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U.S. Domestic Maritime Industry, Jones Act Trades Sustain Thousands of Jobs, Generate Billions in Economic Impact in Alaska and Washington State

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U.S. Domestic Maritime Industry, Jones Act Trades Sustain Thousands of Jobs, Generate Billions in Economic Impact in Alaska and Washington State In This Issue: DC Plan formula under trustee review; DB Plan relief strategy advances — Page 2 AMO membership drives contract negotiations — Page 3 Volume 49, Number 6 June 2019 U.S. domestic maritime industry, Jones Act trades sustain thousands of jobs, generate billions in economic impact in Alaska and Washington State In May, the Alaska Federal Delegation joined (TI), the Jones Act fuels a strong domestic the American Maritime Partnership (AMP) in maritime industry in Alaska and across the announcing a 44 percent increase in jobs in region. The industry employs more than the domestic maritime industry in Alaska. 6,500 individuals, produces $1.98 billion Also in May, Senator Maria Cantwell for the local economy, and generates $469 (D-WA) joined business and government million in worker income in Alaska alone. leaders from around the region at the Seat- “Alaska is a major maritime state tle Maritime Festival Breakfast to celebrate with more coastline than all of the other the importance of the domestic maritime states’ coastlines combined. Our navigable industry, sustaining 22,500 local jobs, and waterway network of over 5,400 miles is to announce the 34 percent growth of Jones Act — Continued on Page 3 domestic maritime jobs created in the state of Washington. At left: The North Star is one of two of Orca According to the findings of a new re- Class ships operated by TOTE Services, port conducted by PricewaterhouseCoopers Inc. in regular Jones Act cargo service (PwC) on behalf of Transportation Institute between Washington State and Alaska. Observing National Maritime Day aboard the M/V Honor On May 22 at 1230 hours local, while at sea from Charleston to Bremerhaven, the M/V Honor held an onboard National Maritime Day ceremony. The all-hands event included learn- ing about the history of National Maritime Day from Third Mate Bucholz and hearing this year’s Presidential Proclamation read by both Kings Point and Maine Maritime Academy cadets. We ended with eight bells struck on the ship bell followed by a moment of silence. — Captain Shawn Hagerty, master, M/V Honor PagePage 6: 8: Captain New Safety Mills and honored Education at National Plan Course Maritime Schedule Day and ceremony Updates Copyright © 2019 American Maritime Officers H [email protected] 2 June 2019 to sustained resupply and reinforcement of Defined Contribution Plan formula U.S. Armed Forces in overseas conflict. Once in place, the exemption we seek would provide an immediate and effective under trustee review; Defined Benefit check on this shortage by encouraging AMO members frustrated by retirement cir- cumstances to remain in the industry and Plan relief strategy moves on two fronts continue to stand ready for military support services when the alarm sounds. This is a reasonable approach, mod- The joint union-employer trustees of zone” funded agreed to increase earned benefits “frozen” eled after specific public sector pension the American Maritime Officers Defined status of better in place when the Plan was suspended rule exemptions for “first responders” — Contribution Plan have agreed in principle than 80 percent as deficient under the federal Pension firefighters, police officers and emergency to “reconfigure” the rules governing the strengthens as Protection Act in December 2009. AMO medical technicians. calculation of retirement benefits earned projected over the Pension Plan personnel are calculating this Deep-sea, Great Lakes and inland from the Plan. next two-to-four one-time increase at various percentage waters AMO members are reminded that the Under the potential rule revision, years — a period rates. The actuaries will determine whether state of the defined benefit AMO Pension amounts deposited into each partici- in which the AMO the increase keeps the AMO Pension Plan in Plan is influenced by day-to-day investment pant’s tax-deferred DC Plan investment Pension Plan is the “green zone.” market performance, by interest rates and account would be determined exclusively expected to reach Horizon Actuarial Services — which by actuarial assumptions and projections. by length of service at sea under AMO full funding. by law must submit any AMO Pension Plan It is also important to note that fed- contract. A participant’s age would no In both cases, the trustees’ intent remedial measure to the Internal Revenue eral law requires that monthly benefits now longer be a factor. is to apply AMO Defined Contribution Plan Service for approval — also began analyzing paid to AMO retirees and their survivors be A concern among the trustees is reforms fairly and responsibly. a proposal under which active vested AMO sustained at current levels, and that obliga- that removing age from the equation could The trustees applied initial reform members with at least 20 years of service tions to “inactive