made 18 trips - American Maritime Officers

Transcription

Volume 40, Number 2
February 2010
New jobs for AMO as ARC brings New AMO
M/V Endurance into U.S.-flag fleet jobs aboard
Commercial car carrier among largest, most militarily useful
American Roll-On/Roll-Off Carrier will proceed with plans
announced last year to purchase and re-flag a ninth car carrier into
U.S. registry. The ship is scheduled to enter service in New York
on Feb. 15 and will be named the M/V Endurance.
Members of American Maritime Officers joined the
ship (former M/V Taronga) in January in California. The
Endurance will be operated by Crowley Liner Services for
American Roll-On/Roll-Off Carrier and manned in all
licensed positions by AMO.
“AMO is proud to be part of ARC’s plans to bring one of
the largest and most versatile commercial RO/ROs into the U.S.
fleet,” said AMO National President Tom Bethel. “We welcome
the new jobs and the opportunity to set another benchmark in
U.S.-flag shipping.”
The Endurance will replace the ARC car carrier Liberty in
the Maritime Security Program. The Liberty will remain under
U.S.-flag and is currently operating under a Military Sealift
Command charter.
The M/V Endurance was delivered by Mitsubishi Heavy
Industries in December 1996. The ship is a unique RO/RO and is
among the largest such vessels in the world at 860 feet in length.
The Endurance has nine decks that can be configured to carry
over 260,000 square feet of high and heavy cargo – such as CH-
47s, MRAPs, MATVs, tracked vehicles, construction equipment
and generators – 130,000 square feet of additional high-side vehicle (SUV) space, and approximately 200 containers. The ship’s
quarter ramp weight capacity of 320 tons exceeds that of any vessel in the U.S.-flag commercial fleet.
American Roll-On/Roll-Off Carrier is proceeding with
plans to purchase a ninth car carrier (former M/V Taronga)
and re-flag it into U.S. registry. AMO will man the M/V
Endurance in all licensed positions.
AMO jobs secure as Crowley
Liner Services assumes
management of nine ships
Ocean Atlas
delivers for
New York City
subway project
Page 12: The M/V Ocean Atlas in
January completed the U.S.-flag
delivery of subway car bodies for the
New York City Transit Authority. The
ship is manned in all licensed positions by AMO in the Maritime
Security Program fleet
Great Lakes News
Page 10: The AMO Great Lakes
area informational meetings will
be held this month.
American
Roll-On/Roll-Off
Carrier (ARC) is terminating its vessel
management agreement with Interocean
American Shipping Corp.
Crowley Liner Services was to
have assumed management of nine
U.S.-flagged ARC car carriers, including the soon-to-be re-flagged M/V
Endurance, beginning Jan. 25 and continuing through March of this year.
American Maritime Officers
manned all U.S.-flagged ARC car carriers while they were under the management of IAS. AMO will continue to man
these car carriers in all licensed posi-
tions under the management of Crowley
Liner Services.
Eight of the ARC car carriers operate in the 60-ship Maritime Security
Program fleet. They are the Freedom,
Integrity,
Honor,
Courage,
Independence II, Liberty, Patriot and
Resolve. ARC is proceeding with plans
to purchase and re-flag a ninth car carrier into U.S. registry this month. Crowley
Liner Services will operate the M/V
Endurance for ARC and the ship will
replace the Liberty in the MSP fleet. The
Liberty will continue to operate under
AMO contract in the U.S.-flag fleet.
AMO secures new
contracts with
significant gains
Leadership at sea:
AMO officers
deter pirate attack
Page 11: AMO has secured
new three-year agreements covering two Maersk Line Limited
tankers and six Seabulk
tankers. Both agreements
include significant increases for
the AMO officers working
aboard the ships.
Page 3: The report of Capt.
Michael Tolley, master of the
M/V Harriette, illustrates the
professionalism and heroism of
the officers and crew in deterring a recent assault on the ship
by armed pirates off the coast
of Kenya.
Mohegan
under MSC
charter
The containership M/V Mohegan
has commenced a resupply service to
Diego Garcia this month after being reflagged into U.S. registry and delivered to
Military Sealift Command Wednesday,
Jan. 6, in Singapore.
Sealift Inc. is operating the Mohegan
under MSC charter and the ship is manned
in all licensed positions by American
Maritime Officers.
“AMO welcomes these new jobs
with Sealift and we look forward working
with them in this important mission supplying the fleet in Diego Garcia,” said
AMO National President Tom Bethel.
Sealift LLC purchased the 703-TEU
Rio Bogota from Danish owners last year.
The ship, built in 1994, was re-flagged and
renamed for service under the MSC charter.
Sealift Inc. is pleased to have been
awarded the charter for the resupply mission to Diego Garcia and is proud to be
part of Military Sealift Command’s mission in this important area of the world, the
company stated.
The charter under which the
Mohegan is operating can extend up to five
years if all options are exercised, with a
firm one-year period, three one-year
options and one 11-month option.
Including the Mohegan, Sealift manages 12 ships manned in all licensed positions by American Maritime Officers.
AMO Essentials
AMO Pension Plan updates:
◆ Pages 6, 7, 12
STAR Center course
◆ schedule: Pages 8-9
◆ AMO directory: Page 10
AMO membership meeting
◆ schedule: Page 10
Copyright © 2010 American Maritime Officers ■ 2 West Dixie Highway ■ Dania Beach, FL 33004 ■ (800) 362-0513 ■ [email protected]
2 • American Maritime Officer
February 2010
Relief for Haiti: AMO and the U.S. merchant marine
By Tom Bethel
National President
The
call
went out, and — as
always — the men
and women of the
American
merchant
marine
responded.
The
mission this time
was humanitarian
— relief services in
Haiti, where a massive earthquake
January 12 and a
powerful aftershock caused untold destruction and despair.
The U.S. government’s immediate and
comprehensive response to this tragedy
included the dispatch of the privately operated USNS 1st Lieutenant Jack Lummus, USNS
PFC Dewayne T. Williams and USNS Henson
to Haiti by the Navy’s Military Sealift
Command, the deployment of several additional MSC vessels crewed by civil service
mariners, and the activation of three Ready
Reserve Force Ships by the Maritime
Administration in the Department of
Transportation.
As part of the fleet mobilization, two
government-owned fast ferries were called
upon to assist in an effort hindered by the loss
of Haiti’s major port in the quake and the
logistical complications of getting relief personnel, supplies and equipment through rubble and ruin to where they were needed the
most.
Our union’s response on one level was
to commit to a donation of $25,000 to the
Haitian relief project through the American
Federation of Labor-Congress of Industrial
Organizations Solidarity Center Education
Fund. The money will come not from the
AMO treasury, but from the voluntary AMO
Membership Assistance Program, or MAP.
The MAP fund — established with
Internal Revenue Service approval after
Hurricanes Katrina and Rita devastated New
Orleans and the Gulf Coast — is supported
by individual contributions from AMO officials, representatives and employees and
seagoing AMO members. Employees of
AMO Plans in Dania Beach — many of
whom are of Haitian descent, and many of
whom have family in the Caribbean country
— contribute routinely through authorized
payroll deduction.
AMO’s response on a more visible
level was to man many of the U.S.-flagged
vessels tapped for Haitian relief service.
The National Executive Board of
American Maritime Officers and I are grateful to all of the private sector and government
mariners participating in this widespread
effort to bring help and hope to people who
have known too much heartbreak over too
long a time. These men and women bring
credit to all U.S. citizen seafarers and to the
U.S. maritime industry as a critical diplomatic asset, and they are truly representative of
American character.
But we are especially grateful to —
and proud of — the AMO members involved
to so significant an extent in the operation.
AMO engine and deck officers were
aboard the USNS 1st Lt. Jack Lummus and
USNS PFC Dewayne T. Williams, both of
which serve in Maritime Prepositioning Ship
Squadrons that carry afloat prepositioned
cargo for U.S. military forces. American
Overseas Marine Inc., a General Dynamics
unit referred to commonly as AMSEA, operates the Lummus, Williams and 10 other vessels under MSC charters.
At Blount Island Command in
Jacksonville, the USNS 1st Lt. Jack Lummus
took on cargo from the U.S. Agency for
International Development in the State
Department, the Federal Emergency
Management Agency in the Department of
Homeland Security and other federal agencies, as well as equipment and supplies for the
U.S. Marine Corps. The shipment included
relief supplies, gear for the U.S. Marine
Corps’ 22nd Marine Expeditionary Unit —
dump trucks, bulldozers and other heavy
equipment — and barges for cargo lightering
off the Haitian coast.
“The 637-foot Lummus, with 165,000
square feet of cargo carrying capacity, was
ideal for the no-notice mission,” said MSCMPS project officer Mike Neuhardt in an
MSC press release. “Lummus was already in
port at Blount Island, offloading its cargo for
scheduled maintenance.”
Like all AMO members, the officers
aboard the USNS 1st Lt. Jack Lummus are
accustomed to emergency conditions and
“no-notice” assignments, and they handled
them in this case with the professionalism,
skill, dedication and urgency they are known
for everywhere.
AMO engine and deck officers are also
aboard the USNS Henson, an oceanographic
survey vessel tracking the earthquake’s damage to shipping channels in Haiti. The Navy
techs and support personnel aboard the USNS
Henson are doing their important work confidently, knowing that the vessel itself is in the
world’s most capable and trusted hands.
Members of American Maritime
Officers are aboard the RRF ships called up
for Haitian relief service — the auxiliary
crane ships Gopher State and Cornhusker
State (both operated for MARAD by
Interocean American Shipping) and the barge
carrier Cape May (operated for MARAD by
Ocean Duchess).
“Sending these ships will help those
on the front line of this effort to save as many
lives in Haiti as possible,” Transportation
Secretary Ray LaHood said of the Ready
Reserve Force break-out. “These ships will
add crucial capabilities by supporting operations to move large volumes of people and
cargo.”
“These ships and skilled crews are ideally suited to assist in Haiti by providing
unique capabilities,” Acting Maritime
Administrator David Matsuda added.
I’ll second these comments — gladly.
When the Haitian relief operation is
over, the AMO members on the scene will
return home with compelling, often grim but
humbling personal stories to tell. But the
story we will all tell together in American
Maritime Officers is a familiar one, told by
generations since the American Revolution.
