 7.50% (net of investment-related administrative expenses). 3.62% for current liability purposes. March 2014 PBGC interest rates for mass withdrawal purposes of 3.35% for first 20 years and ultimate rate of 3.50% for unfunded vested benefit liability for withdrawal liability calculations. b. Mortality: Healthy: RP-2000 Combined Blue Collar Mortality Table Projected to 2016 with separate rates for males and females. Disabled: RP-2000 Disabled Mortality Table projected to 2016 with separate rates for males and females. Mortality Rates Used in Conjunction with Full Funding Limitation Computations Test I (ERISA): Based on the Plan s mortality, as defined above. Test II (RPA 94): RP-2000 mortality table (male and female rates) with projection for mortality improvement, updated annually, as mandated by the IRS. c. Termination Rates: Termination rates have been separated into two groups. Sample rates are shown below for participants who earned less than $10,000 in the plan year prior to the valuation date: Attained Age 20 25 30 35 40 45 50 55 60 64 65 Years of Service 0-2* 2-3 3-4 (Select) (Select) (Select) 40.0% 30.0% 20.0% 40.0 30.0 20.0 45.0 35.0 25.0 45.0 35.0 25.0 50.0 35.0 25.0 50.0 35.0 25.0 50.0 35.0 25.0 50.0 35.0 25.0 50.0 35.0 25.0 50.0 35.0 25.0 0.0 0.0 0.0 4 or More (Ultimate) 20.0% 20.0 20.0 20.0 20.0 20.0 15.0 15.0 15.0 15.0 0.0 * Participants with less than one year of service are not included for valuation purposes. Therefore, this select period with respect to the present value of benefits only impacts participants who have accrued between 1 and 2 years of vesting service as of the valuation date. Nonetheless, this select period has an impact on the Normal Cost (which spreads liability from entry age to retirement age) for all participants.
Attachment to 2014 Form 5500 Schedule MB, Line 6 Statement of Actuarial Assumptions/Methods American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Actuarial Assumptions and Methods Sample rates are shown below for participants who earned $10,000 or more in the plan year prior to the valuation date: Attained Age 20 25 30 35 40 45 50 55 60 64 65 Termination Rate 6.0% 6.0% 6.0% 5.0% 5.0% 4.0% 3.0% 1.0% 0.0% 0.0% 0.0% d. Retirement Rates: Retirement rates used are shown below: Attained Age 55 56 57-58 59 60-61 62-63 64 65 66-69 70 and Over Retirement Rate 5.0% 2.5 3.0 4.0 7.5 10.0 15.0 50.0 20.0 100.0 The weighted average retirement age is 63.5. e. Disability Rates: None. f. Pre-Retirement Death Benefits: 80% of the participants are assumed to have beneficiaries. Male participants are assumed to be three years older than female beneficiaries and female participants are assumed to be three years younger than male beneficiaries.
g. Administrative Expenses: Attachment to 2014 Form 5500 Schedule MB, Line 6 Statement of Actuarial Assumptions/Methods American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Actuarial Assumptions and Methods Prior year s administrative expenses (net of investment-related expenses). h. Future Benefits Accruals: Future years contributions for each active employee are assumed to increase by 2.75% per year from those contributions reported for the prior pension credit year. i. Post Retirement Benefit Accruals: Sample contribution amounts used are shown below: Attained Age 65-75 76-80 81-85 86-90 91-95 Annual Contribution Amount $300 240 180 120 60 j. Benefit Limitations: The Section 415 limit of $195,000* is applied on an aggregate basis but the participant s total benefit at December 31, 2007 is applied on an employer-by-employer basis using a Section 415 limit of $180,000. The Section 401(a)(17) limit of $245,000* is applied on an employer-by-employer basis. For valuation purposes, the Section 401(a)(17) limit is assumed not to apply. * The limits do not change based on automatic cost-of-living adjustments. Rather, the limits will remain at the noted levels above until the Trustees amend the plan. k. Assumed Age of Commencement of Deferred Benefits: Age 65. l. Unreported Data: Active participants with unreported data (gender, date of birth) are assumed to have characteristics of the average group. If not easily determined, participants with unknown sex are assumed to be male.
