NMU JOINT EMPLOYMENT REPORT DECEMBER 31, 1976 KIPNIN & KAREHMPH, CERTIFIED PUBLIC AccouRTAMIR, New York, NY, May 2, 1977 Board of Trustees, NMU Joint Employment Committee We have examined the statements of assets and liabilition of the NMU dom Employment Committee as of December 31, 1976 and December 21, 1975, and the related statement of changes in net assets available for plan benative for the yout ended December 31, 1976. Our examinations were made in woordens with gender) ly accepted auditing standards and, accordingly, included much that the wrink ing records and such other auditing procedures we we were In our opinion the financial statements referred to wank yousand Away had financial position of the NMC Jom ka poques you of t 28f and December 12 276 and the rena da persona by a December 1 29€ in soformny way your y wikiah, we Det DI & DERE Conssen wit va d'ze yes 4 yrs EXHIBIT B Statement of changes in net assets available for plan benefits for the year ended December 31, 1976 -104,757 Net deficiency in assets available for plan benefits at beginning of year. Net assets available for plan benefits at end of year......... Note. See notes to financial statements. NOTES TO FINANCIAL STATEMENTS, DECEMBER 31, 1976 9,564 General.-In January, 1974, a new agreement was executed by the National Maritime Union of America and various maritime companies and agents whereby the NMU Joint Employment Committee was established under an Agreement and Declaration of Trust. Previously, the committee had been established under a stipulation by the same parties dated March 1, 1968. Under the provisions of the Agreement, as amended, the trustees are authorized to use the assets of the Fund to help defray the costs and expenses of the operation and maintenance of employment offices from which the employers obtain unlicensed seamen. Under the terms of the latest collective bargaining agreement, employers are obligated to contribute at set rates to the NMU Joint Employment Committee for the three contract years from June 16, 1975 through June 15, 1978. For the year 1976 employer contribution rates were 60 cents per man-day. The Plan is non-contributory for employees and is funded mainly from contributions received from employers. In the event of termination of the Trust, the trust funds are to be used to continue the payment of expenses provided for in the Trust and to otherwise effectuate the purpose of the Trust. Note 1.-The Joint Employment Committee's significant accounting policies are summarized as follows: The Joint Employment Committee uses the accrual method of accounting for financial statements. The balance sheets include as contributions receivable amounts received subsequent to balance sheet dates which were applicable to the periods under review. These amounts are also included in contributions from employers on the statements of operations for the applicable years. KIPNIS & KARCHMER, CERTIFIED PUBLIC ACCOUNTANTS, New York, N. Y., May 2, 1977. Board of Trustees, NMU Joint Employment Committee. GENTLEMEN: The basic financial statements of NMU Joint Employment Committee, namely, the statements of assets and liabilities at December 31, 1976 and December 31, 1975 and the related statement of changes in net assets available for plan benefits for the year ended December 31, 1976, and our Accountants' Report on these financial statements are included in the section preceding this letter. The data in Schedules "1" through "3" which follow this letter are presented primarily for supplementary analysis purposes and are not considered necessary for a fair presentation of the Fund's financial position at December 31, 1976 and December 31, 1975 and the results of its operations for the year ended December 31, 1976. Our examination, which is set forth in our Accountants' Report, was made primarily for the purpose of formulating an opinion on the aforementioned financial statements, taken as a whole. Although our examination included tests of revenues and expenses, these tests were not extended in such detail as to enable us to express an opinion as to the fair presentation of the individual items of revenue and expenses as shown in Schedules "1" through "3". Accordingly, we do not express an opinion thereon. Very truly yours, KIPNIS & KArchmer. Supplemental schedule for the year ended December 31, 1976-Contributions from employers American Bear Steamship Co., Inc., San Francisco, Calif. 6,874 1,882 American Eagle Tanker Corp., New York N.Y. 5,982 American Export Lines, Inc., New York, NY. 138,728 American Foreign Steamship Corp., New York, N.Y. 4,41% American Trading Transportation Co., Inc., New York, NY. Amoco Shipping Co., Chicago, Ill.......... 27,229 Baldbutte Shipping Co., Philadelphia, Pa.. 5,414 Chas. Kurz & Co., Inc., Philadelphia, Pa. Lykes Bros. Steamship Co., Inc. New Orleans, La Paerso Race Marine Management is. Ezera Ni States Marine International New York NY Sunexport New York NT exact Inc. New York NY • NOTE.-Reference is made to the accompanying accountants' letter related to data contained in these schedules. NOTE.-Reference is made to the accompanying accountants' letter related to data contained in these schedules. NMU PENSION AND WELFARE PLAN, WELFARE Plan Report FOR THE YEAR ENDED DECEMBER 31, 1977 MARTIN E. SEGAL CO., New York, N. Y., July 26, 1978. Board of Trustees, National Maritime Union Pension and Welfare Plan, New York, N.Y. GENTLEMAN: Here is our Annual Report for the year ended December 31, 1977. This Report reviews the experience of the Welfare Plan in 1977 and projects the expected experience in 1978. For the third consecutive year the Plan experienced an operating deficit. Man-days of contributions continued to decline as did the number of covered seamen but benefits paid increased substantially. The prospects for 1978 are for an operating deficit. But as you will see, that's because the increased contributions called for by the new Memorandum of Understanding are effective only for a little more than half the year. On a full year basis, beginning July 1, 1978 the projection shows an operating surplus, including the dental plan improvement. Sincerely, The following are some of the highlights of 1977: Employer contributions decreased 2 percent as compared to 1976. Man-days of contributions declined from 2.2 million in 1976 to 2.1 million in 1977. Unassigned net assets and reserves decreased by $2,257,500. Total benefit payments were $6,137,000 and this was $443,700 (8 percent) greater than benefit payments in 1976. The number of seamen covered for the full benefit program declined from 10,100 in 1976 to 9,900 in 1977. Total annual employer contributions in 1978 are projected at about $6.99 million and investment income is projected at $0.44 million for total income of about $7.43 million. Total expenses are projected at $8.03 million. Matched against the expected total income an operating deficit of $0.60 million is projected for 1978. On the basis of 2.1 million man-days, this is equivalent to an operating deficit of 28¢ per man-day. |