“Normal Retirement Date” is age 65 or the fifth anniversary of the date of participation, whichever is later. Reduced retirement benefits are payable for Early Retirement as early as age 55 with 13 years of service.
Effective July 1, 1999, the rate of pension benefit accrual for longshoremen retiring on or after July 1, 1999, was $80 per month per year of qualifying service. This rate provides a maximum monthly pension benefit of $2,800 for a participant with 35 or more years of qualifying service retiring at age 62 or later. For those with at least 13 years of qualifying service taking early retirement between ages 55-62, the benefit is reduced for each year before age 62 (5% or fraction thereof for each year).
A $400 monthly “bridge” supplement is paid, until Social Security Retirement age, for those who retire at age 62 with at least 25 years of service. For those taking an early retirement between the ages of 55-62, this “bridge” supplement is reduced by an amount determined by the retiree’s exact age (in years and months) at retirement.
Disability pensions have no minimum age but do require a minimum of 13 years of service. The monthly benefit is the same amount as the Normal Retirement Benefit (with no reduction for its early commencement) except that no supplement is payable.
Qualified surviving spouses receive 55% of the pensioner’s basic pension benefit (excluding any supplement).
Effective with the 1994 payroll year, a year of service for benefit accrual is established when a registered longshoreman is paid or is credited with 1,300 hours. Creditable hours include work, travel, and vacation hours, as well as equated hours for PGP, paid holidays, and unemployment insurance payments.
A participant who is credited with fewer than 1,300 hours but at least 800 hours in any payroll year will earn a fraction of a year of service for benefit accrual determined by dividing the number of credited hours by 1,300. Years of Service credited prior to 1994 are not subject to any reduction in benefit accrual based on hours credited.
A minimum of 800 credited hours per payroll year is required to earn a qualifying year of service for vesting and eligibility. A participant is vested after 5 qualifying years of service or, if earlier, at normal retirement date. The Plan Trustees have adopted the Cliff Vesting option. Benefits are 100% vested after 5 qualifying years of service. If a participant leaves the plan prior to the vesting date, no partial benefits are received. Once vested, a participant’s earned qualifying years of service remain credited for life.
The Plan is non-contributory for the participants and is completely funded by employer contributions.
The table below shows the number of pension benefit recipients by calendar year.
Effective April 1, 1990, the Plan commenced payment of vested pension benefits to actively employed participants who have attained age 70½ on or after July 1, 1988. These monthly payments, which are referred to as In-Service Distributions, are equal to the amount of the monthly pension to which the participant would be entitled if he retired, and the payments commence on April 1 of the year following his attainment of age 70½.
Effective with plan year 1996, those persons receiving pensions under a “Qualified Domestic Relations Order” (QDRO), issued by a court as a result of divorce proceedings, are shown separately. At the end of 1999 the Plan was paying $10,813,042 per month to 8,992 benefit recipients. These monthly benefits include payments from the supplemental plan established pursuant to the Longshore and Clerk Memorandum of Understanding of July 1, 1999.
|Number of Benefit Recipients by Year|
The table Retirees by Year shows the number of
longshore, clerk, and foreman retirees by calendar year. Normal includes
those retiring at or after normal retirement age 65; Early, those
retiring at ages 55-64; and Disability, those retiring on a disability
Retirees by Year
|*Includes Special Program Benefit retirees.|
The table Pension Benefits for Normal Retirement shows
maximum pension benefits by retirement date. Also shown are the maximum years of
service which may be credited toward benefit accrual and the benefit rate per
month per year of credited service by retirement date.
for Normal Retirement
|(the following benefits were effective July 1998)|
|Retirement||Max Yrs||Rate Per||Max. Mo.|
|Before 7/81||25 yrs||$50||$1,250|
The table Fractional Benefit Accrual shows examples of
monthly benefit accruals for the credited annual hours between 800 and 1,300.
