Issue link: https://pma.uberflip.com/i/1495430
WORLD-CLASS BENEFITS AND WAGES FOR ILWU MEMBERS The ILWU benefits package includes: • Comprehensive healthcare coverage with no premiums for both actives and retirees: 100% in-network medical coverage, prescription drug coverage with a $1 copay, vision, dental, alcohol and substance use disorder treatment and life insurance; • A pension plan up to $95,460 annually and a 401(k) savings plan with employer contributions; • Disability benefits covering up to $1,250 per week for up to 52 weeks; • Up to 6 weeks paid vacation per year; • 15 holidays (including 13 paid holidays) per year; and • Guaranteed pay for up to 40 hours of work per week. Stabilizing Overall Benefit Costs Over the past decade, benefit costs have increased from approximately $95,000 per active registrant to a high of $113,604 in 2017/2018. Due to strong fiscal management, those costs have declined to a level of $100,534 in 2022. For 2022, the overall benefit costs totaled nearly $1.6 billion. Flattening the Curve on Total Welfare Costs Total welfare costs have remained below the projected trend each year, with the curve flattening out due to many factors, including intensive focus on management and oversight to reduce fraud and abuse. Fully Funded Pension Plan The industry pension plan – the ILWU-PMA Pension Plan – is world-class, and has seen major upgrades since the seminal technology agreement of 2002. Since 2014, asset growth outpaced liabilities and funding percentage improved from 70% to over 100%, even with a nearly 20% increase in benefit levels. The 2022 maximum yearly benefit is $95,460. At the end of calendar year 2022, the Plan paid $37.4 million per month to 9,174 benefit recipients. As of 2019, the Pension Plan became fully funded. The Plan is non- contributory for the participants and is completely funded by employer contributions. Refer to pg. 41 for more information. 401(k) Plans COVID-19 Sick Pay Marine Clerk Work Opportunity CFS Fund Industry Travel Pay Guarantee Plan Holiday Cost and Taxes Vacation (Including Employer Taxes) Pension (Employer Contribution) Welfare Plan (Cost + Expenses) $0 $0.4 $0.8 $1.6 $1.2 14/15 12/13 13/14 15/16 16/17 09/10 10/11 11/12 17/18 18/19 19/20 20/21 21/22 07/08 08/09 05/06 06/07 04/05 Billions 401(k) Plans COVID-19 Sick Pay Marine Clerk Work Opportunity CFS Fund Industry Travel Pay Guarantee Plan Holiday Cost and Taxes Vacation (Including Employer Taxes) Pension (Employer Contribution) Welfare Plan (Cost + Expenses) 401(k) Plans COVID-19 Sick Pay Marine Clerk Work Opportunity CFS Fund Industry Travel Pay Guarantee Plan Holiday Cost and Taxes Vacation (Including Employer Taxes) Pension (Employer Contribution) Welfare Plan (Cost + Expenses) 14/15 12/13 13/14 15/16 16/17 09/10 10/11 11/12 17/18 18/19 19/20 20/21 21/22 Total Benefits Cost 2004/05 through 2021/22 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 120% 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 7/1/16 1/1/17 7/1/17 1/1/18 7/1/18 1/1/19 7/1/19 1/1/20 7/1/20 1/1/21 7/1/21 1/1/22 7/1/22 1/1/23 Present Value of Accrued Non-Forfeitable Benets Funding Percentage ILWU-PMA Pension Plan Funding Percentage & Contribution $2000 $1800 $1600 $1400 $1200 $1000 $800 $600 $400 $200 $0 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Indemnity Plan Indemnity Projected Trend Total Welfare Projected Trend HMO Plans All Other ILWU-PMA Actual vs. Projected Total Welfare Costs (Millions) Billions 18 18 2022 ANNUAL REPORT