Its theme is unchanging— the everlasting
need for a strong and diverse U.S.-flagged
and manned merchant fleet that can serve
U.S. economic, military and humanitarian
interests worldwide.
American Maritime Officer (USPS 316-920)
Official Publication of American Maritime Officers
2 West Dixie Highway
Dania Beach, FL 33004
(954) 921-2221
Periodical Postage Paid at
Dania Beach, FL, and Additional Mailing Offices
Published Monthly
American Maritime Officers National Executive Board
Thomas Bethel, National President
José Leonard, National Secretary-Treasurer
Robert Kiefer, National Executive Vice President
Joseph Gremelsbacker, National Vice President, Deep Sea
Donald Cree, National Vice President, Great Lakes
Brian Krus, National Assistant Vice President, Great Lakes
Michael Murphy, National Vice President At Large
Daniel Shea, National Executive Board Member At Large
David Weathers, National Executive Board Member At Large
John Hafner, National Executive Board Member At Large
Donald Nilsson, National Executive Board Member, Deep Sea
Charles Murdock, National Executive Board Member, Inland Waters
Representative: Stan Barnes
Editor: Matt Burke
Assistant Editor: Amber Lupin
Contributing Editor: Paul Doell
Photo: Military Sealift Command
A floating causeway delivers relief aid from the Military Sealift Command maritime
prepositioning ship USNS 1st Lt. Jack Lummus while local Haitians prepare the
dock for landing in Port-au-Prince. The Lummus is operated for MSC by AMSEA
and manned in all licensed positions by AMO.
POSTMASTER—Send Address Changes To:
American Maritime Officers
ATTN: Member Services
P.O. Box 66
February 2010
American Maritime Officer • 3
Membership Report from Washington, D.C.
To the editor:
Please publish this
on AMO Currents
or in the AMO
newspaper. Thank
you.
I participated
in
the
AMO–Maersk
Line LTD tanker
contract negotiations at the AMO
headquarters
in
Washington DC, 05-08 Jan., and I wanted to
let everyone know about the experience.
I wish to thank National President Tom
Bethel, National Executive Vice President
Robert Kiefer, National Vice President at
Large Mike Murphy and Legislative Director
Paul Doell for their time, knowledge sharing
and hospitality. I had an opportunity to speak
with each of them on varying subjects with
regard to the current issues facing our union.
I walked away feeling educated and pleased
with the direction our current union leadership is undertaking for the membership.
Bob Kiefer was instrumental in attaining a fair and balanced contract for the MLL
tanker officers, a contract that provides parity
with other AMO tanker contracts over the
next three years. Bob was persistent and
knowledgeable on all the pertinent negotiable
points, which resulted in a considerable
increase in our pay and benefit contribution
package. It is being well received by the officers within the MLL tanker fleet.
Mike Murphy made himself available
to me despite his busy schedule. Not only is
Mike involved with issues inside the DC beltway for our membership, but he is also
Chairman of the Maritime Safety Committee
of the International Transport Workers’
Federation (MSC/ITF), which works closely
with IMO. At the time of my visit, Mike was
preparing for an IMO meeting in London to
be held on 11-15 Jan to discuss global STCW
standards. I have always been impressed with
Mike’s integrity, congeniality and graciousness as a person but I am struck by his keen
ability to make detailed and convoluted issues
clear and understandable. We are fortunate to
have Mike Murphy as National Vice
President at Large working for our causes.
The national and international initiatives the AMO union is currently facing are
somewhat daunting, certainly unprecedented
but at the same time exciting. There is a sea
change of events taking place at a very high
level that will affect each of us as mariners in
the near future. Considering the
IMO/ITF/MSC docket, MSP funding, Title
XI Loan Guarantees, Jones Act legislation,
Cargo Preference Laws, EPA changes and
PL-480 cargoes to name a few. That said, I
have a deeper appreciation for the value of the
Voluntary Political Action Fund after discussing first hand the complicated issues confronting our union that have far reaching consequences for the entire membership.
I appreciate the opportunity to represent the MLL tanker officers in the negotiations, and I appreciate the hard work, service
and dedication of the administration to our
union during this time of change. Making the
difficult, sometimes unpopular but necessary
decisions to keep our union moving forward,
solvent and competitive on a global level is
what defines leadership.
—Captain Michael Ross
M/V Harriette: deterring an attack by armed pirates
Remarkable response of officers, crew saves ship, ensures safety of all onboard
The M/V Harriette, a U.S.flagged ship operated by Sealift Inc.
and manned in all licensed positions
by American Maritime Officers, evaded an attack by armed pirates about
360 nautical miles from Mombasa,
Kenya, in November. No officers or
crew members on the Harriette were
harmed in the attack.
“We all feel very fortunate to
have prevailed over the pirates in this
attack,” said Capt. Michael Tolley,
master of the Harriette, who recently
described the specific actions that
allowed the ship to evade the pirates.
Around 11 a.m. local time, two
skiffs approached the vessel. Capt.
Tolley ordered successive sharp turns
and hit the first skiff. Undeterred, the
skiff came alongside the vessel and
tried to put a ladder with wide hooks
up on the ship’s rail. Capt. Tolley
turned the vessel into the seas and created a “wedge of water” between the
skiff and the ship.
“They were very vulnerable at
this time,” Capt. Tolley said.
Meanwhile, Chief Mate Stephen
Gavini mustered the crew at piracy
stations and made sure the fire hoses
were charged. Second Mate John
Norton was on the phone with the
International Maritime Bureau and
sent a distress message.
In the engine room, Chief
Engineer John Dunn increased the
main engine to max revolutions – “the
most we have ever seen!” Capt. Tolley
said.
Looking down into the first skiff,
Capt. Tolley could see several containers
of fuel, along with the heavy weaponry the
pirates carried – Kalashnikovs and rocketpropelled grenade launchers. The pirates
did not use the grenade launchers, but
fired a total of 30 to 40 rounds from an
AK-47, damaging the port lifeboat and
“some of the ship’s structure.” Most of
the shots sailed over the vessel.
With increased speed, the skiffs
were caught up in the Harriette’s wake
and fell back. The total attack lasted less
M/V Harriette
Second Mate
John Norton,
Chief Engineer
John Dunn and
Capt. Michael
Tolley, master of
the Harriette, (left
to right) were
onboard during
the attack by
pirates in
November off the
coast of
Mombasa, Kenya,
and acted to deter
the pirates, save
the ship and
ensure the safety
of all onboard.
The Harriette is
operated by
Sealift Inc. and
manned in all
licensed positions
by American
Maritime Officers.
Legislation would provide big boost
to U.S. shipbuilding, Title XI program
The House of Representatives has
passed an amendment to appropriations legislation that would provide, among other
actions aimed at simulating the economy,
$100 million in funding for new Title XI
guarantees of commercial shipbuilding
loans. The Senate has yet to vote on the
amendment.
“The transportation and infrastructure
investments of the [American Recovery and
Reinvestment Act of 2009] have already
played a key role in putting Americans back
to work,” said Rep. James Oberstar (D-MN),
chairman of the Transportation and
than half an hour.
“We at Sealift are extremely
proud of Captain Mike Tolley and the
crew of the Harriette,” said John
Belle, company security officer for
Sealift Inc. “Their efforts saved the
ship and protected the safety of the
crew.”
Infrastructure Committee, speaking before
the House. The proposed legislation “will
create and sustain more than one million
good, family-wage jobs,” he said.
Approved by the House on Dec. 16,
2009, as an amendment to appropriations
legislation for the Commerce, Justice,
Science and related agencies, the Jobs for
Main Street Act of 2010 would provide $75
billion in new stimulus funding. The amendment allocates $100 million for new Title XI
loan guarantees. If signed into law, this legislation would represent one of the largest
federal investments in the Title XI program
since its inception. According to Rep.
Oberstar, $100 million in loan guarantees
would help secure up to $2 billion in commercial loans.
In January, Congressman Glenn Nye
sent a letter, co-signed by Congressmen Rob
Wittman (R-VA), Bobby Scott (D-VA) and
Randy Forbes (R-VA), to House leaders, asking them to include shipbuilding jobs in jobcreation legislation expected to come before
the House in early 2010.
“Investing in shipbuilding is a winwin. It creates good-paying jobs to grow our
economy, and it helps us meet the national
security needs of the Navy and Coast
Guard,” said Rep. Nye, who serves on the
Seapower Subcommittee of the House
Armed Services Committee.
The Title XI loan guarantee program
does not provide subsidies. Instead, the federal government backs loans needed to build
vessels in U.S. shipyards, easing access to
commercial credit at lower interest rates
from private financial institutions. The Title
XI program significantly bolsters the construction of Jones Act ships.
“The Maritime Administration currently has more than $2.5 billion in pending
loan guarantee applications to build vessels
worth more than $2.9 billion in U.S. shipyards,” Rep. Oberstar noted.
The legislation also provides $715
million for the Army Corps of Engineers for
“environmental restoration, flood protection,
hydropower and navigation infrastructure.”
February 2010
MSC awards
charter for
seven Bob
Hope Class
LMSRs to
AMSEA
Military Sealift Command has awarded the operating contract for the seven Bob Hope Class large medium-speed rollon/roll-off ships to American Overseas Marine Corporation, the
current operator of the LMSRs. American Maritime Officers will
continue to man the Bob Hope Class LMSRs in all licensed positions.
The seven ships covered by this, the first lot in the request
for proposals (RFP), are the USNS Benavidez, USNS Brittin,
USNS Bob Hope, USNS Fisher, USNS Mendonca, USNS Pililaau
and USNS Seay. According to the award announcement, six of the
seven LMSRs will be maintained in reduced operating status.
When needed, these six ships may be activated and fully crewed
to transport Department of Defense equipment in support of
deployed U.S. military forces worldwide. The seventh LMSR will
sail in support of the afloat prepositioning mission of the U.S.
Marine Corps. The contract includes four one-year option periods
and five six-month award-term periods. If all optional periods are
exercised, the contract would extend to September 2017.
MSC has assigned the operating contract for lots two and
three of the RFP – covering the USNS Gordon, USNS Gilliland,
USNS Shughart and USNS Yano – to American Ship Management
(Patriot Contract Services), a non-AMO company. The USNS
Shughart and USNS Yano have been operated by AMSEA, and the
USNS Gordon and USNS Gilliland have been operated by 3PSC
LLC. These two lots were designated as small business set-asides
in the RFP.