The example is based on the monthly normal retirement rate effective on or after
July 1, 1999. A minimum of 800 credited hours per payroll year is required to
earn a qualifying year of service for vesting and eligibility
Fractional Benefit Accrual
Changes in Net Assets Available for Benefits
The data in the table below are obtained from the audited annual financial statements of the ILWU-PMA Pension Plan. The records for the Plan are maintained on the accrual basis of accounting; each Plan Year ends June 30.
|For Plan Year Ended June 30:||1999||1998||1997|
|Benefits Paid and Expenses|
|Pensions paid||$110,559,864||$ 107,984,312||$ 101,498,035|
|Total Deductions||$122,787,159||$ 110,051,969||$ 103,491,139|
|Investment Income and Employer Contributions|
|Net appreciation of fair value of invest.||$78,179,002||$(17,319,232)||$ 250,625,233|
|Net gain (loss) on sale/redemption of sec.||183,174,034||306,283,240||-|
|Dividends from investments||13,067,021||14,625,519||20,440,372|
|Less investment expense||-3,389,704||-4,513,767||-3,748,992|
|Total Income Gain||$331,965,486||$ 351,180,189||$ 301,886,378|
|Contributions from Employers||28,796,000||35,040,507||104,087,238|
|Total Additions||$ 360,761,486||$ 386,220,696||$ 405,973,616|
|Net Increase||$247,974,327||$ 276,168,727||$ 302,482,477|
|Net Assets Avail for Benefits: Beg. of Year||1,907,732,704||1,631,563,977||1,329,081,500|
|End of Year||$2,155,707,031||$1,907,732,704||$1,631,563,977|
Employer Withdrawal Liability
Multi-employer plans are required by the Multi-employer Pension Plan Amendments Act of 1980 to establish procedures for the determination and imposition of withdrawal liability upon the withdrawal of a contributing employer.
Under the special rules approved by the Pension Benefit Guaranty Corporation, the ILWU-PMA Pension Plan will impose withdrawal liability for a withdrawal where the employer
a) during the 5 years following withdrawal continues or resumes covered
operation without an obligation to make contributions or
b) sells or transfers all or a substantial portion of his business or assets to a non-contributing employer.
An employer that simply goes out of business will generally have no withdrawal liability.
To satisfy the withdrawal requirement, the Plan uses the presumptive method for the computation of withdrawal liability. The presumptive method bases such liability on certain components of the Plan’s unfunded vested benefits liability.
The unfunded vested benefits liability for the Plan Year ended June 30 is shown below. The benefits reflected in the calculation for active employees include only retirement benefits already accumulated, already vested, and for which the active employees qualified as a result of age and service through June 30.
|Vested Liabilities as of|
|Plan Year Ended June 30:||1999*||1998||1997|
|Retired Participants & Beneficiaries||$ 865,191,983||$ 884,271,911||$ 879,777,731|
|Active Vested Employees||762,590,010||771,985,796||808,700,931|
|Total Present Value Vested Liabilities||$1,631,419,763||$1,660,008,940||$1,691,732,695|
|Actuarial Value of Assets||1,891,175,004||1,728,124,401||1,430,817,465|
|Unfunded Vested Benefits Liability||$1,660,008,940||$1,660,008,940||$ 260,915,230|
* The 1999 numbers are preliminary and are subject to revision before the final report is issued.Actuarial Accrued Liability On July 21, 1997, after careful study of the funding level of the Plan, the parties adopted and the Pension Benefit Guaranty Corporation (PBGC) approved an amendment to the special withdrawal liability rules, which eliminates the requirement that contributions for each Plan Year be at least equal to benefits and administrative costs. In lieu of that requirement, the parties agreed that should the funding percentage for the ILWU-PMA Pension Plan fall below 85% at the beginning of a particular Plan Year, the contributions in the following Plan Year will not be less than the lesser of (a) the total administrative costs and benefits or (b) the amount required to increase the funding percentage to 85%.
The actuarial accrued liability is the amount which, together with assumed investment earnings, will be sufficient to pay earned retirement benefits for the lifetimes of those Plan participants eligible for retirement benefits. The difference between net assets and total actuarial accrued liability is the unfunded actuarial accrued liability.
|Actuarial Accrued Liability July 1:||1999*||1998||1997|
|Actuarial Value of Assets||$1,891,175,004||$1,728,124,401||$1,430,817,465|
|Total Actuarial Liability||$2,029,402,858||$1,798,275,061||$1,925,183,906|
|Unfunded Actuarial Accrued Liability||$ 138,227,854||$ 70,150,660||$ 494,366,441|
* The 1999 numbers are preliminary and are subject to revision before the final report is issued.
The ILWU-PMA Welfare Plan provides comprehensive health care and related benefits to qualified active and retired participants and their qualified dependents.
The Plan is administered by the Board of Trustees, which is comprised of an equal number of union and employer appointed Trustees. Administrative services for the Plan are provided by the ILWU-PMA Benefit Plans office and are paid by the Plan.
