MARINE ENGINEERS' BENEFICIAL ASSOCIATION (AFL-CIO)
         "On Watch in Peace and War Since 1875"

MEBA TELEX TIMES       NOVEMBER 16, 2007

The Official Union Newsletter

NUMBER 46

In this issue...
Marty Phillips honored...TWIC enrollments...Special meetings to elect Tallying Committee...Lump sum factors released, et cetera...E Pluribus Unum! In an ad hoc, magnum opus edition for Latin lovers, the de facto maritime emeritus presents a bona fide, pro-bono memorandum. Ixnay on persona-non-grata industry weeklies where the status quo is literary rigor mortis ad nauseam. Carpe diem and come to terra firma with the Magna Carta of newsletters that you can enjoy verbatim. Veni Vidi Vici -- the Telex Times - it came, it saw, it conquered!

M.E.B.A. CAPT. MARTY PHILLIPS HONORED AT LNG TERMINAL
M.E.B.A. Captain Clyde Marty Phillips received a special posthumous honor at Cheniere Energys Sabine Pass LNG terminal in Cameron, Louisiana late last month.

The highly respected member joined the Union in 1977 and sailed on a slew of U.S.-flagged LNG ships during a distinguished career. He passed away in August of 2005. Marty had sailed to almost every LNG terminal in the world and his vast knowledge about LNG carriage made him a valuable commodity as a consultant. His terrific work with Cheniere in the design and construction of their LNG marine terminal was not forgotten and the company had a ceremony in late October to name the jetty at the Sabine Terminal after the popular M.E.B.A. deck officer. Marty is survived by his wife Janet, children Tino and Lance as well as his parents. He was only 51 years old at the time of his passing.

TWIC ENROLLMENT CONTINUES UNABATED
Enrollment for the Transportation Worker Identification Credential is continuing across the country as new centers open up. This week, TWIC enrollment began in Houston, TX and Providence, RI on Wednesday, and Chicago/Calumet, IL, Port Arthur, TX, and Savannah, GA on Thursday. Visit the TSAs website at http://www.tsa.gov/assets/pdf/twicquarterlydeploymentschedule.pdf to get a look at the full schedule.

Online pre-enrollment will help speed up the process for members needing a TWIC. You can get related information by perusing TSAs site by clicking www.tsa.gov/what_we_do/layers/twic/index.shtm.  Members can register online by creating a username and password which will allow you to pre-enroll. Once your information is entered online you need to schedule an appointment at one of the enrollment centers. This can be accomplished by calling the TWIC helpline at 866-347-8942. It should be noted that the enrollment centers are still being established and there may not be one in your area at this time. Once your appointment has been scheduled, you will need to bring identification to the enrollment center and a form of payment. Your valid U.S. passport or MMD can be used for a single qualifying piece of identification.

UPCOMING SPECIAL MEETINGS TO ELECT TALLY COMMITTEE
Yes, the seemingly interminable M.E.B.A. District No. 1-PCD election period is in its final two weeks. On Monday, November 26, seven Union halls will host special meetings to elect a rank and file Tallying Committee who will help oversee the tabulation of ballots. In most cases, those halls will hold their special meeting following job call but make sure you contact that particular hall in advance to confirm because times could vary.

The branches electing one member each to the Tallying Committee are New York, Baltimore, Seattle, Los Angeles, and Houston. The branches electing an alternate member are New Orleans and San Francisco. Members elected must be in good standing; i.e., dues paid through the fourth quarter of 2007. No officer or candidate for office or job shall be eligible for election to this Committee.

On December 3, the elected Committee will go to Washington D.C. and join an Impartial Administrator to tabulate ballots received. Please urge all members to attend and participate in this special meeting.

TWO WEEKS LEFT TO CAST YOUR BALLOT
Members in good standing who have not yet received a ballot and want to vote in the District election still have time. Ballots for the District election were mailed to members homes on Saturday, September 1. If you are in good standing and you made sure to update Headquarters with your latest mailing address, you should have received a ballot.