“Each of these government RFPs is extremely competitive
and the outcome of each is unpredictable,” said AMO National
President Tom Bethel. “The officers working aboard all of the ships
in the LMSR program have demonstrated the expertise, excellence
and professionalism typical of AMO members and required to make
the missions in which these ships serve successful.”
AMO-contracted Military Sealift Command, Ready
Reserve Force ships mobilized for Haiti relief effort
In the aftermath of a 7.0-magnitude
earthquake centered near Port-au-Prince,
Haiti on Jan. 12, three Ready Reserve
Force vessels have been activated for the
relief effort, including the AMO-contracted S/S Gopher State, S/S Cornhusker State
and S/S Cape May. The Military Sealift
Command ships USNS Henson, USNS 1st
Lt. Jack Lummus and USNS PFC
Dewayne T. Williams, manned in all
licensed positions by American Maritime
Officers, have been mobilized to aid in
humanitarian relief.
These ships are among several controlled by Military Sealift Command and
three ships from the Maritime
Administration’s Ready Reserve Force
mobilized at press time in support of
humanitarian relief efforts in Haiti. The
Ready Reserve Force ships come under
the operational control of MSC when activated.
“Sending these ships will help those
on the front line of this effort save as many
lives in Haiti as possible,” said Secretary
of Transportation Ray LaHood. “These
ships will add crucial capabilities by supporting operations to move large volumes
of people and cargo.”
The earthquake destroyed local port
facilities in Haiti, including the container
crane and two smaller cranes. The
oceanographic research ship USNS
USNS Williams
demonstrates
ship-to-shore
capabilities in
MSC exercise
Military
Sealift
Command
Prepositioning Ship USNS PFC Dewayne T.
Williams recently participated in an exercise
demonstrating ship-to-shore capabilities in
the absence of a port.
The exercise, called Pacific Horizon
2010, was held primarily off the coast of
Camp Pendleton, Calif., reported Laura Seal
of MSC Public Affairs in the December edition of Sealift. The Williams, operated by
American Overseas Marine Corp. and
manned in all licensed positions by
American Maritime Officers, dropped
anchor three miles off the coast. From this
position, 41 military vehicles were offloaded
to shore and then reloaded onto the vessel, all
without the use of port facilities.
“This exercise was a great chance for
us to practice what we get paid to do,”
AMO members recently working aboard the Cornhusker State (left) and Gopher
State (right), here in Newport News, Va., included: (Gopher State, no particular
order) First A.E. Jon Sprague, Third A.E. Anthony Neathery, Chief Engineer Tim
Stagg, Capt. Joe Gargiulo and Second A.E. Matt Campbell; (Cornhusker State, no
particular order) Chief Engineer Michael McDermott, Third A.E. Warren Carroll,
Second A.E. Chris Gilman, First A.E. Mark Harvey and Capt. Todd Cooper.
Additional AMO members aboard the ships as they mobilized for Haiti (not in the
picture) included: (Gopher State) Chief Mate Thomas Litowinsky, Second Mate
Jeffrey Perlstein, Third Mate Terrance Franklin, Third Mate Lucas Balchunas, REO
Shahnda Caviness, Third A.E. Colin McDonnell and Third A.E. Frederick Reyes;
(Cornhusker State) Chief Mate Jan Genemans, Second Mate Mark Holman, Third
Mate John Baucom, Third Mate Erik Bekkelund, REO Ashley Vail, Third A.E.
Adamo Ferriero and Third A.E. Scott Williams.
Henson, operated by 3PSC LLC for MSC,
will examine the ocean floor and check
the disruption of channels, Navy Times
reported.
Until the port facilities can be
restored, the bulk of relief materials will
need to be shipped by air or be delivered
on vessels capable of offloading without a
port. The crane ships Gopher State and
Cornhusker State are capable of assisting
in this capacity. The ships are both
equipped with three independent twinboom
pedestal-mounted
rotating
hydraulic deck cranes. These cranes allow
containers and other cargo to be unloaded
in ports with damaged facilities. Both vessels are operated by Interocean American
Shipping Corp.
The Cape May, operated by Ocean
Duchess Inc., features a unique submersible cargo elevator capable of lifting
entire floating causeway sections.
The Cape May recently participated
in the Joint Logistics Over the Shore
(JLOTS) exercise, which tested the ship’s
ability to help deliver cargo to a destination with a damaged, destroyed or nonexistent port.
“Once again the U.S. merchant
marine is answering the call for assistance, as it has done since our nation
began,”
said
Acting
Maritime
Administrator David Matsuda. “These
ships and skilled crews are ideally suited
to assist in Haiti by providing unique
capabilities. One cargo ship can carry as
much as 400 fully loaded cargo planes.”
USNS Henson locates aircraft wreckage
The USNS Henson late last year
located the sunken wreckage of an aircraft missing since late October 2009
in the waters off the Netherlands
Antilles in the southern Caribbean,
Military Sealift Command reported.
The Military Sealift Command
oceanographic survey ship was
deployed to the region for the U.S.
Navy
engagement
program
Oceanographic Southern Partnership
Station. The USNS Henson (T-AGS
63) is one of seven oceanographic survey ships operated under a new contract by 3PSC LLC, which took over
management of the ship Nov. 23, 2009.
All seven ships are manned in all licensed
positions by American Maritime Officers.
The Britten-Norman Islander passenger airplane crashed into the Caribbean
Sea Oct. 22 near the island of Bonaire.
Although all nine passengers escaped, the
pilot, Robert Mansell, has been classified
as missing after making a controlled crash
landing on the water and seeing to the
safety of the passengers onboard the
plane.
The government of Netherlands
Antilles requested help in locating the aircraft and its pilot. U.S. Naval Forces
Southern Command (SOUTHCOM)
and U.S. 4th Fleet (NAVSO/C4F)
directed the Henson to search for the
aircraft at its last known coordinates.
The Henson Nov. 30 located airplane
wreckage at a depth of about 625 feet
near those coordinates, MSC reported.
The seven oceanographic survey
ships are owned by MSC and operated
for the Naval Meteorology and
Oceanography Command by 3PSC
LLC. These ships operate worldwide,
collecting data that provides much of
the U.S. military’s information on the
ocean environment.
AMO member Capt. John Mulderig, master
of the USNS Williams with more than 24
years of experience with Military
Prepositioning ships, told Seal. “An exercise of this magnitude is more complex than
most people realize, and it’s rare that we get
all of the units together to practice.”
Led by the Marine Corps’ 1st Marine
Expeditionary Force in coordination with
Expeditionary Strike Group Three, Naval
Beach Group One and the crew of the
Williams, the exercise required the at-sea
assembly of three watercraft called causeway ferries. The causeway ferries, each
measuring 240 feet long, can carry up to
seven six-wheeled Medium Tactical Vehicle
Replacements or 14 Humvees. The vehicles were loaded onto the causeway ferries
via the Williams’ cranes, operated by its
crew, and then delivered to shore.
“Our job is to get the ship from point
A to point B. But since we know the ship
and the equipment so well, we are always
on hand facilitating,” said Mulderig.
“The professionalism and seamanship of Williams’ master and chief mate,
and their suggestions about how to best execute the evolution really helped us out,” said
Navy Capt. James O’Connor, commanding
officer of Naval Beach Group One.
February 2010
Great Lakes
David Foster
new chief of
American
Steamship
GATX Corporation announced Jan.
19 that David Foster has been appointed
president of American Steamship Company.
American Maritime Officers represents
licensed officers and stewards in the ASC
fleet, which is the largest U.S.-flag fleet of
fresh-water self-unloading vessels, serving
the steel, energy and construction industries
on the Great Lakes.
“We are very fortunate to have someone of Dave’s caliber and experience join
our industry-leading ASC team,” said
Clifford Porzenheim, chief executive officer of ASC and senior vice president of
GATX. “I am confident Dave’s extensive
experience in the shipping industry, customer focus and management acumen will
help guide ASC in all aspects.”
Foster has worked in the maritime
industry for more than 30 years, most
recently as president of Northern
Transportation Company Ltd., a Canadian
Arctic marine transportation and fuel supply company. He is a registered professional engineer and holds a diploma in naval
architecture, a master’s degree in business
administration and a bachelor’s degree in
engineering from Memorial University of
Newfoundland.
New EPA fuel
regulations
finalized for
large vessels
In December, the Environmental
Protection Agency finalized a rule setting
new stringent engine and fuel standards for
large U.S.-flagged vessels.
These fuel standards are tied to and a
major component of the proposed
Emissions Control Area (ECA), a geographical designation marking strong environmental regulations. In March of this
year,
the
International
Maritime
Organization will vote on the creation of an
ECA. If approved, all vessels operating
within 200 nautical miles from most U.S.
coasts will be required to abide by these
new standards.
The 147-page ruling, among other
items, requires Category 3 vessels, those
with engines with per-cylinder displacement at or above 30 liters per cylinder, to
use fuel containing no more than 1,000
parts per million (ppm) sulfur, effective
when the ECA is created. The EPA has set
an intended fuel sulfur content limit at 15
ppm, which will be phased in by Dec. 1,
2014.
The proposed ECA will include the
Great Lakes. However, steamships operating exclusively on the lakes are exempt
from this ruling, due to their inability to use
the required distillate fuels. Additional lakers powered by Category 3 diesel engines
have been granted temporary relief due to
the extreme economic hardship that would
be imposed if these vessels were required to
AMO aboard as American Republic completes season
AMO members working aboard
the M/V American Republic as it
laid up for the winter in January
in Toledo, Ohio, included Second
Assistant Engineer James Arlt
and Third A.E. Glenn Barlik. With
them here are AMO National
Vice President for the Great
Lakes Don Cree and AMO
National Assistant Vice President
for the Great Lakes Brian Krus.
AMO represents the licensed
officers and stewards working
aboard the American Republic,
which is owned and operated by
American Steamship Company.
A crane removes life rafts from the American Republic
docked at its winter berth in Toledo, Ohio.
AMO member Second Assistant Engineer Sam Grieve
works on the main engine heat exchanger during lay-up
on the American Republic in January.
