Pacific Maritime Association

INDUSTRY BENEFITS Pay Guarantee Plan The Pay Guarantee Plan (PGP) provides a weekly income supplement to industry registrants who meet certain eligibility criteria and are unable to obtain a week���s work. A Class ���A��� registrant who qualifies is guaranteed an income equivalent to a 38-hour week at the basic straight time hourly wage ($34.68 per hour for Class ���A��� longshore, effective July 2, 2012, or $1317.84 per week). Class ���B��� registrants with 5 or more vacation qualifying years receive the same guarantee. Those Class ���B��� registrants with fewer than five vacation qualifying years are guaranteed income equivalent to a 28-hour week ($971.04). In general, to be eligible, a Class ���A��� or ���B��� registrant 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 registrant is qualified.���Class ���B��� registrants are not eligible for benefits until after one year of registration. The actual amount guaranteed an eligible individual each week is the difference between the four-week guarantee and the sum of earnings and other compensation received over the most recent four weeks. The contingent PGP liability for registrants for 2012/2013 is $20,020,000.��� 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. Evergreen���s Ever Unific in front of the Vincent Thomas Bridge, Los Angeles. PAY GUARANTEE PLAN BENEFITS AND EXPENSES Contract Year Ended June 30 Longshore and Clerks Walking Bosses and Foremen 2008 $4,288,314 $110,500 2009 $11,253,938 $211,344 2010 $8,626,994 $156,961 2011 $3,602,590 $94,225 2012 $3,165,046 $118,521 Includes benefits and expenses. Data obtained from Audited Financial Statements. 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 registrant���s quarterly earnings exceed a negotiated limit. ILWU-PMA Savings 401(k) Plan The ILWU-PMA Savings 401(k) 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. Longshore, clerk and foreman registrants may elect to defer, in increments of $1, up to $12 per hour paid each payroll week, into their 401(k) accounts. Prior to 2005, the maximum was $8 per hour. Par�� icipants age 50 and older may t elect to defer, in increments of $1, up to $12 per hour paid each payroll week, an additional amount, called a Catch-up Contribution. Deferrals and Catch-up Contributions are subject to annual statutory limits. Beginning with payroll year 2009, participants may elect to defer any percentage, up to 90%, of their vacation checks into the 401(k) Plan. The Employers contribute to a fund each year an amount sufficient to provide to the 401(k) account of each registrant, who has established a pension qualifying year in the previous payroll 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 receive $5 per qualifying hour up to a maximum of 2,240 hours and longshore and clerk registrants receive $1 per qualifying hour up to a maximum of 2,000 hours. Beginning with the 2008 plan year, a ���third-shift��� conversion factor was applied to qualifying hours worked during the third shift. The first employer contribution to registered walking bosses/foremen was negotiated in the 1993-96 agreement, and the first employer contribution to longshore and clerk registrants was negotiated in the 1999-2002 agreement. PACIFIC MARITIME ASSOCIATION 47

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