Benefits: Another Reply to Jack Mulcahy

Richard T. Mead
24 June 2000

Brother Mulcahy,

I hate to break this to you after all the work you did but you’re missing the point. The fact is the old SPD language did not say anything about lifetime benefits. The old language read:

Most pensioners retired under the ILWU-PMA Pension Plan and the ILWU-PMA Watchmen Pension Plan have Welfare Plan eligibility for their lifetime as pensioners.

The new language (circa 1993) reads:

It is expected that eligibility will continue until the Pensioner loses eligibility as explained on page 17.

[from page 17] LOSS OF ELIGIBILITY: Welfare Plan eligibility ends upon death or any of the following events; ceases to be a Pensioner; failure to maintain enrollment in Medicare Part B when required.

The “LOSS OF ELIGIBILITY” language appears in both SPD’s. Ask yourself what’s the difference between “eligibility for their lifetime” and “eligibility ends upon death”? So you see the changes that were made in 1993 were pretty insignificant. Nobody is claiming PMA had the right to unilaterally change the language. But changing it back will not accomplish very much. It won’t add one dime of coverage nor will it extend anyone’s current benefits one second longer. If the earlier SPD had stated “lifetime benefits” as you and others are claiming then we’d have a case.

The other overwhelming hole in your argument is the fact that in every contract negotiation since the 1960’s maintenance of benefits was put on the table. It’s always been first and foremost and presented as a strike issue and never has the employer tried to mess with it but that doesn’t lessen the fact that it has had to be renewed with each contract.

The last thing is the joint letter signed by McWilliams and Miniace. At the time the rumor was going around that pensioners benefits had been given away. There were elderly retirees and thier families who’s very survival depended on thier medical coverage being told they no longer had benefits. So many calls came into the International that something had to be done. The letter reads:

To: ILWU Longshore, Clerks, Walking Boss/ Foremen and Watchmen Locals

From: ILWU-PMA Trustees

RE: Welfare Plan Eligibility and Benefits for Pensioners and Survivors

Union and Employer Trustees of the Welfare Plans have joined together to explain some important facts about Welfare Plan eligibility and benefits for pensioners and survivors.

Facts

a. . There has been no change or takeaway of retirees or survivor Welfare Plan benefits.

b. . The recently ratified Pacific Coast Longshore and Clerk’s collective bargaining agreement provides, for the life of the contract, maintenance of benefits for retirees and survivors as well as for active employees.

c. . Welfare Plan benefits for retirees and survivors have not been reduced or taken away by the Trustees or in the collective bargaining process for decades, since the inception of the Plans.

d. . Unlike pension benefits, which are prefunded, vested and guaranteed under federal laws, Welfare Plan benefits are and always have been provided on a pay-as-you-go basis subject to ILWU-PMA collective bargaining.

e. . It has been and continues to be the intention of the Trustees to provide Welfare Plan benefits for the lifetimes of the participants and beneficiaries, subject to ILWU-PMA collective bargaining.

f. . Statements in the Pension Plan summary plan description booklet regarding lifetime Welfare Plan eligibility were removed to avoid misleading people into believing that Welfare Plan benefits are guaranteed in the same way the Pension Plan benefits are guaranteed.

g. . Summary plan description booklets describe the benefit plans in brief. The information in the booklets is subject to and does not modify the provisions of the Plan Agreements and the collective bargaining agreements.

h. . There has been no change or takeaway of the retiree or survivor Welfare Plan benefits. Rumors to the contrary are false.

Brian McWilliams, President, ILWU
Joseph Miniace, President, PMA

Nowhere in this letter does it say that lifetime language doesn’t belong in the SPD. As is obvious from it’s content the purpose of the letter was to end the rumors and reassure our pensioners.

Brother Richard T. Mead