The official publication of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers, AFL-CIO, CLC THE REPORTER JANUARY-MARCH 2017 A FF C ILIA , CL Volume 56 | Number 1 TED ~ AFL-CIO BREAKING GROUND IN SALT LAKE CITY Here’s one more thing Union families can share. Save with AT&T Wireless and Union Plus. Just because you’re union, you can save 15% on select wireless service from AT&T, the only national wireless provider that’s union—like you. You can save whether you’re already an AT&T customer, or switching to all-union AT&T. Plus, if you use a Union Plus Credit Card on qualifying purchases, you’re eligible for up to $250 in rebates. For union members, this is an easy call. Learn more at UnionPlus.org/ATT All program plans for new and existing customers may require a new two-year contract. This offer cannot be combined with any other discounts. Qualifying monthly data plan required. THE contents JANUARY-MARCH 2017 Volume 56, Number 1 features: NEWTON B. JONES International President and Editor-in-Chief WILLIAM T. CREEDEN IVP HAGGERTY RETIRES, International Secretary-Treasurer IEC ELECTS FULTZ TO OFFICE INTERNATIONAL VICE PRESIDENTS Lawrence McManamon, Great Lakes Joe Maloney, Canada J. Tom Baca, Western States Warren Fairley, Southeast D. David Haggerty, Northeast EDITORIAL STAFF 6 Mike Linderer LOCAL 11 WINS NACBE Managing Editor SAFETY AWARD Emily Allen Writer-Editor Mary Echols 11 Publications Specialist LOCAL 627 HOSTS CODE TRAINING The Boilermaker Reporter ISSN No. 1078-4101 is the official publication of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers, AFL-CIO/CLC. It is published quarterly to disseminate information of use and interest to its members. Submissions from members, local lodges, and subordinate or affiliated bodies are welcomed and encouraged. This publication is mailed free of charge to active members and retired members holding a Retired 18 Members Card. Others may subscribe for the price of $10 for three years. Standard Mail (A) postage paid at Kansas City, Kan., and additional mailing offices. Web site: www.boilermakers.org departments: CanadaPost Agreement : PM 41892512 POSTMASTER: Send address changes to: COMMENTARY ...................................... 2 [email protected] EDUCATION & TRAINING .................... 18 The Boilermaker Reporter 753 State AvenueSuite 565 LOCAL NEWS ........................................28 Kansas City, KS 66101 IN MEMORIAM.....................................36 (913) 371-2640; FAX (913) 281-8110 Union Printed in the U.S.A. BREAKING GROUND ON THE J.G. COOKSEY on the cover: TRAINING CENTER IN SALT LAKE CITY, UTAH, For more articles, photos, video are, left to right, IVP J. Tom Baca, IST Bill Creeden, WSJAC Coordinator Collin Keisling, IR Jim and resources, visit us online at Cooksey, Bank of Labor President Bob McCall, www.boilermakers.org AZZ/WSI Field Project Manager Hunter Hastings, AZZ/WSI VP of Operations Chris Dixon, Lincoln Electric Technical Trainer Dan Klingman and ARB VP and WSJAC Chairman Larry Jansen. The facility is the first of eight being planned in the Western States to meet increasing demand for qualified welders. LIKE US SUBSCRIBE TO US SEE STORY 12 THE REPORTER © 1 COMMENTARY Preserving national pension involves us all BOILERMAKERS.ORG © “The rehabilitation plan will not affect the benefits current retirees receive and will not impact the accrued benefits of active NEWTON B. JONES members at normal retirement age.” January-March 2017 International President Trustee actions will help address members at normal retirement age. Those benefits will fund imbalance remain exactly as they were prior to the rehabilitation plan. What will change are “elective” provisions of the plan, IN JANUARY, TRUSTEES of the Boilermaker-Blacksmith such as early retirement and options for how pensions are National Pension Trust took steps to address an emerging paid out (with certain grandfathered exceptions). threat to the fund. Essentially, the problem is one of too These changes will positively impact the fund imbal- little money going into the fund for the amount being paid ance without the need to increase pension contributions out in benefits. If left uncorrected, this imbalance could, or reduce the current benefit formula. The changes have no over time, trigger government intervention with poten- impact on our contractors. tially negative consequences for plan participants. It’s important for all participants to understand why these To address the imbalance, the trustees have elected — changes are necessary and how we can further strengthen based on the expert advice of our actuaries — to take the the pension fund for current and future participants. I will proactive step of treating the fund as if it were in the “red address these topics below. On the pages following my col- zone” (although it has been certified in the “yellow zone” umn is a diagram of the pension trust and its relationships for 2017). Zone status is a way of measuring