Lakers saw 34 percent less cargo in 2009
Fleet leaders express cautious optimism about 2010 cargo float
U.S.-flag vessels on the Great
Lakes carried just 66.5 million tons of
dry-bulk cargo in 2009, 34 percent less
than in the previous year, reported the
Lake Carriers’ Association.
Iron ore shipments totaled 24 million net tons, the lowest cargo volume in
decades. Drastically reduced demand
from steel plants in the U.S. and Canada
started to increase late last year but still
have about 30 percent of their capacity
idle, said Glen Nekvasil, LCA vice president of corporate communications.
Coal shipments totaled just 21 million
tons, down 17 percent from 2008. Decreased
exports to Canada, a generally cool summer
and the weak economy contributed to a
slump in coal, the LCA reported.
Limestone shipments were down as
well, due to slowing construction across the
country and lessened demand for fluxstone
from the steel industry, the LCA noted.
U.S.-flagged vessels carried slightly
more salt and grain than in 2008.
Nevertheless, seven of the 55 vessels in
the U.S.-flagged Great Lakes fleet did not
sail in 2009. Several sailed for only short
periods.
Fleet leaders in the region are cautiously optimistic that cargo totals will
improve in 2010, arguing that when the
economy as a whole starts to recover, shipping will follow.
U.S.-Flag Carriage Year-to-Date (December) 2004-2009 (net tons)
Commodity
2004
2005
2006
2007
2008
2009
5-Year Average
Iron Ore
51,201,511
46,572,119
48,972,112
47,206,383
47,223,494
24,031,087
48,235,124
Coal
24,416,349
27,207,350
25,333,113
25,170,629
24,971,623
20,674,888
25,419,813
Limestone
29,861,141
27,935,513
29,489,410
25,966,057
23,623,070
17,067,232
27,376,838
Cement
3,965,401
3,892,822
4,024,703
3,602,488
3,294,071
2,865,323
3,755,897
Salt
1,032,109
1,187,777
1,126,862
1,241,297
1,224,769
1,260,901
1,162,563
Sand
489,355
461,813
429,411
449,474
359,191
262,805
437,849
Grain
367,785
403,055
357,143
404,873
247,597
304,507
356,091
Total
111,333,651
107,660,449
109,732,754
104,041,201
100,952,815
66,466,743
106,744,174
Source: Lake Carriers’ Association
be retrofitted to use the required fuels.
American Maritime Officers was
involved in meetings with legislators and
the EPA to provide flexibility for the Great
Lakes vessels in the new EPA rules, which
recognize shipping as the most efficient and
environmentally friendly form of cargo
transportation in the region.
Also exempted are “public vessels”
with a national security exemption and
engines that will be used only during an
emergency or crisis.
February 2010
AMO defined contribution pension plan at a glance
In January 2011, the American
Maritime Officers defined benefit Pension
Plan will be replaced by a defined contribution plan that will provide all deep-sea,
Great Lakes and inland waters AMO members and applicants for AMO membership
with individual personalized retirement savings accounts funded initially at a 40-percent level at no cost to participants. Once
the defined benefit AMO Pension Plan is
fully funded and able to meet all of its
remaining financial obligations to participants, employer contributions to the new
defined contribution retirement accounts
will rise to the 100-percent level.
The individual accounts established
in January 2011 will be in addition to the
AMO 401(k) Plan and the AMO Pension
Plan Money Purchase Benefit, or MPB, and
they will include individuals who received
in-service lump-sum pension benefit distri-
butions before the AMO Pension Plan was
forced by law to eliminate this popular
option in October 2009.
Below is an outline of how the new
AMO defined contribution retirement savings plan will function. Please see the
schedules on Page 7 for calculating contributions at 40 percent and 100 percent.
This bulletin and the schedules for calculating contributions were published online on
AMO Currents and mailed to the home
address on file for each AMO member and
applicant.
•Contributions to individual accounts
will be based on a formula combining the
participant’s age and length of service under
AMO contract
•Contributions will be based on individual benefit wages and earned vacation
•Benefit wages will always be current
•Contributions to individual accounts
will be made each month as they are
received from employers
•Contributions for earned vacation
days will be credited to individual accounts
at the same time as contributions for days
worked aboard vessels
•Participants will not be required to
file for benefits from the AMO Vacation
Plan in order to receive contributions earned
during vacation
•All deep-sea, Great Lakes and inland
waters AMO members and applicants for
AMO membership will be vested in the
plan immediately
•The new plan will be fully portable - participants who leave covered employment under AMO contract at any time for
any reason may receive their account balance (subject to applicable tax law).
•Initial account management will be
through a designated fund, but all partici-
pants will be able to direct account balances
to one of 25 mutual funds or to more than
one fund through either of four investment
models once the individual accounts are
active
•Participants will be able to track
their accounts online
•No loans will be available from individual accounts, and distributions will be
permitted only when participants actually
retire or leave employment under AMO
contract
Once the defined benefit AMO
Pension Plan is funded sufficiently under
the rehabilitation plan, the values of individual benefits due from the defined benefit
plan will be determined by an actuary, and
AMO members and applicants will be able
to transfer these defined benefit balances to
their individual defined contribution retirement savings accounts.
Please see the schedules on Page 7 for calculating contributions at 40 percent and 100 percent
IRS tentatively denies ‘return-to-work’ option of Pension Plan rehabilitation
plan; AMO Plans to schedule conference with IRS to review agency’s decision
As addressed in the AMO Pension Plan
rehabilitation plan — which was posted to the
AMO Plans Web site and distributed via
AMO Currents Nov. 13, 2009 — the joint
union-employer trustees of the American
Maritime Officers Pension Plan believe firmly that senior experienced AMO members
must remain in their jobs so that they are available to man government-owned and chartered
vessels in military sealift operations and
national security emergencies.
For this reason — in connection with
the adoption of the rehabilitation plan by the
AMO Pension Plan trustees — the trustees
asked the Internal Revenue Service (IRS) to
allow certain retired AMO members to return
to covered employment at sea with suspension
of their monthly retirement benefits while
working. If the return-to-work option were to
be adopted as part of the rehabilitation plan
without IRS approval, the AMO Pension Plan
could lose its status as a tax-qualified retirement plan.
Below is the response from the IRS,
which was received on Monday, January 25,
2010, tentatively denying the request. The
IRS has determined that an employee who
“retires” in order to qualify for a benefit, with
the understanding between the employee and
employer that there will be no separation of
service with the employer and that the
employee will continue to perform services
for the employer, is not legitimately retired
under the IRS rules relating to eligibility to
receive retirement benefits. Such “retirements” would violate section 401(a) of the
Internal Revenue Code and result in disqualification of the AMO Pension Plan under section 401(a) of the Code.
The trustees are entitled to request a
conference with the IRS to review this decision and present any additional information
that the trustees feel the IRS should take into
account before the ruling is finalized, and are
in the process of arranging such a conference.
Please continue to monitor Currents and the
AMO newspaper for updates on this issue.
Text of IRS letter
This letter is in response to your ruling
request, dated October 15, 2009, regarding the
Taxpayer’s request for a ruling regarding the
payment of subsidized early retirement benefits in conjunction with the default schedule
required by section 432(e)(1)(B)(U) of the
Internal Revenue Code (the “Code”).
The issue raised relates to the rehabili-
tation plan required as a result of the Plan’s
actuary certifying the Plan to be in critical status effective October 1, 2009. Section 432 of
the Code requires that the rehabilitation plan
include a default schedule, which must
assume that there are no increases in contributions under the plan other than those necessary
to emerge from critical status after future benefit accruals and other benefits have been
reduced by as much as the law allows.
The Taxpayer proposes to present to the
collective bargaining parties a default schedule that will eliminate all subsidized early
retirement benefits, including unreduced service pensions. The default schedule will eliminate the ability of participants with 20 or
more years of service to retire with an unreduced pension benefit. As a result, participants
who have sufficient service to retire without a
reduction in benefits will no longer be able to
do so once the default schedule is in place. The
Taxpayer anticipates that participants who are
eligible to retire and receive an unreduced service pension, over 300 participants, will elect
to retire rather than wait until age 65 to receive
their full pension benefit.
The Taxpayer also proposes to give
participants notice 60 days prior to the date
that the subsidized service pension benefit is
eliminated and that as part of this default
schedule, eligible participants who retire during this 60-day window may then return to
employment and have their benefits suspended while working.
The subsidized service pension benefit
in question is an early retirement pension benefit and the plan’s normal retirement age is 65.
Prior to elimination of the benefit, the
Taxpayer proposes to allow employees to
“retire” on one day in order to qualify for the
subsidized service pension benefit, and return
to work the very next day or perhaps after a
week has passed. In either case, neither the
employee nor the employer will plan on these
“retirees” actually terminating employment
and no longer performing services for the
employer when they “retire” and qualify for
their early retirement pension benefit.
Based on the aforementioned facts
you requested a ruling as to whether allowing participants who are eligible for subsidized early retirement benefits to “retire” on
one day in order to qualify for the early
retirement subsidy, and then immediately
return to work with payment of their early
retirement pension benefit suspended,
would result in disqualification of the Plan
under section 401 (a) of the Code.
Section 401 (a)(36) of the Code provides that, for plan years beginning after
December 31, 2006, a pension plan does not
fail to qualify under section 401 (a) solely
because the plan provides that a distribution
may be made to an employee who has attained
age 62 and who has not separated from
employment at the time of distribution.
Section 409A of the Code provides
when deferred compensation under nonqualified compensation plans is included in gross
income. Section 409A(a)(2)(A) provides, in
pertinent part, that compensation deferred
under a nonqualified deferred compensation
plan may not be distributed earlier than separation from service as determined by the
Secretary.
Section 432 (e) of the Code requires
that a rehabilitation plan must be adopted for a
multiemployer plan that is in critical status.
Section 432(e)(1)(B)(i) of the Code
indicates that the plan sponsor must provide to
the bargaining parties 1 or more schedules
showing revised benefit structures, revised
contribution structures, or both, which, if
adopted, may reasonably be expected to
enable the multiemployer plan to emerge from
critical status in accordance with the rehabilitation plan.
