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MARINE
ENGINEERS'
BENEFICIAL
ASSOCIATION
(AFL-CIO)
"On
Watch in Peace and War Since 1875"
MEBA
TELEX
TIMES
SEPTEMBER
15,
2006
The Official Union Newsletter
NUMBER
37
In
this issue...
Port security bill passes Senate...CMES 40th Anniversary...Corcoran golf
tournament approaches...Lump sum factors released...Wide load! Pound after
pound, we throw our weight around and tip the scales with all the roly-poly
maritime snacks you can stomach. Our big-boned, butterball edition fattens you
up with a supersized second helping of MEBA items and weighs in with a
pleasantly plump belly-full of news that's tons of fun. Too big for our
britches, the Telex Times is large and in charge!
PORT
SECURITY BILL HEADED TO CONFERENCE COMMITTEE
The U.S. Senate unanimously checked off on
a new port security bill that would inject almost $6.7 billion towards battening
up the hatches at seaports over the next six years.
Senate Commerce Committee co-Chairs Ted Stevens (R-AK) and Daniel Inouye (D-HI)
along with the Homeland Security Committee Chair Susan Collins (R-ME) and
Ranking Member Joe Lieberman (D-CT) were largely responsible for the success of
the measure. The Senate bill passed on Thursday afternoon in a 98-0 vote. The
House passed its version of the bill back in May by a vote of 421-2.
Next, a conference committee will be appointed and meet to hash out the many
differences between the two bills before a single version is put before the
President for his signature.
Sen. Stevens declared that, "This bill will strengthen and enhance security at
our land and sea ports and improve our overall maritime transportation security
strategy. The events of September 11th forever altered the course of our nation.
We all know and realize that. It was a stark reminder that we must do everything
possible to prevent those who wish to harm Americans from carrying out their
missions. To prevent future attacks, it is necessary to secure our ports. And
this bill is a major step forward."
The bill strengthens maritime transportation and port security, improves
security strategy and enhances communications between the Department of Homeland
Security and key stakeholders. The legislation also addresses needed
improvements in the maritime sector, such as identifying a lead agency in the
case of a maritime transportation incident or disruption as well as developing a
plan to resume trade in the case of such an event. The bill expedites the
nationwide launch of the Transportation Worker Identification Credential (TWIC),
and would require security checks for those working in or around U.S. ports, and
establishes an interagency operational center for port security to facilitate
coordination and communication between federal, state and local officials.
It also enhances the security of cargo transiting through the international
supply chain, and requires a plan to examine containers entering the U.S.for
radiation and Weapons of Mass Destruction. Additionally, the legislation
improves cargo security by increasing the number of random searches using the
Automated Targeting System (ATS) and Container Security Initiative (CSI)
programs to track international cargo that may be a threat to America. The bill
authorizes the establishment of a voluntary program, Customs-Trade Partnership
Against Terrorism (C-TPAT) to strengthen the international supply chain and
border security, facilitate the movement of secure cargo and provide benefits to
eligible participants. It establishes several new offices within the Department
of Homeland Security to coordinate cargo policy and to assure that appropriate
emphasis is placed on security and trade aspects inherent in the maritime
transportation sector.
MEBA
SCHOOL'S 40th ANNIVERSARY COMING UP
The Calhoon MEBA Engineering School (CMES)
marks its 40th year of operation this next week. It was on September 21, 1966
that the first cadet course kicked off on two floors of the old Emerson Hotel in
Baltimore, MD. Needing more room to operate, the facility was soon moved to 9
Light Street in Baltimore where it remained until the 1980s. At that point, as
the cadet program came to a close, operations were shifted to Easton, MD where
it remains today.
The School eventually evolved into the foremost continuing education facility
for licensed officers allowing the MEBA to be the finest source of seagoing
labor today.
The new Marine Officer, which will be available in the Union halls next week,
spotlights the School upon this momentous anniversary. The magazine includes
interviews with each of the Directors spanning the School's years of operation.
Mr. Roy Luebbe was the longest serving Director having overseen the startup in
1966. He continued making invaluable contributions for decades finally retiring
in 1986. Gil LaDana, Larry O'Toole, Peter Hammond, Henry Phillips and current
Director Joyce Matthews followed in his footsteps and all have proved worthy
successors in heading up a facility that is considered the "Crown Jewel" of the
MEBA. Happy Anniversary CMES!