The Plan is funded by contributions from employers, registered employees, and the ILWU. PMA, through assessments on tonnage and payroll hours, contributes necessary amounts which, in addition to employee and ILWU contributions, will adequately fund the Plan.
Registered employees make contributions to the Plan as a defined percentage of wages. Each registered employee contributed 0.8% of wages for the period from February 1996 through January 1997, 0.61% of wages for the period February 1997 through January 1998, 0.56% of wages for the period February 1998 through January 1999, and 0.50% for the period beginning February 1999. If an employee is required to contribute to the California State Disability Insurance Program, the employee’s contribution to the Plan is reduced by the amount of the employee’s payment to that Program.
The Trustees set the employee contribution rate. In setting the rate, the parties adhere to the annual recommendation of the Plan Consultant. This is based on the sufficiency of the current rate of employee contributions in relation to the “Weekly Indemnity” and the “Non-Industrial Disability Supplement” benefits.
During fiscal 1998/99 employee contributions to the Plan amounted to 2.5% of the total cost of benefits. The ILWU contributes the Union’s share of the cost of the Widows’ Independent Living Subsidy Program.
The Plan runs concurrently with the Pacific Coast Longshore and Clerk’s Agreement dated 1999-2002. Unless provided to the contrary, extension or renewal of the Pacific Coast Longshore and Clerks’ Agreement extends the Plan and continues the Plan in effect for the period of the extension or renewal. If the Plan were to be terminated, the remaining assets of the Plan would be used for payment of benefits until the assets were exhausted.
For Plan Year Ended June 30:
|Hosp., Med., & Surgical -self funded||$49,023,220||$47,094,462||$32,599,353|
|HMO Plans, inc. vision & presc. drugs||29,822,161||28,275,976||28,301,622|
|Dental services - Adult Program||12,818,400||11,616,915||10,790,511|
|Dental services - Children’s Program||4,015,074||2,544,559||2,562,649|
|Life insurance, AD&D||3,324,027||3,330,967||3,577,497|
|Prescription Drug Program||13,270,881||10,836,628||9,672,173|
|Medicare premiums reimbursements||5,209,411||5,160,021||5,149,728|
|Vision supplement (frames, contacts)||2,679||4,400||3,219|
|Non-industrial disability supplement||1,256,873||1,289,117||1,472,075|
|Alcoholism/Drug Recovery Program||916,370||1,043,815||921,563|
|Social Security supplement||794,531||1,065,134||1,860,898|
|Diabetic durable equipment||1,133||1,774||1,633|
|WILSP subsidy payments||61,287||74,400||84,400|
|Reconciliation to Form 5500 (accrual)||646,357||-3,777,592||2,350,717|
For Plan Year Ended June 30:
|Total contributions||$128,853,493||$117,196,747||$ 99,124,843|
|Net assets available for benefits:|
|Beginning of year||$ 30,200,587||$ 30,218,115||$ 32,802,788|
|Watchmen asset transfer||449,308|
|End of year||$ 32,239,228||$ 30,200,587||$ 30,218,115|
The eligibility categories for Welfare Plan participation that follow provide an overview of eligibility requirements. The Plan Trustees are the final arbiter of eligibility.
Active Employees: Only persons who have industry registration may become eligible for Welfare Plan benefits. An annual review is conducted by the Trustees prior to July 1. Each active employee’s employment record of covered employment for the preceding payroll year is used to determine whether the employee has established eligibility for the succeeding 12 months. (July through June).
In major ports, an employee will be eligible effective July 1 for 12 months of welfare coverage if a minimum of 800 hours were credited in the preceding payroll year, or if a minimum of 400 hours were credited in the last half of the preceding payroll year. The same requirements apply to minor ports except that the hours requirement is 480 hours in the preceding payroll year or 240 hours in the last half of the preceding payroll year.
A mid-year review is also conducted by the Trustees prior to January 1 to determine eligibility for those registered active employees who do not hold 12-month eligibility from the previous July 1. An active registered employee may receive eligibility for January through June if sufficient hours of covered employment have been credited for the employee in the first half of the preceding payroll year. In major ports, at least 400 hours must have been worked or credited in the first half of the preceding payroll year. In minor ports, at least 240 hours must have been worked or credited in the first half of the preceding payroll year.
No port has qualified for Minor Port status for Welfare Plan eligibility purposes since the disestablishment of Local 49 in Crescent City.