Flush language following section
432(e)(1)(B)(ii) of the Code provides that the
schedule or schedules described in subparagraph (B)(i) shall reflect reductions in future
benefit accruals and adjustable benefits (as
defined in 432(e)(8)(A)(iv)(II)) and increases
in contributions, that the plan sponsor determines are reasonably necessary to emerge
from critical status. One schedule shall be designated as the default schedule and such
schedule shall assume that there are no
increases in contributions under the plan other
than the increase necessary to emerge from
critical status after future benefit accruals and
other benefits (other than benefits the reduction or elimination of which are not permitted
under section 411(d)(6)) have been reduced to
the maximum extent permitted by law.
Section 432(e)(8)(A)(iv)(II) of the
Code provides that an adjustable benefit
includes any early retirement benefit or retirement-type subsidiary (within the meaning of
section 411 (d)(6)(8)(i)) and any benefit payment option (other than the qualified joint-and
survivor annuity).
Section 1.401-1 (a)(2) of the Income
Tax Regulations (“Regulations”) provides that
a qualified pension plan (i.e., a qualified
defined benefit plan or money purchase pension plan) is a definite written program and
arrangement that is communicated to employees and that is established and maintained by
an employer to provide for the livelihood of
the employees or their beneficiaries after the
retirement of such employees through the payment of benefits.
Section 1.401-1 (b)(1)(i) of the
Regulations provides that a qualified pension
plan must be established and maintained by an
employer primarily to provide systematically
for the payment of definitely determinable
benefits for employees over a period of years,
usually for life, after retirement.
Section 1.401(a)-1(b)(i) of the
Regulations provides that in order for a pension plan to be a qualified plan under section
401 (a), the plan must be established and
maintained by an employer primarily to provide systematically for the payment of definitely determinable benefits to its employees
over a period of years, usually for life, after
retirement or attainment of normal retirement
age (subject to paragraph (b)(2) of this section). A plan does not fail to satisfy the requirements of this paragraph (b)(1)(i) merely
because the plan provides, in accordance with
section 401 (a)(36), that a distribution may be
made from the plan to an employee who has
attained age 62 and who is not separated from
employment at the time of such distribution.
Section 1.401(a)-1(b)(1)(ii) of the
Regulations provides that section 1.4011(b)(1)(i), a pre-ERISA regulation, provides
rules applicable to the requirement of
§1.401(a)-1(b)(i), and that regulation is applicable except as otherwise provided.
Section 1.409A-1(h)(1)(i) of the
Regulations provides that in general an
employee separates from service with the
employer if the employee dies, retires, or otherwise has a termination of employment with
the employer.
Section 1.409A-1(h)(1)(ii) of the
Regulations provides that whether a termination of employment has occurred is based on
whether the facts and circumstances indicate
that the employer and employee reasonably
anticipated that no further services would be
performed after a certain date or that the level
of bona fide services the employee would perform after such date (whether as an employee
or as an independent contractor) would perSee IRS Letter ◆ Page 12
February 2010
The schedules below correspond to the article “AMO defined contribution pension plan at glance” on Page 6
Contribution Rates @ 40%
Contribution Rates @ 100%
Age
20-34
35-44
45-54
55 & over
Age
20-34
35-44
45-54
55 & over
Divisor
17.5
15
12.5
10
Divisor
7
6
5
4
5.50%
5.60%
5.70%
5.80%
5.90%
6.00%
6.10%
6.20%
6.30%
6.40%
6.50%
6.60%
6.70%
6.80%
6.90%
7.00%
7.10%
7.20%
7.30%
7.40%
7.50%
7.60%
7.70%
7.80%
7.90%
8.00%
8.10%
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%
9.00%
9.10%
9.20%
9.30%
9.40%
9.50%
9.60%
9.70%
9.80%
9.90%
10.00%
Age + Service
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Age + Service
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
1.14%
1.20%
1.26%
1.31%
1.37%
1.43%
1.49%
1.54%
1.60%
1.66%
1.71%
1.77%
1.83%
1.89%
1.94%
2.00%
2.06%
2.11%
2.17%
2.23%
2.29%
2.34%
2.40%
2.46%
2.51%
2.57%
2.63%
2.69%
2.74%
2.80%
2.86%
2.33%
2.40%
2.47%
2.53%
2.60%
2.67%
2.73%
2.80%
2.87%
2.93%
3.00%
3.07%
3.13%
3.20%
3.27%
3.33%
3.40%
3.47%
3.53%
3.60%
3.67%
3.73%
3.80%
3.87%
3.93%
4.00%
4.07%
4.13%
4.20%
4.27%
4.33%
4.40%
4.47%
4.53%
4.60%
4.67%
3.60%
3.68%
3.76%
3.84%
3.92%
4.00%
4.08%
4.16%
4.24%
4.32%
4.40%
4.48%
4.56%
4.64%
4.72%
4.80%
4.88%
4.96%
5.04%
5.12%
5.20%
5.28%
5.36%
5.44%
5.52%
5.60%
5.68%
5.76%
5.84%
5.92%
6.00%
6.08%
6.16%
6.24%
6.32%
6.40%
6.48%
6.56%
6.64%
6.72%
6.80%
6.88%
6.96%
7.04%
7.12%
7.20%
2.86%
3.00%
3.14%
3.29%
3.43%
3.57%
3.71%
3.86%
4.00%
4.14%
4.29%
4.43%
4.57%
4.71%
4.86%
5.00%
5.14%
5.29%
5.43%
5.57%
5.71%
5.86%
6.00%
6.14%
6.29%
6.43%
6.57%
6.71%
6.86%
7.00%
7.14%
5.83%
6.00%
6.17%
6.33%
6.50%
6.67%
6.83%
7.00%
7.17%
7.33%
7.50%
7.67%
7.83%
8.00%
8.17%
8.33%
8.50%
8.67%
8.83%
9.00%
9.17%
9.33%
9.50%
9.67%
9.83%
10.00%
10.17%
10.33%
10.50%
10.67%
10.83%
11.00%
11.17%
11.33%
11.50%
11.67%
9.00%
9.20%
9.40%
9.60%
9.80%
10.00%
10.20%
10.40%
10.60%
10.80%
11.00%
11.20%
11.40%
11.60%
11.80%
12.00%
12.20%
12.40%
12.60%
12.80%
13.00%
13.20%
13.40%
13.60%
13.80%
14.00%
14.20%
14.40%
14.60%
14.80%
15.00%
15.20%
15.40%
15.60%
15.80%
16.00%
16.20%
16.40%
16.60%
16.80%
17.00%
17.20%
17.40%
17.60%
17.80%
18.00%
13.75%
14.00%
14.25%
14.50%
14.75%
15.00%
15.25%
15.50%
15.75%
16.00%
16.25%
16.50%
16.75%
17.00%
17.25%
17.50%
17.75%
18.00%
18.25%
18.50%
18.75%
19.00%
19.25%
19.50%
19.75%
20.00%
20.25%
20.50%
20.75%
21.00%
21.25%
21.50%
21.75%
22.00%
22.25%
22.50%
22.75%
23.00%
23.25%
23.50%
23.75%
24.00%
24.25%
24.50%
24.75%
25.00%
February 2010
American Maritime Officers Simulation, Training, Assessment & Research Center
2 West Dixie Highway • Dania Beach, FL 33004 • (954) 920-3222
GENERAL COURSES
ISO 9001:2000 Lead
Auditor Training
ABS NS5 Fleet
Management Software
Advanced Fire Fighting
Basic Safety Training—All 4
modules MUST be completed
within 12 months
Personal Survival
Techniques (MondayTuesday)
Personal Safety & Social
Responsibility
(Tuesday
p.m.)
Elementary First Aid
(Wednesday)
5 days
Please Call
3 days
22 March
28-June
5 days
1 March
5 April
3 May
7 June
5 days
15 March - Cancelled
10 May
19 July
13 September
1 1/2 days
Basic Safety Training
8 March - For Great
Lakes Engineers
1/2 day
9 March - For Great
Lakes Engineers
1 day
12 May
21 July
15 September
5 July
Fire Fighting & Fire
Prevention (ThursdayFriday)—Not required if
2 days
“Combined Basic &
Advanced Fire Fighting”
completed within 12 months
Basic Safety Training Refresher
3 days
Crowd Management
1 day
Please Call
Crisis Management &
Human Behavior
1 day
Please Call
Effective Supervision
2 1/2 days
8 February
Fast Rescue Boat
4 days
1 March
12 April
6 July
30 August
GMDSS
10 days
15 March - NEW
17 May - NEW
16 August
27 September
Tankerman PIC LNG
8 days
1 March
19 July
22 February
22 March
17 May
23 August
27 September
LNG Simulator Training—Enrollment priority in the LNG simulator course is
given to qualified member candidates for employment and/or observation oppor5 days
tunities with AMO contracted LNG companies. Completion of the Tankerman
LNG PIC classroom course is a prerequisite.
Ocean Ranger Program
6 days
Proficiency in Survival Craft (Lifeboat)
2 August
6 September
20 September
21 April
4 days
22 February
26 April - DATE CHNG
5 days
15 March
12 July
23 August
10 days
26 April
21 June
30 August
Train The Trainer—Requires after hours homework
5 days
22 February
12 April
21 June
16 August
Vessel/Company/Port
Facility Security Officer
2 days
18 February
5 April
27 May
7 July
8 September
5 days
22 February - PM
Class
26 July
Advanced Shiphandling for Masters—(No equivalency) Must have sailed as
5 days
Chief Mate Unlimited
15 February
5 April
24 May
16 August
27 September
Advanced Shiphandling for Third Mates—(60 days seatime equivalency for
Third Mates)
10 days
12 April
10 May
21 June
9 August
20 September - PM
7 June
6 September
24 May
14 June
19 July
13 September
Tankerman PIC DL Classroom
Tankerman PIC DL Simulator
DECK COURSES
Advanced Bridge
Resource Management
Advanced (or emergency)
Shiphandling for First
Class Pilots, Great Lakes
Bridge Resource
Management Seminar
5 days
Please Call
3 days
24 May
Integrated Bridge System/Podded Propulsion
5 days
Locking & Docking—First
Class Pilots, Great Lakes
5 days
Please Call
STCW Deck Officer
Refresher
3 days
Please Call
Towing Officer Record Assessment—Third mate (Unlimited or Great Lakes)
5 days
or 1600-ton master license
Tug Training
5 days
Visual Communications
1 day
(Flashing Light)—test only
15 March
5 April
23 August
Please call
ENGINEERING COURSES
Advanced Slow Speed Diesel
10 days
17 May
Basic Electricity
10 days
10 May
30 August
Diesel Crossover
4 weeks
7 June
Electrical, Electronic, Control Engineering
4 weeks
20 September
7 June
20 September
Engine Room Resource Management
5 days
19 April
9 August
Environmental Awareness (includes Oily Water Separator)
3 days
15 March
17 May
12 July
Gas Turbine Endorsement
10 days
26 April
16 August
High Voltage Safety
3 days
29 March
14 July
22 February
12 April
24 May
15 March
14 June
27 September
Programmable Logic Controllers (PLCs)—An understanding of electricity is
required. Priority will be afforded to 2 AEs and 3 AEs.