If you did not receive a ballot or if yours was lost or destroyed you need to contact the American Arbitration Association (AAA) and request a ballot in writing from: Kenneth Egger, American Arbitration Association, 230 South Broad Street, Floor 12, Philadelphia, PA 19102-4199. Phone No.: (800) 273-0726; Fax No.: (215) 985-0977, E-mail: eggerk@adr.org.  If the original ballot and duplicate ballot are both cast, neither will count. Address clarifications should also be forwarded to Headquarters and to the Plans Office.

Members who fill out their ballots have until November 30th to return them to a depository in Washington D.C. They will be collected by the Impartial Administrator and an elected rank and file tallying committee on December 3, 2007 and tabulated.

IRS RELEASES MORTALITY TABLE ON LUMP SUM CALCULATIONS
Beginning with distributions after December 31, 2007, the Pension Protection Act of 2006 (PPA) changed the way in which the Fund will calculate the lump sum value of your pension benefit. The Internal Revenue Service has finally issued the applicable mortality table and the interest rates for August through October (including the segmented rates) which are required for lump sum distributions in 2008. However, please note that technical guidance has yet to be released. The calculations below are based on the Plan Actuarys best estimate of how the lump sum and benefit limitation under Internal Revenue Code (IRC) §415 work.

The applicable interest rate will be determined during the first five years by blending segmented corporate bond rates with the 30-year Treasury rate. The segmented corporate bond rates will be phased in over a 5-year period in increments of 20% each year. Similarly, the 30-year Treasury rate will be phased out over the same five-year period in decrements of 20% each year. In 2012, the entire applicable interest rate will be determined using only the segmented corporate bond rates. These rates will be published monthly by the Secretary of the Treasury.

In 2008 for Participants under age 65, the PPA method of calculating a lump sum will produce a smaller lump sum than using the regulations in effect for 2007. As mentioned above, the new law requires that the PPA interest rates be phased in over a 5-year period. This phase in results in a dampening of PPAs impact in the early years, with the full impact not being realized until 2012. As a result, the lump sum value of your benefit is provided with some level of protection from the new law, but this protection will decline over time. As mentioned, a new mortality table was also issued.

Based on this information, the Plan Actuary has calculated lump sum factors using the interest rate corresponding to the months of August, September, and October and the applicable mortality table. The lump sum factors determined using the month of October currently result in the most favorable lump sum for Plan Participants planning retirement during 2008. Unless the interest rate for November or December produces more favorable lump sum factors, the Pension Plans 2008 lump sum factors will be based on those corresponding to October.

In the table, each hypothetical participant is assumed to retire with a $50,000 pension annuity, payable immediately at the distribution date. The ages provided in Column A are the assumed ages at the distribution date. For example, a participant with a $50,000 annuity who took a distribution in 2007 at age 61 would have received a lump sum distribution of $668,322. Using the factors corresponding to the month of October (the most favorable so far) a participant with a $50,000 annuity who receives a distribution when they reach age 61 in 2008 will collect a lump sum of $656,923.

The table illustrates that for Participants under age 65, the actuaries are projecting that the PPA method of calculating your lump sum will produce a slightly smaller lump sum than using the regulations in effect for 2007. However, in making your retirement decision, you should also consider other factors, including increased accruals, changes in final pay, and the impact of the changes in the benefit limitation under IRC 415, which increased from 2007 to 2008. The old lump sum limitations are included and the Plan Actuarys best estimate of the new lump sum limitations are in the table in Columns I & J respectively.

Also included, in the table in Columns E & F, are the calculation of the participants lump sum for 2008 if the changes required by PPA were not to take effect in 2008. A bill was introduced in the United States House of Representatives to delay the effective date of the lump sum provisions of PPA until 2009.

Because of the difficulty of reproducing this chart in our newsletter format, the columns have been split up. This information will be repeated in a more amenable format in the next edition of the Plans newsletter that mails out to all active and retired members. The Plans Office has also posted the notice and chart on its website www.mebaplans.org.  Click on What's New and then on Notices where after you will soon find the information you seek.