Pensioners: Most Welfare Plan participants who become pensioners have Welfare Plan eligibility beginning on the day they become pensioners. All disability pensioners have Welfare Plan eligibility. All participants who are registered when they retire on a normal pension with a separation date on or after July 1, 1984 have eligibility except for the following:
• Pensioners whose separation date was on or after July 1, 1988, and who accrued fewer than 5 years of credited pension service, and
• Deferred pensioners whose separation date was before age 55 or whose normal pension benefit has not commenced.
Adult Survivor Pensioners: A surviving spouse receiving a survivor pension has Welfare Plan eligibility as well as any qualified dependent children provided that the pension is claimed through a Pensioner who had Welfare Plan eligibility upon death or through an active participant who would have been entitled to Welfare Plan eligibility had retirement occurred on the date of death. Welfare Plan eligibility ends when the adult survivor pensioner remarries.
Effective July 1, 1999, the four-year limitation is eliminated if the deceased eligible active employee has five or more pension qualifying years. In such case, the dependent spouse has Welfare Plan eligibility until the spouse remarries, and the dependent child has Welfare Plan eligibility to age 19 (age 23 if a student).
Child Survivor Pensioners: A deceased pensioner’s dependent child has Welfare Plan eligibility as a child survivor pensioner for the period that the child receives survivor pension benefits. A deceased active employee’s dependent child who is eligible to receive a survivor pension has Welfare Plan eligibility for the period that survivor pension benefits are received.
Surviving Dependent Spouse or Child: The dependent spouse or child of a deceased eligible active employee has Welfare Plan eligibility for four years immediately following the employee’s death. Welfare Plan eligibility ends when the surviving dependent spouse remarries.
Dependents: The qualified dependent spouse and qualified dependent children of an eligible active employee or pensioner are eligible for Welfare Plan benefits. Eligibility as a dependent continues as long as the person through whom the dependent claims remains eligible, or until the dependents themselves cease to be qualified for dependent status.
Surviving ERISA Spouse: A surviving spouse of a pensioner who died on or after July 1, 1987, who was married for at least one year at the pensioner’s date of death, (and who would have qualified as an adult survivor pensioner under ERISA before the laws were changed in 1984) has welfare plan eligibility. Welfare Plan eligibility ends when a surviving ERISA spouse remarries.
Effective July 1, 1978, the Widows’ Independent Living Subsidy Program was implemented as part of the Plan. This program provides a cash subsidy benefit and Medicare supplement benefits. Benefits are available to certain widows of pensioners under the ILWU-PMA Pension Plan who died prior to July 1, 1964, and effective 1982, certain widows of active employees who died prior to July 1, 1975, and satisfied other requirements.
The Plan utilizes medical care service providers and insurance companies for some of the benefits coverage. Most benefits are paid directly from the Plan’s own assets.
Payments by Contract Year:
Contract Year Ended June 30
The longshore, clerks’, and foremen’s agreements recognize 15 holidays of which 13 are paid holidays. There are five no work holidays—Christmas Day, New Year’s Day, Bloody Thursday, Labor Day, and Thanksgiving Day. All no work holidays are paid holidays, except for Bloody Thursday. The nine other paid holidays are normal work days, and Lincoln’s Birthday is a recognized holiday although it is not a paid holiday.
Registered employees are eligible to receive a paid holiday benefit provided they (1) have registration status on the date of the paid holiday and (2) have been paid or credited sufficient hours in the previous payroll year to qualify for a basic 1-week vacation. To receive a paid holiday benefit, eligible employees must be available for at least two of the five days, Monday through Friday (exclusive of the holiday), during the payroll week in which the holiday falls.
If the registrant was paid sufficient hours in the previous payroll year to qualify for a 2-week basic vacation, the availability requirement is waived for paid holidays which are normal work days — i.e., Martin Luther King’s Birthday, Washington’s Birthday, Cesar Chavez’ Birthday, Memorial Day, Independence Day, Harry Bridges’ Birthday, and Veterans’ Day.
Those eligible for paid holidays receive pay equivalent to 8 hours at the basic straight time rate whether or not they work on the holiday. All employees who work on a “paid holiday” or on a recognized holiday are paid for hours worked at the overtime rate.
