Union remains strong financially through four-month COVID-19 pandemic; AMO Pension Plan regains all losses arising from related economic crisis
American Maritime Officers emerged from the first four months of the COVID-19 economic crisis with an accumulated year-to-date operating budget surplus well in excess of $500,000, according to the most recent complete analysis of the union's financial state on June 2.
Meanwhile, the defined benefit AMO Pension Plan had by June 2 regained all of its investment market losses attributable to the economic consequences of the national health emergency, including unprecedented market turmoil and staggering, record-breaking losses through the first quarter of 2020.
"We are now in a positive position," AMO Plans Director of Finance John Macuski said of the AMO Pension Plan. "A long way from the lows in March."
The AMO Pension Plan remains in the federal Pension Protection Act's "green zone" with a funded status of about 85 percent, and the 10-percent January 1, 2020 increase in monthly benefits calculated for active AMO members who were vested in the Plan as of December 2009 remains in place.
On the union side, AMO Controller Thom Heaton said the operating budget surplus in April 2020 was a modest $28,000.
Heaton attributed AMO's sustained security during the crisis to increased timely dues payments by AMO members and greater dues and initiation fee receipts from applicants for AMO membership. The union gained as well as a non-profit organization during this period from payroll tax credits AMO qualified for under COVID-19 economic relief legislation.
Heaton said there was no need to draw from AMO investment accounts to cover payroll or anticipated operating expenses. These accounts had by mid-May recovered significantly from the losses incurred during the first quarter of 2020.
While the reports on the AMO treasury and the AMO Pension Plan are encouraging, we may not yet have experienced the pandemic-related economic crisis at its worst.
By June 1, seven Great Lakes vessels staffed by AMO engineers, mates and stewards had been forced into indefinite layup because of declining demand for iron ore from Midwest steel mills that have reduced output or have closed.
In time, slack cargo demand could force deep-sea and inland vessels out of service in several sectors and, as we know, idle vessels in any market mean lost jobs for AMO members and proportionately reduced employer contributions to AMO Plans.
This administration is monitoring industry developments across the board. We as a union have to remain cautious, vigilant and responsible to limit both the risk of coronavirus contagion within our membership ranks and the potentially wider loss of AMO jobs in international and domestic trades.
I welcome the comments, questions, suggestions and personal perspectives of all AMO members during an unprecedented crisis that cannot be addressed in conventional or traditional ways.
Thank you for listening.
Paul Doell
June 3, 2020