Attachment to 2014 Form 5500 Schedule MB, Line 6 Statement of Actuarial Assumptions/Methods American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Actuarial Assumptions and Methods 2. Actuarial Cost Methods a. Liability Valuation Method: The Entry Age Normal actuarial cost method where Normal Cost is determined based on projected benefits for current active participants using each individual participant's actual entry age. Entry age is the age at date of employment or if date is unknown, attained age minus pension credits. Normal Cost and Actuarial Accrued Liability are calculated on an individual basis and are allocated by service. Projected benefits are based on benefits as if the current benefit accrual rate had always been in effect. b. Asset Valuation Method: The market value of assets is adjusted by smoothing the differences between the expected market value of assets and the actual market value of assets from the past five years. In accordance with the special asset valuation rule under funding relief, the amount of the difference in expected market value of assets and the actual market value of assets for the plan year ending March 31, 2009 is amortized over a 10-year period. The expected value of assets for each year is the market value of assets at the valuation date for the prior year brought forward with interest at the valuation rate to the current year plus contributions minus benefit payments and administrative expenses, all adjusted with interest at the valuation rate from the prior year to the valuation date for the current year. The actuarial value of assets is the resulting amount except if the resulting amount is greater than 120% of the market value, actuarial value of assets is set equal to 120% of market value of assets and if the resulting amount is less than 80% of the market value, actuarial value of assets is set equal to 80% of market value of assets. For purposes of determining the unfunded vested benefit liability for withdrawal liability calculations, the asset valuation method is market value.
Attachment to 2014 Form 5500 Schedule MB, Line 6 Statement of Actuarial Assumptions/Methods American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Actuarial Assumptions and Methods c. Special amortization rule: The Plan s investment loss for the Plan year ended March 31, 2009 is treated separately from other investment gains/losses, to be amortized in equal installments over the period beginning from April 1, 2009 through March 31, 2039. The portion of the net experience loss is based on the prospective method as described in Notice 2010-83. The schedule of amortization bases is as follows: Year Amount (Gain)/Loss Years in Amortization Base* Years in Offset Base* 4/1/09 4/1/10 4/1/11 4/1/12 4/1/13 4/1/14 $ 545,478,705 (124,097,819) 153,283,704 21,184,391 63,061,837 45,271,288 $ 704,182,106* 29 28 27 26 25 24 15 15 15 15 15 15 * The total loss of $704,182,106 equals the investment loss for the year ended March 31, 2009.
Attachment to 2014 Form 5500 Schedule MB, Line 6 Summary of Plan Provisions American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Plan Benefit Provisions 1. Effective Date November 16, 1959. The last plan amendment was effective November 7, 2013. 2. Participation An eligible employee becomes a participant on January 1 of the year in which the participant earns $750 in Covered Earnings by an Employer who is required to make contributions to the Fund. 3. Normal Retirement Age Age 65 or if later, the date on which a Participant completes five years of participation in the Plan. 4. Vesting Service Vesting Service is based on the Covered Earnings earned in each calendar year, as follow: Covered Earnings Years of Vesting Service < $750 0.00 $750 - $1,499 0.25 $1,500 - $2,249 0.50 $2,250 - $2,999 0.75 >= $3,000 1.00 A Participant becomes vested upon completion of 5 years of Vesting Service or upon attainment of Normal Retirement Age. 5. Regular Pension Benefit A Participant is eligible to receive a Regular Pension Benefit at Normal Retirement Age or at age 55 with 5 years Vesting Service. Regular Pension Benefit is calculated by multiplying each $100 of vested contributions earned by a Benefit Multiplier (a specific dollar amount). The monthly benefit amount under the Life Annuity form of payment is calculated in accordance with the following tables:
Age For Contributions for Covered Employment before 1/1/04 Attachment to 2014 Form 5500 Schedule MB, Line 6 Summary of Plan Provisions American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Plan Benefit Provisions Effective June 1, 2010 Monthly Amount per $100 of Vested Contributions For Contributions for Covered Employment Between 1/1/04 and 3/31/07 For Contributions for Covered Employment Between 4/1/07 and 4/30/09 For Contributions for Covered Employment Between 5/1/09 and 12/31/09 For Contributions For Covered Employment on and after 1/1/10 55 $1.70 $1.28 $1.19 $0.73 $0.37 56 1.86 1.40 1.30 0.80 0.40 57 2.05 1.54 1.43 0.88 0.44 58 2.26 1.70 1.58 0.97 0.49 59 2.48 1.87 1.74 1.07 0.53 60 2.75 2.07 1.92 1.18 0.59 61 3.04 2.29 2.13 1.31 0.65 62 3.36 2.53 2.35 1.45 0.72 63 3.75 2.82 2.62 1.61 0.80 64 4.16 3.13 2.91 1.79 0.90 65 4.65 3.50 3.25 2.00 1.00 For participants who retire after Normal Retirement Age, the monthly benefit is the regular pension amount at Normal Retirement Age actuarially increased to account for delayed retirement. 6. Disability Pension Benefits An active participant who has completed at least 10 years of Vesting Service, who has stopped working in Covered Employment because of a condition of Total Disability, and who has not started to receive a Regular Pension Benefit, is eligible for a Disability Pension Benefit. The monthly Disability Pension Benefit is calculated by multiplying each $100 of contributions by the applicable age-65 Benefit Multipliers, actuarially reduced to participant s actual age as of the effective date of Disability Pension Benefit. 7. Pre-Retirement Death Benefits If a vested participant who has not yet retired dies after age 55, the participant s beneficiary will receive a benefit equal to the benefit the beneficiary would have received had the participant retired on his date of death and elected to receive a 50% Joint and Survivor Annuity. If a vested participant dies before age 55, the beneficiary s benefit is actuarially equivalent to the 50% Joint and Survivor Annuity at age 55.
8. Post-Retirement Death Benefits Attachment to 2014 Form 5500 Schedule MB, Line 6 Summary of Plan Provisions American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Plan Benefit Provisions If a vested participant dies after his or her benefit begins and the pension benefit was being paid as a Joint and Survivor Annuity, the Joint Annuitant will receive 50% of the participant s monthly benefit for his or her lifetime; if the pension benefit was being paid as Life Annuity, the remaining balance of the guaranteed benefit will be paid. 9. Re-Retirement Benefits If a participant retires before his or her Normal Retirement Age, later returns to Covered Employment, and earns $50 or more of contributions in at least one calendar year between his or her initial pension Benefit Annuity Start Date and Normal Retirement Age, an additional benefit calculated based on the contributions made on the participant s behalf during that period will be paid as of the first of the month after the participant reaches Normal Retirement Age. 10. Redetermination Benefits If a pensioner returns to Covered Employment and earns $50 or more of contributions in a calendar year after Normal Retirement Age, he or she will earn an additional pension benefit. This redetermination benefit is calculated each July 1st based on contributions for Covered Employment earned during the previous calendar year. The redetermination benefit is based on the age-65 Benefit Multiplier in effect at the end of the previous calendar year and is offset by the actuarial equivalent of any redetermination benefit received in the previous year that is based on contributions earned after 2003. 11. Normal Form of Payment If a participant has an eligible spouse as of his or her Annuity Starting Date, the normal form of payment is Joint and Survivor Annuity. If a participant does not have an eligible spouse as of the Annuity Starting Date, the normal form of payment will be Single Life Annuity with respect to any benefit earned on and after January 1, 2004. If a portion of the participant s benefit was based on contributions earned prior to January 1, 2004, there is a guaranteed amount of 100 times that portion of the participant s benefit. The guaranteed feature is eliminated for benefit with an annuity starting date on or after June 1, 2010.
