NPF Form 4
Annual Funding Notice
Sheet Metal Workers’ National Pension Fund
This Notice, which federal law requires all multiemployer plans to send
annually includes important information about the funding level of the Sheet
Metal Workers’ National Pension Fund, EIN 526112463, Plan No. 001 (“Plan”
or “Fund”). This Notice also includes information about rules governing
insolvent plans and benefit payments guaranteed by the Pension Benefit
Guaranty Corporation (PBGC), a federal agency. This Notice is for the plan
year beginning January 1, 2007 and ending December 31, 2007 (Plan Year).
Plan’s Funding Level
The Plan’s “funded current liability percentage” for the Plan Year was
39.27%. In general, the higher the percentage, the better funded the plan.
The funded current liability percentage, however, is not indicative of how well
a plan will be funded in the future or if it terminates. Whether this
percentage will increase or decrease over time depends on a number of
factors, including how the Plan’s investments perform, what assumptions the
Plan makes about rates of return, whether employer contributions to the
Fund increase or decline, and whether benefit payments from the Fund
increase or decline.
Plan’s Financial Information
The market value of the Plan’s assets as of January 1, 2007 was
$3,152,717,824. The total amount of benefit payments for the Plan Year
was $424,060,348. The ratio of assets to benefit payments is 7.4 to 1. This
ratio suggests that the Plan’s assets could provide for approximately seven
years of benefit payments in annual amounts equal to what was paid out in
the Plan Year. However, the ratio does not take into account future changes
in total benefit payments or Plan assets.
Rules Governing Insolvent Plans
Federal law has a number of special rules that apply to financially troubled
multiemployer plans. Under so-called “plan reorganization rules,” a plan with
adverse financial experience may need to increase require