CMES
TAKES PART IN FALL MERPAC MEETING
The Calhoon MEBA Engineering School sent
representatives to the Fall 2006 Meeting of the Merchant Marine Personnel
Advisory Committee (MERPAC). It was held at the Maritime Institute of Technology
and Graduate Studies (MITAGS) in Linthicum Heights, MD this week.
CMES took part in Task Statement 57 Working Groups, which addressed a national
training program for operational and management level officers including
integration of the STCW Code into the USCG license examination process. The
School also monitored the full and formal MERPAC committee conference, held on
Wednesday, September 13, 2006.
9/11
VIDEO WITH MEBA MEMBERS IS ONLINE
As part of the 5th anniversary of September
11, 2001, the Maritime Administration has posted a video on its website
commemorating the maritime heroes of 9/11. MEBA members Jim Parese and Michael
O'Toole were featured in the video. Both men played large roles in rescue and
relief operations in their capacities aboard the Staten Island ferries.
MarAd points out that more Americans are learning about the massive maritime
response on that terrible day and the days and weeks afterward that helped
evacuate hundreds of thousands of people and proved integral in recovery and
support operations.
MarAd's ten minute video that was originally presented on Maritime Day in 2002
is still available on their website. You can access it at
www.marad.dot.gov.
HEARING
FOR DOT NOMINEE
The Senate Commerce Committee is moving
quickly to review the nomination of Mary Peters to be the next Secretary of
Transportation. It has scheduled a confirmation hearing to consider her
nomination on Wednesday at 2:30. Peters served as Administrator of the Federal
Highway Administration from 2001 to 2005 and prior to that spent three years
directing the Arizona Department of Transportation.
CORPUS
CHRISTI OFFICE ALTERS HOURS
Beginning on Monday, Sept. 18, 2006, MEBA's
office in Corpus Christi will be open from 12:00-2:00 each weekday. Previously,
Rep. Bobi Lewis was available there from 11:30-1:30. The phone number there is
(361) 882-7059.
CORCORAN
MEMORIAL TOURNAMENT IS NEXT FRIDAY
MEBA members again are gearing up to
support a fallen MEBA Brother once again as the 5th annual Jay Corcoran Memorial
Golf Tournament approaches. Jay was a popular MEBA member for 22 years who
sailed out of the West Coast. On September 11, 2001, he was on his way back to
catch his ship, the APL THAILAND, when his airplane was hijacked and flown into
the World Trade Center. Since then, a memorial golf tournament has been set up
in his name to benefit Norwell, Massachusetts high school students. Norwell was
Jay's hometown. The tournament takes place on September 22 at Bay Pointe Country
Club in Onset, Massachusetts. Members can sponsor holes for the tournament at
$100 apiece.
Checks should be made payable to the Jay Corcoran Memorial Scholarship
Foundation and mailed to Tom Piepenbrink, 46 Higgins Rd., Kingston, MA 02364.
For more information call Tom at (781) 585-2667, Rick Lundstedt at (781)
585-3318 or MEBA Boston Union hall Rep. Bill Campbell at (617) 261-2338. Bill
can be e-mailed at wcampbell@d1meba.org.
PLANS
OFFICE RELEASES LUMP SUM FACTORS
Statutory Limit for Lump Sums Changed
Retroactive to January 1, 2006 During calendar years 2004 and 2005, pension
plans, including the MEBA Pension Trust, had to use interest rates required by
the Pension Funding Equity Act of 2004 (PFEA) in order to determine Section 415
caps for lump sum pensions. Those statutorily required interest rates resulted
in lump sum pensions that were capped out at lesser amounts than otherwise would
have been allowed by most pension plans, including the MEBA Pension Trust. The
PFEA expired on its own terms on December 31, 2005. At that time, pension plans,
including the MEBA Pension Trust, were required to determine Section 415 caps on
lump sum pensions based on the methodology that was in place before the PFEA had
gone into effect. For the MEBA Pension Trust, that has meant that the statutory
limit in 2006 has been based on the actual GATT interest rate - 4.46% - for the
Plan's 2006 lump sums. Lump sum payments made to date in 2006 have been
calculated by multiplying the Section 415 limited annuity by the Plan's 2006
lump sum factor. No further reduction was applicable. As a general rule, this
has meant that the Section 415 caps for lump sum pension have been higher in
2006 that they were in 2004 and 2005.
