After a lively debate, the 25th Convention adopted a resolution to support and promote the VEBA Trust for retiree medical benefits. The Trust was started by the union in 2005.
ILWU units must vote to join the program and pay the $3 a month contribution on behalf of their members. The $3 comes out of the unit fund. Members are also encouraged to make additional “supplemental contributions” on their own, which will increase their benefit when they retire.
Units which have not yet joined the program may still vote to join the VEBA Trust.
RCA-1 - Resolution to promote the VEBA Trust
Medical coverage is crucial to everyone’s well-being. With insurance, health care can be affordable and accessible. Without insurance, however, a person must decide between getting needed health care and doing without, leading to potentially more serious and costly medical conditions.
Hanalei Peters, from the Kaanapali Beach Hotel, spoke in favor of the VEBA Trust. He reminded delegates that many benefits we enjoy today come from contributions by union members in the past. Peters urged delegates to think about how the VEBA program will help their children and future union members.
Yet for many ILWU members, medical coverage ends just when their need is the greatest. Very few ILWU members have medical coverage when they retire. Instead, they are forced to purchase medical insurance on their own or pay for all medical expenses out-of-pocket until they become eligible for Medicare.
That is why delegates to the Local Convention in 2003 took action to establish a Voluntary Employee Beneficiary Association (VEBA) Trust when sufficient numbers of members voted to participate in the program. By 2005, after numerous meetings with members on all islands, the VEBA program was put into place and contributions to the Trust began. With these contributions, participating members are expected to receive a benefit toward payment of expenses for medical costs when they retire.
However, the amount that a member may receive when eligible is likely to be small, even with contribution investments, because the monthly contribution itself is relatively small ($3). That is why the Local encourages members participating in the VEBA Trust to increase their monthly contributions with voluntary Supplemental Contributions.
Supplemental Contributions may be made at any time and in any amount, but the earlier the contributions are made, the greater the potential for investment earnings.
NOW THEREFORE BE IT RESOLVED that the 25th Convention of ILWU Local 142 encourages units to participate in the ILWU Local 142 VEBA Trust to allow unit members to benefit from postretirement benefits; and
BE IT FURTHER RESOLVED that the 25th Convention of ILWU Local 142 also encourages members of participating units to consider Supplemental Contributions to increase future benefits.
VEBA Trust Benefit Statements
If your unit voted to participate in the ILWU VEBA Trust, you should have received a “Benefit Statement” that shows how much was contributed on your behalf for 2005, 2006 and 2007.
This is not a bill. It shows you how much was contributed and where the gaps in contribution are. If you don’t have at least $36 credited to you each year, you may want to make a payment to bring your account up to date. Contact the plan administrator, Pacific Administrators, Inc., at 441- 8600 or 1-888-520-8078 for more information.
A VEBA Handbook of Benefits is also available at each Division. Call the Division Office or your Business Agent to obtain a copy. The handbook includes forms for “Continuation of Required Contributions” if you leave your unit and for “Supplemental Contributions” to add to your account.
One member who has made Supplemental Contributions is Eddie Sekigawa of Island Movers. An active member of his unit, Eddie also served on the Local Executive Board. Eddie said he sent in a check for $500 as an “investment in my future.” While he has some years to go before he reaches retirement age, Eddie as a wise member is already planning for his retirement. He said, “We should all plan for our future. Saving and investing just makes sense.”
If you’d like to add to your VEBA account, complete the Supplemental Contribution Form in your handbook and send in your payment. You can do this at any time.
ILWU seated on national AFL-CIO Executive Council
ILWU International President Robert McEllrath was one of nine new vice presidents elected to 52- member AFL-CIO Executive Council. This will give the ILWU a greater voice in helping to shape our nation's labor policies at the AFL-CIO.
Delegates to the 2009 AFL-CIO Convention held this September in Pittsburgh, PA, also elected Richard Trumka as the labor federation’s new president. Trumka was nominated by outgoing President John Sweeney, who praised his energy and dedication.
For the first time in history, two women were elected as executive officers of the 11.5 million member AFL-CIO. Arlene Holt Baker was elected Executive Vice President and Liz Shuler was elected SecretaryTreasurer.
UNITE-HERE also announced to the Convention they would rejoin the AFL-CIO. This should put an end to the anti-ILWU activities of the Hawaii local of Unite-HERE which competes with the ILWU in organizing hotel workers.
The next ILWU Local 142 Executive Board meeting is scheduled for December 18, 2009, in Honolulu at the ILWU building on 451 Atkinson Drive. The meeting begins at 9:00 a.m. and will end in the afternoon. ILWU members are welcome to attend and observe the proceedings.