Attachment to 2014 Form 5500 Schedule MB, Line 4a Illustration Supporting Actuarial Certification of Status American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Funding Status Projection Results An accumulated funding deficiency is projected to occur for the Plan year ending March 31, 2019. The funded percentage as of April 1, 2014 is projected to be 86.1%. The Plan passes all four tests as required under IRC Section 432(b)(2), to determine whether the Plan is in critical status. However, the Plan remains in critical status since it fails to meet the requirement under IRC Section 432(e)(4)(B). PPA Certification I hereby certify that the American Federation of Musicians & Employers Pension Fund is considered critical, as defined in the Pension Protection Act of 2006 for the Plan year beginning April 1, 2014. Further, I hereby certify that to the best of my knowledge and belief, the actuarial assumptions employed in preparing this certification are individually reasonable and represent my best estimate of future experience. Further, the projected industry activity assumption, as required under IRC Section 432(b)(3)(B)(iii), has been provided by the Board of Trustees. Scheduled Progress The Pension Protection Act (PPA) requires the actuary to certify whether the plan is making scheduled progress in meeting the requirements of its Rehabilitation Plan. The Rehabilitation Plan for the American Federation of Musicians & Employers Pension Fund was adopted in April 2010 which reduced certain benefits and increased the Plan s contribution rates. The Trustees determined using reasonable actuarial assumptions and methods that they were unable to adopt a Rehabilitation Plan that would enable the Plan to emerge from critical status by the end of the ten-year Rehabilitation Period on March 31, 2023 which began on April 1, 2013. As a result, the Trustees adopted a Rehabilitation Plan that, in their judgment, consisted of all reasonable measures to either emerge from critical status by a later date than the ten-year period mentioned above or forestall insolvency. As required under the PPA, the Trustees have been and will continue to review the Rehabilitation Plan annually. Based on implementation of the Rehabilitation Plan and reflecting the Plan s experience through March 31, 2014, I hereby certify that the Plan is making scheduled progress as of April 1, 2014 as required under IRC Section 432(b)(3)(A)(ii). June 27, 2014 Kevin M. Campe Date Enrolled Actuary #14-5356
Attachment to 2014 Form 5500 Schedule MB, Lines 8b Schedule of Active Participant Data American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Summary of Participant Data Age/Service Distribution of Active Participants as of December 31, 2013 Years of Credited Service Attained Age 1-4 5-9 10-14 15-19 20-24 25-29 30-34 Under 25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70 and Over 262 1,192 1,306 749 461 351 270 184 128 46 23 3 219 916 779 484 297 267 267 130 51 16-4 205 756 645 433 395 398 260 79 15 - - 6 163 709 692 601 558 350 63 14 - - - 2 152 488 642 553 312 61 10 - - - - 3 91 576 608 304 55 11 - - - - - 5 155 555 344 47 5 35 & Over - - - - - - 6 186 318 42 4 40 & Up - - - - - - - 12 89 37 3 Total 265 1,415 2,433 2,449 2,454 2,357 2,912 3,321 2,235 481 101 Total 4,972 3,429 3,190 3,156 2,220 1,648 1,111 556 141 20,423
