Pacific Maritime Association

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 70 1 ⁄2. The in-service distribution rules under the Plan were eliminated for participants reaching age 70 1 ⁄2 after the end of the 2002 calendar year. At the end of 2016, the Plan was paying $29,927,908.30 per month to 8,735 benefit recipients. ILWU-PMA Welfare Plan The ILWU-PMA Welfare Plan provides comprehensive health care and related benefits to qualified active and retired participants and their qualified dependents and survivors. Plan Funding The Plan is primarily funded by PMA through employer assessments on payroll hours and tonnage. 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 customarily 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 CSDI Supplementation and the Non-Industrial Disability Supplement benefits. Tenure of the Agreement The Plan runs concurrently with the 2014-2019 Pacific Coast Longshore and Clerk's Agreement. Unless provided to the contrary, extension or renewal of the Pacific Coast Longshore and Clerks' Agreement extends the Plan, and the Plan remains 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. I N D U S T R Y B E N E F I T S 39 P A C I F I C M A R I T I M E A S S O C I A T I O N NUMBER OF PENSION BENEFIT RECIPIENTS BY YEAR Normal/ Dis- In- Sub- Post- Pre- Sub- Early ability Service QDRO total Retire Retire total Total 2007 3,763 1,055 83 247 5,148 2,831 519 3,350 8,498 2008 3,750 1,018 71 253 5,092 2,778 530 3,308 8,400 2009 3,996 999 60 278 5,333 2,712 545 3,257 8,590 2010 3,997 983 54 302 5,336 2,676 553 3,229 8,565 2011 3,974 970 45 314 5,303 2,629 571 3,200 8,503 2012 4,076 964 36 331 5,407 2,581 584 3,165 8,572 2013 4,105 959 27 351 5,442 2,561 604 3,165 8,607 2014 4,113 950 26 365 5,454 2,517 613 3,130 8,584 2015 4,149 945 22 384 5,500 2,566 623 3,189 8,689 2016 4,192 968 17 402 5,579 2,526 630 3,156 8,735 SURVIVING SPOUSES PENSIONERS (thousands) 1996 2001 2006 2011 2016 0 4 6 8 Surviving Spouses Pensioners 10 2 Number of Pension Benefit Recipients (thousands) During recent years, employers have intensified their focus on the administration of the ILWU–PMA health plan. This has included a switch to a new third-party administrator, which has led to more rigorous review of medical bills and the identification of fraud and abuse. As a result of these and other efforts, at least 52 providers have been excluded from billing the plan, and medical care costs are nearly 40 percent below what they would have been had they grown at the rate of health care inflation, as expenses now more accurately represent the actual services rendered to ILWU members. As of the printing of this annual report, federal prosecutors have convicted several individuals for taking part in schemes to defraud this plan. Prosecutors estimated that one such scheme accounted for more than $50 million in fraudulent claims to this and other health plans, in which providers submitted bills for services not rendered, mislabeled procedures that should not have been covered, or sought compensation for medically unnecessary services. The ILWU-PMA health plan is among the most generous union health plans in the nation, with fully paid medical care with no premiums and only very limited deduct- ibles. Prescription drugs are provided for $1. Employers are committed to continuing to provide comprehensive health benefits – and to ensuring that providers are accu- rately billing the plan only for services that have been provided and are covered. Health Fraud and Abuse Investigations Continue Number of Pension Benefit Recipients

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