AMO and AMO Pension Plan continue to defy COVID-19 economic trend

The defined benefit AMO Pension Plan and American Maritime Officers continue to defy the increasingly grim economic trend triggered early this year by the COVID-19 crisis.

The AMO Pension Plan today was up 6.5 percent, having recovered its early coronavirus consequential losses two months ago. The AMO Pension Plan has remained on the positive side of the ledger since then.

As chairman of the joint union-employer AMO Pension Plan Board of Trustees, I am pleased to report that the Plan remains in the 2006 Pension Protection Act's "green zone" at a funded status of 85 percent. I am grateful for the encouraging work AMO Plans administrative and financial personnel, legal counsel, investment managers, certified public accountants and actuaries do each day to sustain the Plan's sound status in this difficult time.

On the union side of South Federal Highway in Dania Beach, the most recent complete figures show American Maritime Officers standing strong in June, the result of combined responsible asset management and steadily increasing on-time membership dues and initiation fee receipts.

While June 2020 operating expenses were higher than projected, revenue was higher than projected as well. Much of the higher expense was related to repairs and remediation following a fire in a construction space at AMO headquarters on June 5.

June 2020 closed with an AMO operating budget surplus exceeding $200,000, bringing the cumulative 2020 operating budget surplus to $1.1 million midway through the year.

AMO will continue to monitor and address economic conditions and current and potential difficulties - including increased withdrawal of Great Lakes vessels from service because of weak industrial demand for iron ore, coal and stone. Inactive vessels threaten AMO jobs, AMO dues and initiation fee revenue and employer contributions to the AMO membership benefit funds administered by AMO Plans.

AMO Controller Thom Heaton noted that the dedicated support staff at AMO headquarters had contributed much to sustained economic security and service to deep-sea, Great Lakes and inland waters AMO members and their families.

AMO is in "a solid but guarded financial position" during an unprecedented and unpredictable nationwide emergency, Heaton said.

"Much of that is due in part to the continued efforts of the employees of AMO," Heaton added. "The employees have adapted to the extreme situations presented in 2020 and kept the continuity of AMO functions for our membership. AMO employees worked from home, optimized electronic resources, re-thought how we support our members and adapted to every challenge 2020 has presented."

The economic status of the AMO Pension Plan and the continued financial strength of American Maritime Officers defied the current catastrophic trend as reported by the U.S. Department of Labor on July 30.

According to DOL, the U.S. economy declined by 32.9 percent between April 2020 and June 2020 - the worst retraction on record.

Paul Doell
AMO President
July 30, 2020