Attachment to 2014 Form 5500 Schedule MB, Line 9c Schedule of Funding Standard Account Bases American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Amortization Schedule for Minimum Funding Purposes (As of April 1, 2014) Charges Initial Liability Plan Amendment (1) Plan Amendment (2) Plan Amendment (3) Plan Amendment (4) Plan Amendment (5) Plan Amendment (6) Plan Amendment (7) Plan Amendment (8) Plan Amendment (9) Assumption Change (10) Plan Amendment (11) Plan Amendment (12) Assumption Change (13) Assumption Change (14) Plan Amendment (15) Assumption Change (16) Assumption Change (17) Plan Amendment (18) Actuarial Loss Plan Amendment (19) Assumption Change (20) Actuarial Loss Actuarial Loss Actuarial Loss Actuarial Loss Actuarial Loss Assumption Change (21) Actuarial Loss Actuarial Loss Actuarial Loss Plan Change (22) Funding Relief (23) Funding Relief (23) Actuarial Loss Funding Relief (23) Assumption Change (24) Actuarial Loss Funding Relief (23) Actuarial Loss Funding Relief (23) Actuarial Loss Funding Relief (23) Total Date Established 4/1/1977 4/1/1979 4/1/1981 4/1/1985 4/1/1986 4/1/1988 4/1/1989 4/1/1990 4/1/1991 4/1/1992 4/1/1993 4/1/1994 4/1/1996 4/1/1997 4/1/1998 4/1/1998 4/1/1999 4/1/2000 4/1/2000 4/1/2001 4/1/2002 4/1/2002 4/1/2002 4/1/2003 4/1/2004 4/1/2005 4/1/2006 4/1/2006 4/1/2007 4/1/2008 4/1/2009 4/1/2009 4/1/2009 4/1/2010 4/1/2011 4/1/2011 4/1/2011 4/1/2012 4/1/2012 4/1/2013 4/1/2013 4/1/2014 4/1/2014 Years in Payment Period 40 40 40 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 15 30 30 15 15 15 15 15 30 15 15 15 15 29 15 15 27 15 15 26 15 25 15 24 Plan Year of Last Payment 2016 2018 2020 2014 2015 2017 2018 2019 2020 2021 2022 2023 2025 2026 2027 2027 2028 2029 2029 2015 2031 2031 2016 2017 2018 2019 2020 2035 2021 2022 2023 2023 2037 2024 2025 2037 2025 2026 2037 2027 2037 2028 2037 Scheduled Balance at Valuation Date $ 8,296,014 3,242,602 8,996,138 1,506,445 2,946,211 7,003,306 27,067,987 4,335,139 11,928,024 19,405,840 5,462,682 8,116,499 18,745,119 3,193,074 2,321,033 38,307,662 4,063,351 21,851,311 67,717,249 7,629,453 25,650,116 39,109,546 23,167,237 36,280,388 34,187,065 23,901,640 14,258,232 33,858,364 7,588,503 93,589,714 491,014,743 3,349,214 512,216,988 102,845,348 62,646,864 147,142,189 5,845,889 94,362,008 20,590,979 48,677,916 62,134,155 44,017,963 45,271,288 $2,243,841,488 Level Annual Payment (Payable Beginning of Year) $ 2,967,564 745,544 1,579,977 1,506,445 1,526,354 1,945,080 6,223,491 859,145 2,094,897 3,081,954 796,621 1,099,961 2,254,260 365,539 254,335 4,197,712 428,211 2,223,572 6,890,855 3,952,609 2,458,331 3,748,293 8,287,138 10,076,412 7,860,314 4,736,857 2,504,147 2,966,524 1,205,174 13,648,179 66,543,198 453,891 43,383,625 13,077,859 7,533,815 12,462,612 703,017 10,802,404 1,744,010 5,334,075 5,262,623 4,638,766 3,834,376 $278,259,766
Attachment to 2014 Form 5500 Schedule MB, Line 9h Schedule of Funding Standard Account Bases American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Amortization Schedule for Minimum Funding Purposes (As of April 1, 2014) Credits Date Established Years in Payment Period Plan Year of Last Payment Scheduled Balance at Valuation Date Level Annual Payment (Payable Beginning of Year) Combined Bases Plan Amendment (1) Method Change (2) Plan Change (3) Plan Change (4) Asset Method Change (5) Funding Relief (6) Actuarial Gain Plan Amendment (7) Funding Relief (6) Funding Relief (6) Funding Relief (6) Funding Relief (6) Funding Relief (6) 4/1/2006 4/1/2007 4/1/2007 4/1/2008 5/1/2009 4/1/2009 4/1/2009 4/1/2010 4/1/2010 4/1/2010 4/1/2011 4/1/2012 4/1/2013 4/1/2014 10.39 30 10 15 15 30 15 15 15 28 15 15 15 15 2016 2036 2016 2022 2024 2038 2023 2024 2024 2037 2025 2026 2027 2028 $ 125,815,175 30,246,325 59,485,834 16,494,853 121,626,006 126,570,679 424,171,201 202,725,346 177,985,703 117,767,021 134,323,783 19,501,375 60,647,373 45,271,288 $ 55,258,699 2,603,584 21,278,642 2,405,444 16,390,157 10,562,549 57,484,442 25,778,644 22,632,740 9,974,602 16,153,569 2,232,485 6,645,676 4,770,846 Total $1,662,631,962 $254,172,079 Net Total $ 581,209,526 $ 24,087,687 Reconciliation of Net Scheduled Balance and Unfunded Actuarial Accrued Liability 1. 