Steam Crossover
4 weeks
5 days
12 July
Welding & Metallurgy—course is open to eligible chief mates and masters on
a space-available basis. Applications will only be confirmed two weeks prior to 2 weeks
start of course.
MSC TRAINING PROGRAM—includes self-study courses Afloat Environmental Protection Coordinator, Anti-Terrorism Level 1 and Crew Endurance Management (see that section).
CBRD Orientation
1 day
25 February
18 March
30 April
27 May
18 June
Damage Control
1 day
26 February
29 April
17 June
30 July
26 August
Heat Stress Afloat /
Hearing Conservation
Afloat
1 day
14 June
Helicopter Fire Fighting
1 day
24 May
14, 28 June
19 March
28 May
17 September
Marine Sanitation Devices 1/2 day
18 March
20 May
15 July
Medical PIC Refresher—
Note: Not MSC approved.
22 February
7 April
10 May
Small Arms - Initial & Refresher Training—Note:
Open to members/applicants eligible for employment
through AMO within one year on MSC or MARAD
vessels
3 days
15, 29 March
12, 26 April
Water Sanitation Afloat
18 March
20 May
15 July
3 days
1/2 day
29 July
27 August, 16 Sept.
12, 26 July
9, 23 August
13 September
February 2010
MARAD TRAINING PROGRAM—(11 day package composed of the courses below) Students will be nominated and assigned by their contracted company and shall attend all 11 days. Any places not
taken by the contracted companies shall be made available to the membership on a chronological order basis.
Small Arms Training (Initial & Refresher)—
Note: Open to members/applicants eligible for
employment through AMO within one year on
MSC or MARAD vessels
Elementary First Aid
3 days
22 February
28 June
27 September
30 September
1 day
25 February
1 July
Drug Collector Training
1 day
26 February
2 July
Breath Alcohol Test Collector
1 day
27 February
3 July
Advanced Fire Fighting
5 days
1 March
5 July
1 day
14 June
1 day
16 February
2 March
20 April
24 May
15 June
27 July
24 August, 21 Sept.
3 days
17 February
3 March
21 April
25 May
16 June
28 July
25 August, 22 Sept.
5 days
8 March
26 April
21 June
2, 30 August
27 September
3 days
22 February
7 April
10 May
Urinalysis Collector Training
1 day
15, 29 March
9 August
Breath Alcohol Test
1 day
16, 30 March
10 August
Saliva Screening Test — QEDs only
1/2 day
17 March
31 March
MEDICAL COURSES
Heat Stress Afloat / Hearing Conservation
Afloat
Elementary First Aid—Note: Prerequisite for
Medical Care Provider within preceding 12
months
Medical Care Provider—Note: Prerequisite for
Medical Person In Charge within preceding 12
months. Please fax EFA certificate when registering
Medical Person In Charge—Note: Please FAX
Medical Care Provider certificate when registering
Medical PIC Refresher—Note: Not MSC
approved.
11 August
RADAR COURSES
Radar Recertification
1 day
26 April
ARPA
4 days
27 April
Western Rivers Recertification
1 day
Please Call
Radar Recertification & ARPA
5 days
26 April
ECDIS
5 days
Original Radar Observer Unlimited
5 days
9 July
10 September
1, 15 March
10 May
14 June
19 April
12 July
SELF-STUDY CD & ONLINE PROGRAMS—Available for use when attending other approved classroom courses
Afloat Environmental Protection Coordinator (CD)
Anti-Terrorism Level 1 (Online)
DoT - Hazardous Materials Transportation Training (CD)
Crew Endurance Management (CD)
Prudent Mariner’s Guide to Right Whale Protection (CD)
EPA Universal Refrigerant Certification Examination
OFFICER IN CHARGE OF A NAVIGATIONAL WATCH—Successful completion of this program will satisfy the training requirements for STCW certification as third mate and second mate on vessels of
500 or more gross tonnage (ITC)
Terrestrial Navigation
10 days
15 March
Ship Construction & Stability
5 days
26 July
Electronic Navigation
5 days
8 March
30 August
Meteorology
5 days
15 February
9 August
Watchkeeping
10 days
29 March
20 September
Cargo Handling & Stowage
5 days
22 February
16 August
Basic Shiphandling at the Operational Level
5 days
12 April
4 October
Emergency Procedures and SAR
4 days
2 August
Celestial Navigation
10 days
12 July
Magnetic & Gyro Compass
3 days
1 March
6 September
23 August
OICNW— Additional required courses with priority to students enrolled in the OICNW program — GALLEY COURSES
Original License (Great Lakes) Courses (Deck &
As Required
Engine)
Please Call
5 days
19 April
RFPNW Assessments
1 day
4 March
GMDSS
10 days
15 March, 17 May
Marlin Spike
1 day
5 March
40-Hour Able Seaman
5 days
19 April - Cancelled
EFA/MCP
4 days
Please Call
Food Safety, Sanitation & Nutrition (ServSafe)
5 days
Please Call
Proficiency in Survival Craft (Lifeboat)
4 days
26 April
Culinary Fundamentals
10 days
Please Call
Original Radar
5 days
19 April
Advanced Steward Course
5 days
15 February
Please Call
GALLEY COURSES
DECK LICENSE UPGRADE: SECOND OFFICER TO CHIEF MATE / MASTER—Successful completion of this program will satisfy the training requirements for STCW certification as Master or Chief Mate on
vessels of 500 or more gross tonnage (ITC). This program will complete ALL 53 Control Sheet assessments of the training requirements for STCW. Course completion certificates do not expire. Operational
level officers (3/M and 2/M) interested in advancing to Chief Mate/Master (Management) Level are encouraged to start obtaining the required courses as soon as practical after acquiring OICNW experience.
Advanced Navigation and a USCG approved ECDIS course must be completed within 12 months of each other to satisfy the Management Level upgrade course and assessment requirements.
Cargo Operations
8 March
26 April
21 June
23 August
Celestial Navigation—Note: A thorough review and understanding
of the topics covered in Parts 4 & 5 of Pub. Number 9, The American 5 days
Practical Navigator (Bowditch), is a prerequisite.
9 days
22 February
12 April
7 June
9 August
Marine Propulsion Plants
5 days
22 March
10 May
19 July
Shipboard Management
5 days
22 March
10 May
19 July
13 September
Upgrade: Advanced Meteorology
5 days
1 March
19 April
14 June
16 August
Upgrade: Advanced Navigation - ECDIS—Advanced Navigation
and a USCG-approved ECDIS to be completed within 12 months of
each other
5 days
15 February
5 April
24 May
16 August
Upgrade: Advanced Navigation (Includes Simulator)
5 days
29 March
17 May
9 August
20 September
Upgrade: Shiphandling at the Management Level
10 days
8 March
26 April
21 June
23 August
Upgrade: Stability—Note: It is recommended that chapters 1-13 in
the book Stability and Trim for the Ship’s Officer be reviewed prior to 5 days
attending this course
29 March
17 May
26 July
Watchkeeping 1 (Bridge Resource Management)—Note:
Watchkeeping Weeks 1 and 2 MUST be completed within 12 months 3 days
of each other.
24 February
14 April
9 June
28 July
Watchkeeping 2 (COLREGS)—Note: Watchkeeping Weeks 1 and 2
5 days
MUST be completed within 12 months of each other.
1 March
19 April
14 June
2 August
27 September
NOTICE: AMO members planning to attend the union’s Center for Advanced Maritime Officers’ Training/STAR Center in Dania Beach, Florida—either to prepare for license upgrading or to undergo specialty training—are asked to call the
school to confirm course schedule and space availability in advance.
NOTICE OF NON-DISCRIMINATION POLICY AS TO STUDENTS: The Center For Advanced Maritime Officers Training (CAMOT) and Simulation Training Assessment and Research Center (STAR), established under the auspices of the
American Maritime Officers Safety and Education Plan, admits students of any race, color, national and ethnic origin or sex to all the rights, privileges, programs and activities generally accorded or made available to students at the Center.
It does not discriminate on the basis of race, color, national or ethnic origin or sex in administration of its educational policies, admission policies and other programs administered by the Center.
February 2010
GALVESTON, TX 77551
2724 61st Street, Suite B
PMB 192
David M. Weathers, National Executive Board Member At Large
([email protected])
(800) 362-0513 ext. 2001
Mobile: (409) 996-7362
HEADQUARTERS
DANIA BEACH, FL 33004
(954) 921-2221 / (800) 362-0513
Thomas J. Bethel, National President ([email protected])
José E. Leonard, National Secretary-Treasurer ([email protected])
Jack Branthover, Special Assistant to the National President
([email protected])
FAX: (954) 926-5112
Joseph Z. Gremelsbacker, National Vice President, Deep Sea
([email protected])
John K. Hafner, National Executive Board Member At Large
([email protected])
Charles A. Murdock, National Executive Board Member, Inland Waters
([email protected])
FAX: (954) 920-3257
Dispatch: (800) 345-3410
FAX: (954) 926-5126
Brendan Keller, Dispatcher ([email protected])
Robert Anderson, Dispatcher ([email protected])
Member Services: Extension 1050 (memberservices@amo-union. org)
PORTS
TOLEDO, OH 43604
The Melvin H. Pelfrey Building
One Maritime Plaza
(419) 255-3940
(800) 221-9395
FAX: (419) 255-2350
Donald N. Cree, National Vice President, Great Lakes
([email protected])
Brian D. Krus, National Assistant Vice President, Great Lakes
([email protected])
Stan Barnes, National Representative ([email protected])
Bruce DeWerth, Dispatcher ([email protected])
NORWOOD, NJ 07648
463 Livingston Street, Suite 102
PMB 60
Donald R. Nilsson, National Executive Board Member, Deep Sea
([email protected])
(800) 362-0513 ext. 3004
Mobile: (201) 913-2209
WASHINGTON, D.C.