Holidays recognized by the Agreements for 2000 and for the first six months of 2001 are shown below.
|January||1||New Year’s Day1|
|17||Martin Luther King’s Birthday|
|March||31||Cesar Chavez’ Birthday|
|28||Harry Bridges’ Birthday|
|December||24||Christmas Eve Day1|
|31||New Year’s Eve Day1|
|January||1||New Year’s Day1|
|17||Martin Luther King’s Birthday|
|March||31||Cesar Chavez’ Birthday|
Holidays shown in color are non-paid holidays.
1No work will be performed except for passenger vessels, essential military cargo and emergencies from 1500 December 31 until 0700 January 2, from 0800 Bloody Thursday, Labor Day, and Thanksgiving Day until 0700 the following day, and from 1500 December 24 until 0700 December 26. However, an extended shift may be worked from 1500 to 1700 on December 24 and on December 31 to complete a vessel.
NOTE: When a holiday falls on a Sunday, the holiday is observed on the following Monday.
Benefits, Taxes & Expenses:
Payroll year in which vacation earned
|1995 (Paid April 1996)||$36,385,771|
|1996 (Paid March 1997)||41,954,936|
|1997 (Paid March 1998)||44,109,545|
|1998 (Paid March 1999)||44,898,744|
|1999 (Paid March 2000)||47,103,907*|
Vacation benefits are paid in the first full payroll week in March (April before 1997) for vacations earned in the prior payroll year. For example, the benefits shown for 1999 are to be paid in March 2000 for vacations earned in payroll year 1999.
Vacation benefits are paid in the first full payroll week in March (April before 1997) for vacations earned in the prior payroll year. For example, the benefits shown for 1999 are to be paid in March 2000 for vacations earned in payroll year 1999.A basic one-week or two-week vacation is paid according to the qualifying hours credited an eligible employee in the previous payroll year. An employee who is registered and qualified on December 31 of the calendar year in which he earns his vacation receives a vacation with pay.
One-week or two-week vacation benefit eligibility requirements are determined by the age of the employee and by the average hours of the port in which the individual is registered. The average port hours are calculated separately for longshoremen, clerks, and foremen and are the average hours paid to registered employees in the port of registration during the payroll year, excluding those with fewer than 100 hours.
The table below illustrates the annual hours requirement for vacation eligibility under varying conditions.
In general, a two-week basic vacation and eight years of qualifying service add another week. Additional vacation is also earned with a minimum of a one-week basic vacation for 17 years of qualifying service, another week for 23 years of qualifying service, and another week for 25 years of service.
As a general rule, a longshore or a clerk registrant’s vacation pay is 40 times the basic or skilled straight time rate of pay. Clerks may also accrue 2 additional hours for each 50 hours in excess of 1,975 to a maximum of 16 hours. Foremen receive vacation pay at 40 times the straight time rate and may accrue 2 additional hours for each 100 hours in excess of 1,400 to a maximum of 20 hours.
Vacations are scheduled by the Joint Labor Relations Committee in each port.
Annual Hours Requirements for Vacation Eligibility
|Average||Under Age 60||Age 60 and over|
|Port Hours||1 wk||2 wks||1 wk||2 wks|
|1,300 or more||800||1,300||700||1,200|
|1,200 - 1,299||700||1,200||600||1,100|
|1,100 - 1,199||676||1,100||600||1,100|
|1,000 - 1,099||615||1,000||600||1,000|
|900 - 999||552||900||552||900|
|less than 900||552||800||552||800|
|Number of Vacations Paid to:||Number of Actives Paid:||Avg. Wks.||Avg. Add’l Hours||Fewer Than 1,300 Hours||1,300 to 1,599 Hours||1,600 Hours or More||Vacation Payments|
|1 Wk.||2 Wks.||3 Wks.||4 Wks.||5 Wks.||6 Wks.||No. Pd.||Pct of Total||Average Payment|
|Local||Total||Inactives||Actives||>60||No. Pd.||No. Pd.|
|10||SF Bay Area||888||48||840||145||111||269||148||49||24||239||3.4||0.4||171||108||561||63.20%||$4,680||$3,553,515|
|34||SF Bay Area||268||18||250||55||10||41||16||4||179||5.2||11.7||4||14||232||86.6||6,905||1,847,675|
|91||SF Bay Area||72||7||65||29||1||64||6||16.9||5||3||57||79.2||8,761||624,852|
|Pay Guarantee Plan Benefits and Expenses: Contract Year Ended June 30|
|Year||Longshore and Clerks||Walking Bosses and Foremen|
The Pay Guarantee Plan (PGP) provides a weekly income supplement to longshore, clerk, and foreman registrants who meet certain eligibility criteria and are unable to obtain a week’s work.