2. 3. Net Scheduled Balance at Valuation Funding Standard Account Credit Balance (Exhibit II) Unfunded Actuarial Accrued Liability: (1)-(2) $581,209,526 110,132,337 $471,077,189
04/01/2014 03/31/2015 001 AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND BRD OF TRUSTEES, AMERICAN FED MUSICIANS & EMPLOYERS' PENSION FUND51-6120204 X 4 1 2014 1,821,320,299 2,105,953,369 2,577,030,558 2,457,710,230 4,132,141,884 39,916,094 145,669,808 159,890,643 10/16/2015 Kevin M. Campe Milliman, Inc. 71 S. Wacker Drive Suite 3100 Chicago IL 60606-4637 14-05356 (312) 726-0677
1,821,320,299 13,039 1,575,585,539 16,544 608,727,461 58,422,302 1,889,406,582 20,423 1,947,828,884 50,006 4,132,141,884 44.08 10/01/2014 61,974,622 61,974,622 0 C 85.6 X X 2114 X X 3.62 X X
A A A A 7.50 7.50 199.2 X 2.75 5.9 8.2 1 44,017,963 4,638,766 5 45,271,288 3,834,376 5-45,271,288-4,770,846 X X 0 21,359,055 2,243,841,488 278,259,766 0 0 0 0 21,938,130 321,556,951 110,132,337 61,974,622 1,662,631,962 254,172,079 29,646,880 953,208,493
1,644,534,595 0 0 0 455,925,918 134,368,967 0 X 0 0 0 0
Attachment to 2014 Form 5500 Schedule MB, Line 4c Documentation Regarding Progress under Rehabilitation Plan American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Scheduled Progress The Pension Protection Act (PPA) requires the actuary to certify whether the plan is making scheduled progress in meeting the requirements of its Rehabilitation Plan. The Rehabilitation Plan for the American Federation of Musicians & Employers Pension Fund was adopted in April 2010 which reduced certain benefits and increased the Plan s contribution rates. The Trustees determined using reasonable actuarial assumptions and methods that they were unable to adopt a Rehabilitation Plan that would enable the Plan to emerge from critical status by the end of the ten-year Rehabilitation Period on March 31, 2023 which began on April 1, 2013. As a result, the Trustees adopted a Rehabilitation Plan that, in their judgment, consisted of all reasonable measures to either emerge from critical status by a later date than the ten-year period mentioned above or forestall insolvency. As required under the PPA, the Trustees have been and will continue to review the Rehabilitation Plan annually. Based on implementation of the Rehabilitation Plan and reflecting the Plan s experience through March 31, 2014, I hereby certify that the Plan is making scheduled progress as of April 1, 2014 as required under IRC Section 432(b)(3)(A)(ii). June 27, 2014 Kevin M. Campe Date Enrolled Actuary #14-5356
Attachment to 2014 Form 5500 Schedule MB, Line 3 Contributions Made to the Plan for the Plan Year American Federation of Musicians & Employers Pension Fund EIN/PN: 51-6120204/001 Contributions were made on a monthly basis throughout the year, April 1, 2014 through March 31, 2015. For purposes of crediting interest on the Schedule MB, we assumed that the total contributions for the period April 1, 2014 through March 31, 2015 were made as of October 1, 2014.