WASHINGTON, D.C. 20024
490 L’Enfant Plaza East SW, Suite 7204
(202) 479-1166 / (800) 362-0513 ext. 7001
J. Michael Murphy, National Vice President At Large
([email protected])
Paul Doell, Legislative Director ([email protected])
Phree Baker, Assistant Legislative Director ([email protected])
FAX: (202) 479-1188
STAR CENTER
STUDENT SERVICES/LODGING AND COURSE INFORMATION
(954) 920-3222 ext. 201 / (800) 942-3220 ext. 201
Course Attendance Confirmation: (800) 942-3220 ext. 200
FAX: (954) 920-3140
24 Hours: (954) 920-3222 ext.7999
TRAINING RECORDS SYSTEM:
Lisa Marra
(954) 920-3222 ext. 7118
FAX: (954) 925-5681
[email protected]
MEMBERSHIP SERVICES
PHILADELPHIA, PA 19113
2 International Plaza, Suite 422
Robert J. Kiefer, National Executive Vice President ([email protected])
(800) 362-0513 ext. 4001 / 4002
Mobile: (215) 859-1059
FAX: (610) 521-1301
SAN FRANCISCO / OAKLAND, CA 94607
1121 7th Street, Second Floor
Oakland, CA 94607
(510) 444-5301
(800) 362-0513 ext. 5001
Daniel E. Shea, National Executive Board Member At Large
([email protected])
FAX: (510) 444-5165
2010 Great
Lakes area
meetings
MARITIME MEDICAL CENTER
(954) 927-5213
FAX: (954) 929-1415
AMO PLANS
(800) 348-6515
FAX: (954) 922-7539
LEGAL
Joel Glanstein, General Counsel
305 Madison Ave. Suite 2240
New York, NY 10165
(212) 370-5100
FAX: (212) 697-6299
Michael Reny
AMO Coast Guard Legal
Aid Program
(419) 243-1105 / (888) 853-4662
Mobile: (419) 346-1485
[email protected]
ALPENA, MICHIGAN
TRAVERSE CITY, MICHIGAN
DULUTH, MINNESOTA
7 p.m. TUESDAY
FEBRUARY 16, 2010
Holiday Inn
US 23 North
Phone: (989) 356-2151
4 p.m. WEDNESDAY
FEBRUARY 17, 2010
Holiday Inn on the Bay
615 E Front Street
Phone: (231) 947-3700
4 p.m. THURSDAY
FEBRUARY 18, 2010
Holiday Inn
2nd Avenue, W 1st Street
Phone: (218) 722-1202
Radar Recertification courses now
available to AMO members in Toledo
STAR Center has formalized an agreement with the Toledo Maritime Academy to
provide Radar Recertification courses to eligible participants of the AMO Safety &
Education Plan. Although the courses are open to all eligible members of American
Maritime Officers, STAR Center developed this program specifically for the convenience
of members sailing on the Great Lakes.
Interested participants should apply to Student Services in Dania Beach, which will
coordinate enrollment with the academy. A STAR Center Radar Recertification certificate
will be issued upon successful completion of the course. All enrollment applications must
be received and processed at least two days prior to each class, and walk-ins will not be
accepted.
Remaining 2010 course dates have been scheduled as follows: Feb. 18, March 4 and
March 18.
Enrollment questions or applications should be directed to Student Services at (800)
942-3220 Ext. 201 or via e-mail to [email protected].
Regular monthly membership meetings for AMO will be held during the week
following the first Sunday of every month at 1 p.m. local time. Meetings will be
held on Monday at Headquarters in Dania (on Tuesday when Monday is a contract holiday) and on Wednesday in Toledo. The next meetings will take place
on the following dates:
DANIA BEACH:
TOLEDO:
March 8, April 5
March 10, April 7
February 2010
New contracts, significant gains for AMO members
Union secures agreements covering Maersk Line Limited tankers, Seabulk tankers
Maersk Line Limited tankers
American Maritime Officers has
secured a new three-year agreement featuring significant wage increases with Maersk
Line Limited covering the tankers Rhode
Island and Michigan.
The negotiating committee met with
Maersk Line Limited executives Jan. 5 to 8
at the AMO office in Washington, D.C.
Rank-and-file AMO members serving on
the negotiating committee with AMO
National Executive Vice President Bob
Kiefer and AMO Contract Analyst Chris
Holmes were Patrick McGroggan, master
of the Maersk Rhode Island, and Michael
Ross, master of the Maersk Michigan.
“The bargaining committee members
contributed direct knowledge of the ships’
operating requirements and working conditions, and assisted tremendously in achieving our goals at the bargaining table,”
Kiefer said. “The final agreement reflects
Maersk Line’s understanding of the need
for crew continuity on these ships and their
willingness to reward the AMO officers
who man them for their performance,
expertise and professionalism.
“Our negotiating team was successful
in achieving wage parity for the Michigan
and Rhode Island with other AMO-contracted companies. This resulted in acrossthe-board increases for all licensed ratings
for the life of this agreement, and substantial wage gains for the senior officers,”
Kiefer said. “The committee was also successful in negotiating increases in travel pay
and favorable changes in rotation periods.”
The three-year agreement includes all
actuarially required increases in contributions to the AMO Plans and incorporates the
necessary language for the AMO Pension
Plan rehabilitation plan.
The new agreement will apply to the
Maersk Michigan while it is operating
under a bareboat charter to Argent Marine
in the Maritime Security Program fleet.
AMO members serving on the negotiating committee for the Maersk Line
Limited tankers with AMO National Executive Vice President Bob Kiefer and
AMO Contract Analyst Chris Holmes were Patrick McGroggan, master of the
Maersk Rhode Island, and Michael Ross, master of the Maersk Michigan.
AMO members serving on the negotiating committee (front row: left to right)
were Michael Kurr, master of the Seabulk America, and Rex Kelley, chief engineer of the Seabulk Trader. With them are AMO National Executive Vice
President Bob Kiefer, AMO Contract Analyst Chris Holmes, AMO National
Secretary-Treasurer José Leonard (former Seabulk captain) and AMO National
Executive Board Members Dave Weathers (former Seabulk chief engineer) and
Charles Murdock.
Seabulk Tankers
American Maritime Officers in
January secured a new three-year agreement covering six ships operated by
Seabulk Tankers.
Rank-and-file AMO members serving on the negotiating committee were Rex
Kelley, chief engineer of the Seabulk
Trader, and Michael Kurr, master of the
Seabulk America.
“The committee members are to be
commended for securing an agreement with
across-the-board wage increases in each
year of the contract, as well as improvements in the travel per diem during crew
changes,” said AMO National Executive
Vice President Robert Kiefer. “These gains
were made despite weak energy markets, a
depressed economy and a sizable influx of
new tonnage into the energy transportation
trades.”
The agreement signed in January is
retroactive to the expiration of the previous
contract and includes all required increases
in contributions to the AMO Plans and the
necessary language for the AMO Pension
Plan rehabilitation plan.
The STAR Center course application form will be printed in the March edition and is available online at www.amo-union.org/PDFs/STARapplication.pdf
Construction of AMO headquarters
proceeding on schedule, on budget
The construction of a headquarters
building for American Maritime Officers in
Dania Beach, Fla., is proceeding on schedule
and on budget. AMO National SecretaryTreasurer José Leonard, who is overseeing
the project, expects the building will be completed in November of this year and ready for
occupancy by January 2011.
“I’m pleased with the progress so far
and we’re on track to have the building itself
completed this year,” Leonard said. “There
have been some minor delays along the way
in the permitting process with the city of
Dania Beach, mostly due to the unique
nature and purpose of the building with
regard to current city codes for commercial
and retail development. These issues have
been resolved.
“Commercial construction in this area
is at a low, so from AMO’s standpoint, this is
the best time for an undertaking of this magnitude,” Leonard said. “The timing of this
project has saved AMO a significant amount
of money and the headquarters building will
be a standout in the Dania Beach corridor of
Federal Highway.
“This headquarters building will be a
very important asset for AMO members,” he
said. “All union offices and resources will be
consolidated under one roof for the convenience of the membership. Currently we
operate out of three and sometimes four different locations here in Dania Beach. This
building will feature a spacious meeting hall,
conference rooms, and ample office space
for AMO members to conduct business in a
professional and confidential setting.”
The headquarters project originated
January 8, 2010
November 24, 2009
when the AMO Safety and Education Plan,
which operates STAR Center, expressed an
interest in purchasing the land upon which
the STAR Center, student housing, AMO
Plans and AMO union facilities reside. The
union owned the 6.5 acres of land and some
of the buildings, while the AMO Safety and
Education Plan owns the four-story building
that is the core of STAR Center training programs. Because the union owned the land,
the S&E Plan was required to obtain a special permit from the federal government
(known as a ‘prohibited transaction exemption’) any time structural changes or expansion were needed.
This arrangement had for years hindered or rendered impossible much needed
expansion of STAR Center classroom and
training capacity.
Following the approval of a prohibited
transaction exemption by the Department of
Labor, the AMO Safety & Education Plan
purchased the 6.5 acres of land and buildings
owned by the union. A portion of the proceeds from the sale is being used to pay for
the construction of the AMO headquarters
building on land owned outright by the union
across the street from the AMO Plans/STAR
Center campus. The balance of the purchase
price will remain in the union’s treasury.
The union conducted a 90-day unionwide secret ballot referendum, in which construction of the new AMO headquarters
building was approved by a 66-percent margin on July 16.
Due to the extremely depressed construction market in South Florida, building
contractors submitted bids that were approximately $1 million lower than had been originally estimated for construction of the headquarters building as designed. AMO accepted a bid for $3.9 million, and sold the 6.5
acres of land and buildings to the AMO
Safety & Education Plan for a fair market
value of $10 million.