A Class “A” longshore or clerk registrant who qualifies is guaranteed an income equivalent to a 38-hour week at the longshore basic straight time hourly wage ($26.68 per hour, effective July 3, 1999, or $1,013.84 per week). Class “B” employees with 5 or more vacation qualifying years receive the same guarantee. Those Class “B” employees with fewer than 5 vacation qualifying years are guaranteed income equivalent to a 28-hour week ($747.04).
In general, to be eligible, a registered Class “A” or “B” employee must, during the most recent four payroll quarters, have worked at least 50% of the average hours available in the home port. Further, the registrant must be available for work Monday through Friday in a given payroll week and may not refuse any work offered for which the employee is qualified. Class “B” registrants are not eligible for benefits until after one year of registration.
The actual amount guaranteed to an individual for a week is the difference between the guarantee amount ($1,013.84 or $747.04) and earnings and other compensation averaged over the most recent four weeks.
The contingent PGP liability for 1999/2000 is $24,960,000. This amount is divided into quarterly amounts. One-thirteenth of each quarter’s amount is available at the end of each payroll week to meet that week’s obligation.
Unused funds for a week are added to the next week and so on. If funds available during a given week are insufficient to pay all the guarantees on the coast in full, the payments to all are reduced proportionally. If funds remain at the end of a quarter, a lump sum make-whole payment is given to those whose PGP payment had been reduced.
The foremen’s plan guarantees weekly pay equivalent to a 38-hour week at the foreman straight time rate, but PGP is suspended if the employee’s quarterly earnings exceed a negotiated limit.
|Longshore & Clerk PGP Payments by Area||PGP Payments by Registration Category: Coast Summaries|
|Longshore PGP||Clerk PGP||WB/FM PGP|
|Year||Oregon||Washington||Total||Class “A”||Class “B”||Total||Class “A”||Class “B”||Total|
|1995||$54,196||$ 692,102||$1,214,373||$2,607,855||$4,568,525||$4,514,617||$ 4,828||$4,519,445||$ 49,003||$ 77||$ 49,080||$215,587|
The table below shows the distribution of longshore PGP by local for Class “A” and “B” longshore registrants who were paid 1 or more hours and were registered for the full year. The payments shown represent PGP earned during the payroll year.
|Receiving Any PGP||More than 1 Week||More than 6 Weeks|
|Total||% Chg||% of||% of||Average||% Chg||% of||Average||% of||Average|
Local (Number Working)
|PGP||from ‘98||Coast||No.||Local||Payment||from ‘98||No.||Local||Payment||No.||Local||Payment|
|13||LA/LB (3,766)||$ 16,100||122.40%||0.20%||97||2.60%||$ 166||14.60%||1||0.00%||$ 2,084||0||-||-|
|29||San Diego (51)||1,794||-63.20%||0||3||5.9||598||-26.40%||1||2||1,011||0||-||-|
|46||Port Hueneme (79)||4,632||49.50%||0.1||10||12.7||463||-10.30%||1||1.3||1,044||0||-||-|
|Total (3,896)||$ 22,525||48.10%||0.30%||110||2.80%||$ 205||-16.50%||3||0.10%||$ 1,380||0||-||-|
|10||SF Bay Area (913)||$ 17,527||41.80%||0.20%||58||6.40%||$ 302||29.60%||1||0.10%||$ 2,307||0||-||-|
|Total (1,019)||$ 651,408||-40.60%||8.60%||144||14.10%||$ 4,524||-38.10%||73||7.20%||$ 8,634||40||3.90%||$12,908|
|4||Vancouver, WA (131)||$ 86,090||1.00%||1.10%||58||44.30%||$ 1,484||48.00%||25||19.10%||$ 3,028||2||1.50%||$ 7,207|
|12||North Bend (84)||1,145,968||39.00%||15.2||81||96.4||14,148||44.10%||79||94||14,500||67||79.8||16,578|
|21||Longview, WA (174)||80,630||-60.60%||1.1||69||39.7||1,169||-40.60%||27||15.5||2,505||3||1.7||7,573|
|Total (853)||$2,788,097||-4.70%||37.00%||382||44.80%||$ 7,299||19.20%||229||26.80%||$11,954||123||14.40%||$19,974|
|7||Bellingham (31)||$ 363,888||-23.30%||4.80%||31||100.00%||$11,738||-13.40%||31||100.00%||$11,738||26||83.90%||$13,328|
|27||Port Angeles (53)||1,518,493||3.50%||20.1||51||96.2||29,774||11.60%||50||94.3||30,356||48||90.6||31,412|
|51||Port Gamble (11)||412,107||-6.40%||5.5||10||90.9||41,211||3.00%||10||90.9||41,211||10||90.9||41,211|
|COAST TOTAL (7,054)||$7,543,558||-8.60%||100.00%||944||13.40%||$ 7,991||-3.30%||532||7.50%||$13,961||361||5.10%||$19,222|
The ILWU-PMA 401(k) Savings Plan went into effect on June 30, 1991. The unique status PMA holds as payroll agent for the industry on the West Coast provided the opportunity for the Parties to establish this as the first tax-qualified multi-employer 401(k) plan in the United States.