the funding with professional advisory organizations along with a page percentage of a pension plan, with green being the best addressing common questions. funded and yellow and red requiring corrective action. By So that participants are better informed about the pen- treating the fund as if it were in the red zone, the trustees are sion changes, the National Funds Office is developing an allowed to make changes not available in the yellow zone. informational video that will soon be available online at These changes are projected to move the fund back into the BNF-KC.com. The video will also be distributed to each yellow zone in 2018 and on a “rehabilitation plan” to the lodge that represents plan participants. In addition, the green zone. Funds Office will mail documents describing the plan While the International Executive Council (IEC) has changes to every participant. no legal authority over ANY trust fund, nor can the IEC legally influence trust fund trustees, the officers of our Why plan changes are necessary Brotherhood fully support the decision of the trust- ees. They’ve properly exercised their responsibility THE HEALTH OF our national pension plan depends on under the Employee Retirement Income Security Act contributions earned by our members (paid monthly by (ERISA), the law that governs trust funds and trustees, employers) and investment returns on plan assets. These and acted in the best interests of the plan participants two funding sources fluctuate due to economic, regulatory, and the plan itself. demographic, political and other factors. The choices facing the trustees were extraordinarily tough As our members know too well, the Great Recession and their decisions difficult. The rehabilitation plan they of 2008 had a major impact on our plan (and many oth- chose will not affect the benefits current retirees receive ers across North America). So, too, have environmental and will not impact the accrued benefits of active regulations under the Obama Administration EPA. Those 2 © THE REPORTER FROM OUR INTERNATIONAL PRESIDENT January-March 2017 regulations, together with cheap, plentiful natural gas, have Services and Assistant Director – Construction Sector effectively halted the construction of new coal-fired power Operations. Tim Simmons, BM-ST for Local 108, is our plants and contributed to the closure of hundreds of exist- new Director – National Recruitment Services and Assis- ing plants. The restrictions on new coal-fired plants and the tant Director – Construction Sector Operations. These two shuttering of so many others have cost our members mil- Directors will focus on growing our membership and ensur- lions of man-hours. ing our field construction members have the appropriate © In fact, Boilermaker man-hours have trended downward training to meet the needs of industry. BOILERMAKERS.ORG since 2009. At the end of 2016, one active Boilermaker was paying into the fund for every 2.4 retirees receiving benefits. We must work together to safeguard Last year, the plan paid out $851 million while contribu- our pension tions totaled just $428 million. And return on investments BOILERMAKERS HAVE LONG enjoyed a robust and has not made up the difference. reliable pension plan that has set the standard in our Contributing to the shortfall is the simple fact that industry. However, over the last decade, economic, regu- people are living longer — and that means the fund is latory and other forces have placed substantial pressures paying out benefits for more years, on average, than in pre- on our fund. Thanks to an exceptional board of trustees vious times. While of course a longer life is a wonderful (appointed in equal numbers from our contractors and the thing, increased years of payout do place additional strain union) we have responded appropriately to preserve our on the fund. plan for current and future retirees. But there is another major reason for the shortfall that These trustees carry a heavy legal burden to safeguard is our own fault as a union. On too many projects, we are the plan, and they take this burden seriously. They monitor giving up Boilermaker work to other trades due to a lack of the fund’s health continually and, as an independent body, available Boilermaker craftsmen and women. Every time make all decisions on modifying the fund, relying on the another trade performs our work, the pension contribution advice of actuaries and investment managers. that would have gone into our fund instead goes into that Our National Funds Office likewise includes dedicated of another union. Of course, we sometimes fill in gaps for professionals who ensure that the trustees’ decisions are other trades, but our Funds Office reports that we give up carried out accordingly. substantially more contributions than we take in. We need a collective effort involving all our participating We are not alone in the shortage of skilled craftsmen, locals to restore our fund to full health.