“The construction of AMO headquarters benefits both the union membership and
AMO Plans,” said AMO National President
Tom Bethel. “AMO will have a home base to
meet the professional needs of the membership and a headquarters that reflects AMO’s
status as the largest American union of merchant marine officers.
“It’s important for everyone to understand the S&E Plan had set aside the money
for this purchase, and the money from the
Safety and Education Trust could not be
transferred to the Pension Plan under any circumstances,” Bethel said. “Not everyone
realizes this project arose from the S&E
Plan’s dire need to expand training and
administrative capacity. STAR Center can
now move ahead with expansion and renovation as needed to better serve AMO members attending courses in Dania Beach.”
February 2010
Ocean Atlas delivers for
New York transit project
AMO National
President Tom
Bethel joins
Ocean Atlas
Chief Mate
Scott Lund and
Master Jeff
Raider on the
bridge wing at
the ceremony
marking the
completion of
the U.S.-flag
shipments of
subway car
bodies for the
New York City
Transit Authority
project.
When the Ocean Atlas arrived at the
Port of Baltimore on Jan. 5, carrying 40 subway car body shells, it fulfilled an important
milestone in the largest rail contract in U.S.
history.
A partnership between the Maritime
Administration, New York City Transit
Authority and Intermarine, among others, the
project represents a substantial upgrade to
New York City’s subway system. When the
Ocean Atlas arrived with its latest cargo, it
signified the completion of the contract’s
U.S.-flag requirement.
In all, the Ocean Atlas made 18 trips to
Brazil and back while shipping the subway
car bodies.
“AMO is proud to be a part of the
achievement of the Ocean Atlas in this
important U.S.-flag project,” said AMO
National President Tom Bethel, who represented the union at the ceremony in the Port
of Baltimore. “This occasion exemplifies
the professionalism of AMO officers, the
sound fleet management of Pacific-Gulf
Marine and immense value of the Maritime
Security Program to our nation’s defense
and commerce.”
The Maritime Administration “is
extremely pleased to support a project that
employs the men and women who serve in
America’s merchant marine,” said Tom
Harrelson, MARAD director of cargo preference and domestic trade. “It is vital to
support this industry that is so critical to our
country’s defense. Merchant mariners are
the first ones in and the last out of the combat zone.”
Former Congresswoman Helen
Bentley, who played an important role in
passing the 1954 Cargo Preference Act,
spoke at the port. “I commend everybody
who was involved and thank you for everything you’re doing and continue to do for the
U.S. merchant marine,” she said.
The Ocean Atlas is one of two U.S.flagged heavy-lift ships operated in the
Maritime Security Program fleet by PacificGulf Marine and manned in all licensed positions by American Maritime Officers. The
other heavy-lift ship in the MSP fleet is the
Ocean Titan. Additionally, AMO represents
all licensed officers aboard a third heavy-lift
sister ship, the Ocean Charger. All three
ships are operated by PGM for Intermarine.
Those attending the ceremony at the Port of Baltimore included AMO National
President Tom Bethel, Capt. Jeff Raider — master of the Ocean Atlas,
Intermarine President Andre Grikitis, and former Congresswoman Helen Bently.
IRS Letter
“break in service” rules to an elapsed time
method of crediting service under 1.410(a)-7.
Section 1.410(a)-7(b)(6) of the
Regulations defines “period of service” in pertinent part, generally as a period of service
commencing on the employee’s employment
commencement date and ending on the severance from service date.
Revenue Ruling 79-336,1979-2 C.B.
187, provides that, for purposes of the special
forward averaging treatment of lump sum distributions under §402(d), an employee will be
considered separated from service within the
meaning of §402(e)(4)(D) (formerly
402(e)(4)(A)) of the Code only upon the
employee’s death, retirement, resignation, or
discharge, and not when the employee continues on the same job for a different employer as
a result of the liquidation, merger, or consolidation, etc. of the former employer.
Meredith v. Allsteel, Inc., 11 F.3d 1354
(7th Cir. 1993), in deciding on what date an
employee actually retired, concluded by
applying common law rules of contract interpretation, that the word retire is to be given its
ordinary meaning. The court opined: “In common parlance, retire means to leave employment after a period of service. See Webster’s
Ninth New Collegiate Dictionary 1007 (1986)
(retire is “to withdraw from one’s position or
occupation: to conclude one’s working or professional career”).”
Ahng v. Allsteel, lnc. 96 F.3d 1033 (7th
Cir. 1996) in reviewing Meredith v. Allsteel,
Inc., 11 F.3d 1354 (7th Cir. 1993) (with regard
to its earlier decision on the question of
whether the anti-cutback rule of the
Retirement Equality Act of 1984, Pub. L. No
98-397, 98 Stat. 1426 (1984), which amended
ERISA § 204(g), should be interpreted to prohibit pension plan amendments or terminations that reduce or eliminate an employee’s
ability to participate in early retirement benefits) let stand the definition of the word retire
provided in Meredith.
Taken together, sections 1.409A1(h)(1)(i) and 1.409A-1(h)(1)(ii) provide that
when an employee legitimately retires, he separates from service with the employer.
Accordingly if both the employer and
employee know at the time of “retirement”
that the employee will, with reasonably certainty, continue to perform services for the
employer, a termination of employment has
not occurred upon “retirement” and the
employee has not legitimately retired.
Section 1.410(a)-7(b)(2) defines the
“severance of service date” as the earlier of the
date on which an employee quits, retires, is
discharged or dies, or the first anniversary of
the first date of absence or for any other reason. Section 1.410(a)-7(b)(6) defines “period
of service” as generally ending on an employee’s severance of service date. Taken together,
sections 1.410(a)-7(b)(2) and 1.410(a)-7(b)(6)
provide that an employee retires on a severance of service date, when his period of service ends.
In Meredith v. Allsteel Inc., the seventh
circuit court of appeals defined the word retire
to have its ordinary meaning. Specifically the
court provided that in common parlance, retire
means to leave employment after a period of
service mentioning that Webster’s Ninth New
Collegiate Dictionary 1007 (1986) defined
retire as: “to withdraw from one’s position or
occupation: to conclude one’s working or professional career. In Ahng v. Allsteel, Inc.,
while reviewing the Meredith case, the same
court retained this definition of the word retire.
Accordingly an employee would not legitimately retire if he did not actually leave
employment upon retirement.
Although section 409A and its regulations address a nonqualified plan arrangement the definitions regarding termination
and separation from service are consistent
with the definition of “severance of service
date” found in 1.410(a)-7(b)(2) and both are
consistent with the conclusion of Revenue
Ruling 79-336. These regulations and
Revenue Ruling serve to clarify that an
employee legitimately retires when he stops
performing service for the employer and
there is not the explicit understanding
between the employer and employee that
upon retirement the employee will immediately return to service with the employer.
That an employee severs his employment
with the employer when he retires is directly expressed in the definition of the word
retire found in Meredith v. Allsteel Inc.
On November 10, 2004, a notice of
proposed rulemaking (REG-114726-04)
under section 401 was published in the
Federal Register (69 DE 65108) (the “proposed regulations”). The proposed regulations
provided rules permitting distributions to be
made from pension plan under a phased retirement program and set forth requirements of
Continued from Page 6
manently decrease to no more than 20 percent
of the average level of bona fide services performed) whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of
services to the employer if the employee has
been providing services to the employer less
than 36 months).
Regulations also provides that facts and circumstances to be considered in making this
determination include, but are not limited to,
whether the employee continues to be treated
as an employee for other purposes (such as
continuation of salary and participation in
employee benefit programs), whether similarly situated service providers have been treated
consistently, and whether the employee is permitted, and realistically available, to perform
services for other service recipients in the
same line of business.
Regulations provides the following example: An employee may demonstrate that the
employer and employee reasonably anticipated that the employee would cease providing services, but that, after the original cessation of services, business circumstances
such as termination of the employee’s
replacement caused the employee to return
to employment. Although the employee’s
return to employment caused the employee
to be presumed to have continued in
employment because the employee is providing services at a rate equal to the rate at
which the employee was providing services
before the termination of employment, the
facts and circumstance in this case would
demonstrate that at the time the employee
originally ceased to provide services, the
employee and the service recipient reasonably anticipate that the employee would not
provide services in the future.
Section 1.410(a)-7(b)(2) of the
Regulations defines “severance of service
date” as the earlier of the date on which an
employee quits, retires, is discharged or dies, or
the first anniversary of the first date of absence
or for any other reason. The severance of service date is used to provide an endpoint for
crediting service and to apply the statutory
bona fide phased retirement program. The
preamble to the proposed regulations provides
that the proposed regulations: “specifically do
not endorse a prearranged termination and
rehire as constituting a full retirement.”
In accordance with §§1.401(a)1(b)(1)(i) and 1.401-1(b)(1)(i), because a
qualified pension plan is generally not permitted to pay benefits before retirement, an
employee who “retires” with the explicit
understanding between the employer and
employee that upon retirement the employee
will immediately return to service with the
employer has not legitimately retired and may
not qualify for an early retirement benefit
under the Plan.
We have tentatively concluded that
employees who “retire” on one day in order to
qualify for a benefit under the Plan, with the
explicit understanding between the employee
and employer that they are not separating
from service with the employer, are not legitimately retired. Accordingly because these
employees would not actually separate from
service and cease performing services for the
employer when they “retire” these “retirements” would not constitute a legitimate basis
to allow participants to qualify for early retirement benefits (which are then immediately
suspended.) Such “retirements” will violate
section 401(a) of the Code and result in disqualification of the Plan under section 401(a)
of the Code.
However, in accordance with section
401(a)(36) of the Code, employees who have
attained age 62 upon benefit commencement
may qualify for and receive an early retirement benefit under the Plan white they continue in employment.
Please note that this ruling does not
express any other opinion regarding the suitability of the proposed default schedule or the
associated rehabilitation plan.
This ruling letter is directed solely to
the taxpayer who requested it. Section
6110(k)(3) of the Code provides that it may
not be used or cited by others as precedent.
In accordance with section 12.01 of Rev.
Proc. 2009-4, you are entitled to request a
conference of right to review this decision
and present additional information that you
believe the Service should take into account
before finalizing this ruling. This conference
may be held either by telephone or at the
IRS offices in Washington, D.C.

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