Pacific Maritime Association

I N D U S T RY B E N E F I T S ILWU-PMA Pension Plan The "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, 2018, the rate of pension benefit accrual for longshore employees retiring on or after July 1, 2014, was $200 per month per year of qualifying service. This rate provides a maximum monthly pension benefit of $7,400 for a participant with 37 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 and 62, the benefit is reduced for each year before age 62 (5% or fraction thereof for each year). A $500 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 and 62, this bridge supplement is reduced by an amount determined by the retiree's exact age (in years and months) at retirement. For retirees on or after July 1, 2008, maximum pension benefits are based on 37 years of service at retirement. Prior to July 1, 2008, 35 years of service was the recognized maximum. Surviving spouses or dependent child survivors of plan participants who die after July 1, 2008 receive a benefit equal to 75% of the amount per month per qualifying year of service that would have been received by the longshoreman were he still alive. Disability pensions have no minimum age but do require a minimum of 13 years of service and must have worked in the industry in each of the five payroll years ending with the year of retirement. The monthly benefit is the same amount as the Normal Retirement Benefit (with no reduction for its early commencement) except that no bridge supplement is payable. Effective with the 1994 payroll year, a year of service for benefit accrual is established when a registered participant 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 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 five 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 five 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. At the end of calendar year 2018, the Plan was paying $32,046,340 per month to 8,883 benefit recipients. Retirees, Pensioners and Surviving Spouses The table to the right 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 had 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 having attained age 70½. The in-service distribution rules under the Plan were eliminated for participants reaching age 70½ after the end of the 2002 calendar year. Widows' Independent Living Subsidy Program (WILSP) Effective July 1, 1978, the Widows' Independent Living Subsidy Program was implemented as part of the Welfare Plan. Effective January 1, 2017, this program provides a cash subsidy benefit under the Pension Plan and Medicare This table shows the number of longshore, clerk and foreman retirees by calendar year. Normal includes those retiring at or after age 65, normal retirement age; early, those retiring at ages 55-64; and Disability, those retiring on a disability pension. RETIREES BY YEAR Year Normal Early Disability Total 2009 231 202 45 478 2010 134 100 52 286 2011 132 52 42 226 2012 139 154 38 331 2013 138 122 49 309 2014 172 76 42 290 2015 172 79 55 306 2016 181 93 63 337 2017 201 103 60 364 2018 198 110 46 354 This table 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. PENSION BENEFITS FOR NORMAL RETIREMENT (the following benefits were effective July 1, 2018) Retirement Max Yrs. Rate Per Max. Mo. Date of Svc. Mo/Yr. Benefit Before 7/81 25 $98 $2,450 7/81-6/84 30 $98 $2,940 7/84-6/87 33 $98 $3,234 7/87-6/93 35 $98 $3,430 7/93-6/99 35 $98 $3,430 7/99-6/02 35 $110 $3,850 7/02-6/08 35 $153 $5,355 7/08-6/14 37 $180 $6,660 7/14-6/19 37 $200 $7,400 FRACTIONAL BENEFIT ACCRUAL Credited Monthly Benefit Annual Hours Accrued 1,300 $200.00 1,250 $192.31 1,200 $184.62 1,150 $176.92 1,100 $169.23 1,050 $161.54 1,000 $153.85 950 $146.15 900 $138.46 850 $130.77 800 $123.08 This table 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, 2018. A minimum of 800 credited hours per payroll year is required to earn a qualifying year of service for vesting and eligibility. 38 2 0 1 8 a n n u a l r e p o r t

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