Financial trends remain favorable for AMO and AMO Pension Plan
The defined benefit AMO Pension Plan remains "positive," despite the persistent economic uncertainty resulting from the COVID-19 pandemic.
The Plan's return on investment was up 2.2 percent as of June 16, AMO Plans Finance Director John Macuski reported. "The financial markets are up close to three percent across the board," Macuski said. "We will see if we can come back to the highs we set the previous week."
This favorable trend held steady despite "the huge drop in the financial markets" on June 11, when the Dow Jones Industrial Average plunged more than 1800 points, Macuski said. The AMO Pension Plan had by then recovered all of its investment losses suffered during the unprecedented collapse of the financial markets upon the outbreak and persistent consequences of COVID-19 in the first quarter of 2020.
The financial news was equally encouraging for American Maritime Officers. Our union closed out May 2020 with an operating budget surplus in excess of $350,000, according to AMO Controller Thom Heaton. The accumulated 2020 operating budget surplus was $900,000 as of mid-June.
Heaton said AMO's financial standing in mid-June was "slightly better than it was at the beginning of this year," even with the spreading economic fallout from the coronavirus pandemic.
As President of AMO, and as Chairman of the joint union-employer AMO Pension Plan Board of Trustees, I assure the seagoing AMO membership and all AMO families that we remain guarded, alert to the possibility of the additional layup of vessels because of weak demand for their cargoes or services.
Seven Great Lakes vessels remain idle due to slack steel and automotive industry demand for the raw materials AMO hauls in bulk on the lakes. As we all know, vessels inactive even temporarily mean lost jobs for AMO and proportionately fewer employer contributions to AMO Plans, and we will apply responsible measures to address any difficulties that may arise.
Meanwhile, I thank the deep-sea, Great Lakes and inland waters AMO members who pay dues on time and maintain good standing. This practice compliments administrative cost containment policies targeting waste, extravagance and redundancy and allows AMO to claim six consecutive years with no dues increase while applying the lowest dues rates among the three officers' unions.
Paul Doell
June 17, 2020