Posted:
June 17, 2010
40% & 100% Contribution Rate Charts Now Titled Schedule 1 & Schedule 2
* Charts are available online
The Pension Plan trustees have changed the titles of the Defined Contribution Plan schedules and removed the actuarial divisor line to ease the confusion expressed by many AMO officers in trying to calculate the percentage to be used in calculating their benefit under the plan. The schedules have not changed, only the titles.
On Jan. 1, 2011, American Maritime Officers members will begin receiving contributions into individual defined contribution retirement accounts. The contributions for each individual will be based upon current benefit base wages plus vacation, and will be calculated for each individual using age plus years of service as follows:
During the time the AMO Defined Benefit Pension Plan is being restored to a level of full funding, AMO members can determine the percentage of their individual benefit base wages plus vacation that will be contributed to their defined contribution retirement account using the table SCHEDULE 1. Note: the contribution value is based on individual benefit base wages plus vacation, but no money will be withheld from wages or vacation.
After the AMO Defined Benefit Pension Plan has reached full funding, contributions by the AMO contracted employers will cease to the Defined Benefit Plan and will instead be made to the Defined Contribution Plan, bringing the plan up to the full funding level under SCHEDULE 2. At that time, AMO members can determine the percentage of their individual base wages plus vacation that will be contributed to their defined contribution retirement account using the table SCHEDULE 2. Note: the contribution value is based on individual benefit base wages plus vacation, but no money will be withheld from wages or vacation.
The trustees of the AMO Pension Plan will provide annual reports to participants advising them of the progress in restoring the AMO Defined Benefit Pension Plan to full funding (full funding is currently projected at 7+ years). Once the Defined Benefit Pension Plan is fully funded, participants will have the option of rolling the value of their defined benefit pension* into their individual defined contribution retirement account (*NOTE: the value of their defined benefit pension as of Dec. 31, 2009, when the plan was frozen). At that time, eligible participants will also have the option of taking a monthly pension from the Defined Benefit Pension Plan based on the value of their pension as of Dec. 31, 2009, when the plan was frozen.
The Board of Trustees of the AMO Pension Plan, under the revised rehabilitation plan, has also maintained the option of subsidized early retirement for eligible participants, also known as the "20-and-out option." This and other aspects of the amended rehabilitation plan have been covered in detail in mailings to plan participants, as well as in articles in American Maritime Officer and on AMO Currents.
AMO members with any questions should contact the AMO Pension Plan at (800) 348-6515 ext. 14, or by .
AMO Defined Contribution Plan
40% & 100% Contribution Rate Charts Now Titled Schedule 1 & Schedule 2
* Charts are available online
The Pension Plan trustees have changed the titles of the Defined Contribution Plan schedules and removed the actuarial divisor line to ease the confusion expressed by many AMO officers in trying to calculate the percentage to be used in calculating their benefit under the plan. The schedules have not changed, only the titles.
On Jan. 1, 2011, American Maritime Officers members will begin receiving contributions into individual defined contribution retirement accounts. The contributions for each individual will be based upon current benefit base wages plus vacation, and will be calculated for each individual using age plus years of service as follows:
- AMO contracted service
- SIU contracted service if immediately prior to AMO service
- Past service will not be eligible for total years
- Each year of service on an ongoing basis and each year of age increase the percentage
- Determined at the beginning of the year
- No partial years
- 100 days covered employment equals one year
During the time the AMO Defined Benefit Pension Plan is being restored to a level of full funding, AMO members can determine the percentage of their individual benefit base wages plus vacation that will be contributed to their defined contribution retirement account using the table SCHEDULE 1. Note: the contribution value is based on individual benefit base wages plus vacation, but no money will be withheld from wages or vacation.
After the AMO Defined Benefit Pension Plan has reached full funding, contributions by the AMO contracted employers will cease to the Defined Benefit Plan and will instead be made to the Defined Contribution Plan, bringing the plan up to the full funding level under SCHEDULE 2. At that time, AMO members can determine the percentage of their individual base wages plus vacation that will be contributed to their defined contribution retirement account using the table SCHEDULE 2. Note: the contribution value is based on individual benefit base wages plus vacation, but no money will be withheld from wages or vacation.
The trustees of the AMO Pension Plan will provide annual reports to participants advising them of the progress in restoring the AMO Defined Benefit Pension Plan to full funding (full funding is currently projected at 7+ years). Once the Defined Benefit Pension Plan is fully funded, participants will have the option of rolling the value of their defined benefit pension* into their individual defined contribution retirement account (*NOTE: the value of their defined benefit pension as of Dec. 31, 2009, when the plan was frozen). At that time, eligible participants will also have the option of taking a monthly pension from the Defined Benefit Pension Plan based on the value of their pension as of Dec. 31, 2009, when the plan was frozen.
The Board of Trustees of the AMO Pension Plan, under the revised rehabilitation plan, has also maintained the option of subsidized early retirement for eligible participants, also known as the "20-and-out option." This and other aspects of the amended rehabilitation plan have been covered in detail in mailings to plan participants, as well as in articles in American Maritime Officer and on AMO Currents.
AMO members with any questions should contact the AMO Pension Plan at (800) 348-6515 ext. 14, or by .