Registered longshore, clerk, and foreman employees may elect to defer, in increments of $1, up to $8 per hour (effective January 1, 2000) paid each payroll week into their 401(k) accounts.
The Employers contribute to a fund each year an amount sufficient to provide to the 401(k) account of each registered employee, who have established a pension qualifying year, a contribution for qualifying hours paid by PMA Member Companies. The employer contributions are made to each account as soon as practicable following the end of each contract year. Registered Walking Bosses/Foremen will receive $4 per qualifying hour up to a maximum of 2,800 hours and registered Longshore and Clerk employees will receive $1 per qualifying hour up to a maximum of 2,000 hours.
The first employer contribution to registered Walking Bosses/Foremen was negotiated in the 1993-96 agreement, and that contribution was 50¢ per qualifying hour. This amount was increased to $2 in the 1996-99 agreement and to $4 in the 1999-2002 agreement. The first employer contribution to registered longshore and clerk employees was negotiated in the 1999-2002 agreement, and the new contribution was $1 per qualifying hour.
|ILWU-PMA 401(k) Plan|
|For Plan Year Ended June 30:||1999||1998||1997|
|Employee||$ 34,917,117||$ 30,858,774||$ 25,069,169|
|$ 37,944,959||$ 33,764,187||$ 27,849,255|
|Net unrealized appreciation||26,334,079||21,035,741||15,938,619|
|Net realized gain sale/redemption||18,421,403||10,735,110||3,044,885|
|Income collective funds/other||3,360,633||2,405,993||1,908,758|
|Less: Investment expense||-237,800||-324,461||-199,466|
|$ 48,478,881||$ 34,336,670||$ 21,094,724|
|Total Additions||$ 86,423,840||$ 68,100,857||$ 48,943,979|
|Distributions to participants||-5,053,966||-3,775,593||-3,563,877|
|Net Change||$ 81,369,874||$ 64,325,264||$ 45,380,102|
|Net Assets available for Benefits|
|Beginning of year||187,700,433||123,375,169||77,995,067|
|End of year||$269,070,307||$187,700,433||$123,375,169|
|Industry Travel Payments:|
|Contract Year Ended June 30|
Individual longshore registrants who travel voluntarily or individual longshore registrants and/or gangs who are ordered to travel by an employer within a defined area are paid for travel, when assigned to a job, under the provisions of the Industry Travel System. Clerks registered in the multi-chartered locals receive the same benefit when they travel.
The purpose of the system is to provide a mechanism whereby all ports may have available qualified longshore employees in periods of peak work opportunity and to provide reimbursement for travel expenses to longshore registrants who travel to nearby ports to seek work opportunity.
Qualified travelers are paid for travel time at the rate of one-half of the basic hourly rate. A mileage allowance for transportation is also paid, not to exceed the maximum nontaxable rate allowed by IRS standards.
Travelers employed on successive days are paid travel time and transportation allowances for the first day and the last day and the lesser of travel time and transportation or subsistence and lodging for all other days. The lodging rate is $60.00 per night and the per meal rate is $11.00.
The Industry Travel System, originally called the Voluntary Travel Fund, was established to provide PMA member employers with an economic incentive to use voluntary travelers.
Employers are reimbursed for the payments made to individuals and/or gangs ordered to travel for their travel expenses, payroll taxes, payroll hour assessments, and an allowance for workmen’s compensation insurance and other related expenses.
|CFS Program Fund:|
|Total “Assessment” and “Incentive” Credits|
|Paid by Year|
* The I-Credit figures are shown in the year in which paid. The I-Credit payments are calculated based on work performed in the previous year.