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY EIN 51 6120204 Plan No. 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Part III Financial Statements used to formulate IQPA's opinion The entire report has been attached to the Accountant's Opinion
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY EIN 51 6120204 Plan No. 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Part IV, Line 4i Schedule of Assets (Held at Year End) See attachment to the Accountant's Audit Report attached at Accountant's Opinion
AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND AND SUBSIDIARY EIN 51 6120204 Plan No. 001 Plan Year Ended March 31, 2015 Form 5500, Schedule H, Part IV, Line 4j Schedule of Reportable Transactions See attachment to the Accountant's Audit Report attached at Accountant's Opinion
American Federation of Musicians and Employers Pension Fund 2014 Schedule R (Form 5500) Attachment Part V Additional Employer Information for Multiemployer Defined Benefit Pension Plan Schedule R, Summary of Rehabilitation Plan/Update of Rehabilitation Plan Plan Name: American Federation of Musicians and Employers Pension Fund Plan Sponsor: Board of Trustees of Above Named Plan EIN/PN: 51-6120204/001 The Board of Trustees of the Fund (the Board ) adopted a Rehabilitation Plan on April 15, 2010. The main elements of the Rehabilitation Plan, which consists of a single schedule that sets forth benefit modifications and employer contribution requirements, are summarized as follows: In addition to the reduction in the Plan s Benefit Multiplier that was effective January 1, 2010, the following benefits and benefit alternatives were eliminated (generally effective June 1, 2010): o o o o o o Early retirement subsidies; Benefit guarantees for the single life annuity; Pop-up and benefit guarantee features of the 50% joint and survivor annuity; Post-normal retirement age subsidies; Certain forms of benefit for merged plans; and The lump-sum form of benefit offered by the Plan (not including lump sums with an actuarial present value of $5,000 or less.) The Rehabilitation Plan requires contributing employers to increase the amount of contributions made to the Plan. Generally, effective for contributions earned on or after June 1, 2010 but before April 1, 2011, the required contribution rate was 104% of the contribution rate otherwise in effect under the collective bargaining agreement or expired collective bargaining agreement. Effective for contributions earned on or after April 1, 2011, the required contribution rate is 109% (excluding the 4% increase, which is not cumulative). There are special rules for employer contributions calculated as set forth in the arbitration award of Burton Turkus and single engagement agreements. The Rehabilitation Plan had a special rule for collective bargaining agreements with terms of more than four years. An update to the Rehabilitation Plan on May 18, 2011 changed that to five years. Page 1 of 3
The Rehabilitation Plan provided that the Board will apply to the IRS for an automatic fiveyear extension of amortization, effective April 1, 2010, pursuant to Section 431(d) of the Code and Section 304(d) of ERISA. However, an update to the Rehabilitation Plan on May 18, 2011 eliminated that provision. The 10-year rehabilitation period begins on April 1, 2013 and ends on March 31, 2023. After extensive deliberations and an in-depth review of a variety of possible alternatives, the Board concluded that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures, the Plan could not reasonably be expected to emerge from critical status by the end of the rehabilitation period, and that the Rehabilitation Plan consisted of reasonable measures adopted by the Board which, based on reasonable actuarial assumptions, could be expected to enable the Plan to emerge from critical status. In the absence of the benefit changes or the increases in employer contribution rates described in this Rehabilitation Plan, the Plan would not have been projected to emerge from critical status at any point during the 40-year projection period used by the Plan s actuaries. When the Rehabilitation Plan was adopted by the Board, the Plan was estimated to emerge from critical status no later than March 31, 2047 and also was not projected to become insolvent at any point during the projection period. The Board devoted a considerable amount of time and attention to considering the advantages and disadvantages of the alternatives that would enable the Plan to emerge from critical status by the end of the 10-year rehabilitation period. Specifically, the Board considered: An alternative schedule reducing the Benefit Multiplier below $1.00. A 58% contribution rate increase (or 91%, if the increase generated a benefit accrual) that would have been required if the benefit changes described above were adopted. A contribution rate increase of 76.75% (120.5% if benefit accrual generating) if the benefit changes were not adopted. After considering each of these alternatives, the Board concluded that each would be unreasonable and would involve considerable risk to the long-term health (and even viability) of the Plan. Until such time as the Pension Protection Act defines more clearly the annual standards for meeting the requirements of a rehabilitation plan that is not expected to emerge from critical status at the end of the 10-year rehabilitation period, the annual standard for satisfying the requirements of the Rehabilitation Plan will be a determination that, based on the updated actuarial projections each year using reasonable actuarial assumptions, the Rehabilitation Plan (as updated and amended from time to time), will enable the Plan to emerge from critical status or forestall possible insolvency. The Rehabilitation Plan was updated on February 12, 2015 to include the following regarding application of Rehabilitation Plan to future agreements. Page 2 of 3
If a collective bargaining agreement providing for contributions to the Plan in accordance with the Rehabilitation Plan schedule expires while the Plan is still in critical status and the bargaining parties to the agreement fail to adopt a contribution schedule with terms consistent with the updated Rehabilitation Plan and its contribution schedules, then the contribution schedule under the expired collective bargaining agreement (as updated and in effect on the date the collective bargaining agreement expires) is implemented 180 days after the date on which the collective bargaining agreement expires. Page 3 of 3