vested” individuals — those penalize senior engine and deck officers in of the AMO Defined Contribution Plan would have the option of collecting their no longer employed under AMO contract but key billets on ships operating under govern- three years ago, when they ended ca- earned benefits from the AMO Pension Plan due benefits at age 65 — are met. ment contract and in commercial services. reer-long DC Plan credits for participants while continuing to work. These benefit All deep-sea, Great Lakes and inland This review of the AMO Defined who had qualified for and received one- payments would be rolled over directly to waters AMO members will be advised of all Contribution Plan benefits formula follows time in-service lump-sum payouts from each member’s tax-deferred AMO Pension developments as we proceed — specifically, AMO Plans trustee meetings at AMO head- the AMO Pension Plan before this option Plan Money Purchase Benefit account for the timing and the mechanics of each new quarters in Dania Beach the week of May was eliminated in 2009. growth through return on MPB investment. or pending pension relief proposal — and 20. AMO Plans personnel are completing an Under the 2016 rule revision, in-ser- This would require an exemption all are free to contact me with questions or analysis of the potential impact of the rule vice lump-sum pension recipients earn DC from IRS rules prohibiting the direct trans- concerns. I can be reached toll free at 800- change on all DC Plan participants under Plan credits only from the dates of their fer of defined benefit payments to defined 362-0513, on the office line at 954-921-2221 varied scenarios. AMO Pension Plan buyouts, instead of from contribution accounts — an exemption we (Ext. 1001) or on my cell at 954-881-5651. In a parallel development, Horizon Ac- the dates on which they began covered believe can be secured in the legitimate If you call my cell and I can’t take the call tuarial Services LLC — actuarial consultants employment as AMO members. interest of national security. right away, I will get back to you, but I ask to AMO Plans — is determining whether Meanwhile, a strategy to ease the As we all know, there is a perilous and that you leave a voicemail. some employer contributions to the defined 10-year defined benefit AMO Pension growing shortage of the civilian American benefit AMO Pension Plan can be diverted Plan crisis within the limits of federal law merchant mariners the government relies Paul Doell safely to the AMO Defined Contribution Plan remains in focus. on exclusively for defense shipping services National President as the AMO Pension Plan’s certified “green The AMO Pension Plan trustees in distant emergencies, from mobilization American Maritime Officers AMO members attend meetings of union’s National Executive Board, AMO Plans Board of Trustees Members of American Maritime Officers attending meetings of the AMO National Executive Board and AMO Plans Board of Trustees in May at AMO head- quarters in Dania Beach, Fla. included Christopher Gillard, Robert Ring, Steven Andrews, Felix Nunez and Peter ‘Tank’ Kinsey. With them are AMO National President Paul Doell and AMO National Executive Vice President Mike Finnigan. American Maritime Officer (USPS 316-920) Official Publication of American Maritime Officers 601 S. Federal Highway Dania Beach, FL 33004 (954) 921-2221 POSTMASTER—Send Address Changes To: American Maritime Officers: ATTENTION Member Services Periodical Postage Paid at P.O. Box 66 Dania Beach, FL and Additional Mailing Offices ISO 9001:2015 Dania Beach, FL 33004 Published Monthly Certificate No. 33975 www.amo-union.org AMERICAN MARITIME OFFICER June 2019 3 AMO membership drives contract negotiations By Mike Finnigan Thomas, Todd Christensen and Willie Barrere, respectively, visiting the vessels covered National Executive Vice President by the contract we will be negotiating when possible before the negotiations begin is an additional and important part of our process. They bring back current information from the Having completed several contract negotiations since the start of the year — Argent Marine, officers to the contract negotiating committee, adding to the information and input of the American Roll-on Roll-off Carrier (TOTE Services), Seabulk Tankers, ECO-Tankers, and In- committee members who work in the fleet. trepid Personnel and Provisioning (American Petroleum Tankers) — I can say for certain the The negotiating committees have been nothing less than professional and up front American Maritime Officers rank-and-file negotiating committees from the respective fleets with the company representatives and, by participating in the process, can see firsthand the form the driving force in our union’s contract negotiations and the agreements we have been amount of work that goes into contract negotiations. able to achieve. On a separate but related project, as each contract comes up for negotiation, AMO is The AMO members on each committee are directly involved in all aspects of contract working with labor lawyers as we open our existing collective bargaining agreements for negotiations and all have a seat at the table.
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