Pacific Maritime Association

ACTUARIAL ACCRUED LIABILITY 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: 2019 2018 2017 2016 2015 2014 Actuarial Value of Assets $ 6,864,617,313 $ 6,228,785,199 $ 5,651,600,468 $ 5,046,274,566 $ 4,510,609,528 $ 3,966,433,764 Actuarial Liability: Pensioners/Survivors 3,265,039,741 3,101,462,542 3,160,024,559 3,058,742,453 2,951,554,705 2,850,062,521 Inactive Vested 23,754,874 20,959,549 19,071,017 16,952,975 16,261,332 15,658,273 Active Employees 3,822,807,194 3,526,982,208 3,379,133,694 3,203,495,763 2,899,272,219 2,819,182,022 Total Actuarial Liability $ 7,111,601,809 $ 6,649,404,299 $ 6,558,229,270 $ 6,279,191,191 $ 5,867,088,256 $ 5,684,902,816 Unfunded Actuarial Accrued Liability $ 246,984,496 $ 420,619,100 $ 906,628,802 $ 1,232,916,625 $ 1,356,478,728 $ 1,718,469,052 Pension Benefits CHANGES IN NET ASSETS AVAILABLE FOR PENSION BENEFITS The data in the table below are obtained from annual audited financial statements of the ILWU-PMA Pension Plan which are prepared on the accrual basis of accounting. The Plan year ends June 30. 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 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 its 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: 2019 2018 2017 2016 2015 2014 Retired Participants & Beneficiaries $ 3,206,250,359 $ 3,215,832,788 $ 3,138,630,504 $ 3,014,662,573 $ 2,910,945,065 $ 2,764,559,277 Inactive Vested 23,455,536 21,280,775 18,988,335 16,846,484 16,170,144 14,646,193 Active Vested Employees 2,661,478,024 2,567,039,982 2,375,650,390 2,167,004,834 2,070,275,394 1,777,422,211 Total Present Value Vested Liabilities $ 5,891,183,919 $ 5,804,153,545 $ 5,533,269,229 $ 5,198,513,891 $ 4,997,390,603 $ 4,556,627,681 Actuarial Value of Assets $ 6,864,617,313 $ 6,228,785,199 $ 5,651,600,468 $ 5,046,274,566 $ 4,510,609,528 $ 3,966,433,764 Unfunded Vested Benefits Liability $ – $ – $ – $ 152,239,325 $ 486,781,075 $ 590,193,917 For Plan Year Ended June 30: 2019 2018 2017 2016 2015 2014 Benefits Paid and Expenses Pensions paid $ 382,770,256 $ 370,266,198 $ 359,523,524 $ 345,141,002 $ 332,272,776 $ 326,283,069 Administrative expenses 7,296,972 8,275,948 7,097,014 7,204,501 6,130,759 6,388,537 Total Deductions $ 390,067,228 $ 378,542,146 $ 366,620,538 $ 352,345,503 $ 338,403,535 $ 332,671,606 Investment Income and Employer Contributions Net appreciation of fair value of investments $ 266,330,056 $ 338,038,855 $ 509,393,834 $ (85,740,261) $ 72,162,853 $ 510,272,688 Interest 26,922,354 21,826,028 17,954,371 16,370,129 15,834,497 15,089,587 Dividends from investments 87,657,308 74,604,281 76,394,246 58,768,496 55,539,098 52,294,885 Less investment expense (8,048,763) (7,982,824) (8,174,356) (8,345,354) (5,477,489) (5,612,128) Total Income Gain (Loss) $ 372,860,955 $ 426,486,340 $ 595,568,095 $ (18,946,990) $ 138,058,959 $ 572,045,032 Contributions from Employers 607,723,180 609,745,037 611,279,468 557,846,818 539,999,599 533,467,537 Other Income 1,555,717 1,013,049 1,034,696 746,865 970,216 727,048 Total Additions $ 982,139,852 $ 1,037,244,426 $ 1,207,882,259 $ 539,646,693 $ 679,028,774 $ 1,106,239,617 Net Increase 592,072,624 658,702,280 841,261,721 187,301,190 340,625,239 773,568,011 Net Assets Available for Benefits: Beg. of Year $ 6,261,133,133 $ 5,602,430,852 $ 4,761,169,131 $ 4,573,867,941 $ 4,233,242,702 $ 3,459,674,691 End of Year $ 6,853,205,757 $ 6,261,133,132 $ 5,602,430,852 $ 4,761,169,131 $ 4,573,867,941 $ 4,233,242,702 S TAT I S T I C A L I N F O R M AT I O N 67 67 PACIFIC MARITIME ASSOCIATION

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