Pacific Maritime Association

I N D U S T R Y B E N E F I T S 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 40-hour week at the basic straight time hourly wage ($40.93 per hour for Class "A" longshore, effective July 1, 2017, or $1,637.20 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 32-hour week ($1,309.76). 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 PGP until after one year of registration. The contingent PGP liability for registrants for 2017/2018 is $30,000,000. 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. The foremen's plan guarantees weekly pay equivalent to a 40-hour week at the foreman straight time rate. 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. Participants age 50 and older may 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 paychecks into the 401(k) Plan. Effective January 1, 2016, the Plan offers a Roth contribution option. Each year, the Employers contribute 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. An Evergreen ship at the Port of Los Angeles. PAY GUARANTEE PLAN BENEFITS AND EXPENSES Contract Year Ended June 30 Longshore Walking Bosses and Clerks and Foremen 2013 $3,333,050 $183,492 2014 $3,060,768 $141,652 2015 $2,750,791 $167,316 2016 $12,499,929 $339,243 2017 $9,811,767 $223,621 Includes payments for benefits, taxes, and administrative expenses. Data obtained from Audited Financial Statements. 45 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

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