The purpose of the CFS Program is to “encourage the establishment, development and growth of efficient and productive container freight stations on the docks to preserve work which has historically been performed by the longshore work force.”
In order to accomplish the program objective, assessments generated on containerized cargo are used to reimburse PMA member employers operating container stuffing and stripping facilities for payments they have made for payroll hour assessments.
There are two types of reimbursements made for CFS work: (1) a credit based on CFS hours worked in a facility that is defined as an “A-Credit,” for “Assessment Credit,” and (2) a credit based on CFS tonnage handled in a CFS facility that is defined as an “I-Credit,” for “Incentive Credit.”
CFS hours are hours worked by certain longshoremen, clerks, and walking bosses or foremen working in CFS facilities.
The A-Credit is an amount equal to 90% of the hourly benefit assessment rate excluding that portion of the vacation assessment collected to cover insurance and taxes.
The I-Credits are an amount (for an entire PMA administrative area) that are equal to 11.1% of the sum of A-Credits paid in the corresponding area. Therefore, the sum of the A-Credits and the I-Credits equals the total hourly assessments (less the vacation rate adjustment) paid during a given period in an area.
Payments for A-Credits are made on a regular basis; however, I-Credit payments are made only after the close of the payroll year.
The total I-Credits for each area are based upon the total A-Credits paid. Each employer’s share of I-Credits is to be the same proportion of the total I-Credits for the area that the employer’s CFS tons are of the total CFS tons for the area; no employer’s I-Credit is allowed to exceed 22.2% of his A-Credits.
|Dispatch Hall Costs|
|PMA Cost vs. Total Cost|
|Year||PMA Cost||Total Cost|
|*Based on unaudited financial reports|
All longshore employees in a port are dispatched through a hall maintained and operated jointly by the ILWU and the PMA under the auspices of a Joint Port Labor Relations Committee.
Any longshore worker who is not a member of the Union is permitted to use the dispatching hall only if the worker pays a pro rata share of the dispatching hall expenses, the Labor Relations Committee’s expenses, and other related expenses. Any non-PMA employer may use the dispatching hall only if that company pays to PMA the equivalent of the dues and assessments paid by PMA members for the support of the hall. Workers not on the registered list may not be dispatched from the dispatching hall or employed by any employer while there are individuals on the registered list who are qualified, ready, and willing to do the work.
The personnel for each dispatching hall, with the exception of the Dispatchers, are determined and appointed by the Joint Labor Relations Committee of each port. Dispatchers are selected by the Union through elections in which all candidates must be qualified according to standards prescribed and measured by the Joint Port Labor Relations Committee. All dispatch hall personnel are governed by rules and regulations set down by the Joint Port Labor Relations Committee. PMA may, at its option, maintain a representative in the dispatching hall, and any authorized representative of the PMA or the Union may inspect dispatching hall records.
The dispatching of clerks is similar to longshore employees except that there are four central dispatching halls, one in each respective port area with such branch halls as may be mutually agreed. Walking bosses’ and foremen’s dispatching procedures are contained in local supplemental agreements.
The joint operating expenses of the dispatch halls were equally shared by the parties until 1978. During the 1978/81 contract, PMA’s portion of all jointly-agreed-to dispatch hall expenses was 75% of the joint dispatch hall costs in the contract year ending July 1, 1978, plus an additional amount each year of the contract. The additional amount was equal to the 1977/78 dispatch hall wage costs multiplied by the cumulative percentage increases in the longshore base wage applicable each of the contract years. From July 1, 1981, to October, 1, 1993, PMA was obligated to pay 85% of joint expenses.
The parties agreed to return to the original 50/50 cost sharing formula in the 1993 negotiations. This was accomplished in three steps beginning July 1, 1993, when PMA’s share was reduced to 75% of all jointly agreed to dispatch hall expenses. The PMA portion was reduced to 65% effective July 1, 1994, and was returned to 50% effective July 1, 1995.
It was agreed during the 1996 contract negotiations that the Union would trade one paid holiday (Bloody Thursday) in return for which PMA would be obligated to pay 65% of all 1996 base year joint Dispatch Hall expenses. All jointly agreed to expenses above the base year expenses would continue to be paid on a 50/50 basis.
During the 1999 contract negotiations it was agreed that PMA would be obligated to pay 85% of all 1998 base year dispatch hall expenses in exchange for implementation of seven-day allocations, orders, and dispatch in those Areas in which it was not currently enacted.