That has now changed. The Pension Protection Act of 2006, which became effective
on August 17, 2006, retroactively reinstates the old PFEA-required interest
rates for determining Section 415 caps on lump sum pensions. This retroactive
change will, as a general rule, result in more-quickly capped lump sum pensions,
such that a participant's Section 415 capped lump sum pension amount under the
new legislation will be less that what it would have been prior to the enactment
of this legislation. This also means that those members whose annuities are
close to the 2006 Section 415 limits and not subject to reduction may have their
lump sums limited.
GATT
Interest Rate - Lump Sum Factors
The Plan's Actuary has advised that the
GATT interest rate for August 2006 was 5.0%. A final determination will be made
when the GATT interest rates for September through December are known. This rate
is higher than last year's rate of 4.46%.
This following table contains the lump sum information for 2006 as adjusted for
the recently passed legislation as well as preliminary lump sum factors for 2007
based on the 5.0% interest rate.
The first column of the table represents the Age Nearest Retirement, the second
is the 2006 Lump Sum Factor per $1,000 of Monthly Benefit, the dollar amount in
the third column is the 2006 Annual Annuity 415 Limit. The fourth column is the
2006 Annual Lump Sum 415 Limit. Next is the 2006 Lump Sum Annuity equivalent for
2006. The final column represents the 2007 Preliminary Lump Sum Factors.
80 85.21
$621,019 $4,186,152
$589,529 82.91
79 89.38
$564,474 $3,982,501
$534,683 86.87
78 93.64
$513,782 $3,788,701
$485,523 90.90
77 97.97
$468,308 $3,604,283
$441,476 94.98
76 102.34 $427,483
$3,428,800 $402,048
99.09
75 106.71 $390,953
$3,261,828 $366,806 103.19
74 111.06 $358,200
$3,102,965 $335,274 107.27
73 115.39 $328,782
$2,951,825 $306,975 111.30
72 119.68 $302,294
$2,808,040 $281,554 115.29
71 123.93 $278,374
$2,671,258 $258,654 119.23
70 128.13 $256,773
$2,541,141 $237,990 123.11
69 132.25 $237,235
$2,417,371 $219,345 126.90
68 136.31 $219,493
$2,299,640 $202,448 130.63
67 140.31 $203,336
$2,187,657 $187,099 134.29
66 144.29 $188,556
$2,081,140 $173,079 137.92
65 148.25 $175,000
$1,979,821 $160,255 141.53
64 152.20 $175,000
$2,027,605 $159,863 145.11
63 156.11 $175,000
$2,074,822 $159,489 148.65
62 160.00 $175,000
$2,121,447 $159,108 152.16
61 163.84 $161,840
$2,004,270 $146,797 155.61
60 167.62 $149,925
$1,895,199 $135,678 159.01
59 171.35 $139,311
$1,793,371 $125,593 162.34
58 175.00 $129,271
$1,698,109 $116,441 165.59
57 178.58 $120,296
$1,608,872 $108,111 168.77
56 182.08 $112,094
$1,525,120 $100,513 171.88
55 185.50 $104,581
$1,446,350 $93,564
174.89
54 188.82 $97,686
$1,372,135 $87,202
177.81
53 192.05 $91,345
$1,302,115 $81,361
180.63
52 195.18 $85,504
$1,236,017 $75,992
183.36
51 198.21 $80,113
$1,173,570 $71,050
185.99
50 201.15 $75,129
$1,114,513 $66,488
188.53
FORMER
CG COMMANDANT KIME IS DEAD AT 72
Adm. John William Kime, a former U.S. Coast
Guard Commandant who was passionate about maritime safety and environmental
protection issues, died this week at 72 after a valiant struggle with cancer.
Kime served as Commandant of the Coast Guard from 1990 to 1994, where he oversaw
implementation of the landmark Oil Pollution Act of 1990 and established the
position of drug interdiction coordinator. During his Coast Guard career, he
served afloat in deck and engineering positions and ashore in the law
enforcement, marine safety and environmental protection fields. Kime will be
buried with full military honors at Arlington National Cemetery.
NEXT
REGULAR MONTHLY MEETINGS
Monday October 2 - Boston, Seattle;
Tuesday, October 3 - Baltimore, Houston, Jacksonville, San Francisco;
Wednesday, October 4 - Charleston, New Orleans, Portland;
Thursday, October 5 - Los Angeles, New York, Norfolk, Tampa;
Friday, October 6 - Honolulu.
--------FINISHED WITH ENGINES---------