The following is the key:
- Column (A): Participant Age at Distribution Date
- Column (B): Annual Annuity at Distribution Date
- Column (C): 2007 Lump Sum Factors (Monthly Annuity)
- Column (D): Lump Sum for $50K Annuity in 2007 2007 Regulations (Pre-PPA)
- Column (E): 2008 Lump Sum Factors Ignoring PPA Lump Sum Provisions
- Column (F): Lump Sum for $50K Annuity in 2008 Ignoring PPA Lump Sum Provisions
- Column (G): Actuary's Best Estimate of 2008 Lump Sum Factor Updated Mortality and Blended October Interest Rates
- Column (H): Lump Sum for $50K Annuity in 2008 Using Column (G) Factor
- Column (I): Benefit Limitation under IRC §415 for Lump Sum Distribution during 2007 (Old Law)
- Column (J): Actuary's Best Estimate of Benefit Limitation under IRC §415 for Lump Sum Distribution during 2008

(A)         (B            (C)                 (D)                 (E)             (F)                 (G)
50     $50,000     195.842     $816,009     193.739     $807,244     190.059
51     $50,000     193.074     $804,477     191.037     $795,989     187.609
52     $50,000     190.210     $792,543     188.240     $784,332     185.049
53     $50,000     187.252     $780,215     185.348     $772,284     182.383
54     $50,000     184.199     $767,494     182.362     $759,842     179.613
55     $50,000     181.047     $754,363     179.278     $746,992     176.736
56     $50,000     177.802     $740,842     176.100     $733,751     173.772
57     $50,000     174.469     $726,956     172.835     $720,144     170.731
58     $50,000     171.058     $712,743     169.490     $706,210     167.601
59     $50,000     167.575     $698,230     166.074     $691,973     164.378
60     $50,000     164.020     $683,415     162.584     $677,432     161.063
61     $50,000     160.397     $668,322     159.026     $662,609     157.662
62     $50,000     156.721     $653,004     155.414     $647,558     154.194
63     $50,000     152.995     $637,479     151.751     $632,295     150.659
64     $50,000     149.237     $621,821     148.055     $616,895     147.080
65     $50,000     145.449     $606,039     144.328     $601,366     143.436

Age         (H)                     (I)                  (J)
50     $791,911     $1,146,356     $1,178,200
51     $781,703     $1,207,101     $1,240,632
52     $771,039     $1,271,333     $1,306,647
53     $759,930     $1,339,319     $1,376,522
54     $748,386     $1,411,340     $1,450,544
55     $736,402     $1,487,674     $1,528,999
56     $724,048     $1,568,696     $1,612,271
57     $711,381     $1,654,840     $1,700,808
58     $698,336     $1,746,626     $1,795,144
59     $684,909     $1,844,610     $1,895,850
60     $671,094     $1,949,348     $2,003,496
61     $656,923     $2,061,535     $2,118,800
62     $642,474     $2,182,061     $2,242,673
63     $627,747     $2,134,103     $2,193,384
64     $612,835     $2,085,537     $2,143,469
65     $597,650     $2,036,388     $2,092,955

MARAD DIALOGUE ON PORT INFRASTRUCTURE
High-level representatives of banks and equity firms met with port directors and terminal operators in a Port and Terminal Infrastructure Investment Roundtable on November 9th, an event facilitated by the U.S. Department of Transportation and the Port Authority of New York and New Jersey. More than 60 key stakeholders met in New York City to address resources needed to meet the growing infrastructure requirements resulting from the projected dramatic growth in trade.

Deputy Secretary of Transportation Thomas J. Barrett was the keynote speaker. Discussion was wide-ranging, addressing such possibilities as mandatory user fees, coordinated responses to issues and problems, and adaptations of tolls and facility charges.

Deputy Maritime Administrator Julie A. Nelson chaired the event. Nelson is leading the Maritime Administrations initiative to begin a national dialogue on port infrastructure, and will be a featured speaker at next months North American Port and Intermodal Finance and Investment Summit in Coral Gables, FL.

COSCO BUSAN PROBE, FALLOUT CONTINUES
The U.S. Coast Guard announced that the agency has begun a comprehensive review of its response to last weeks COSCO BUSAN oil spill in San Francisco Bay after the ship allided with the San Francisco Bay Bridge. The Coast Guard took heat after massively underreporting the extent of the spill in the early hours. Initially they announced that only 140 gallons of bunker fuel had spilled. It was later amended to 58,000 gallons. State officials claimed that the poor information hindered the size of the response effort in the critical first hours. The bridge was not damaged but the huge gash opened up in the ship punctured two fuel tanks leading to the spillage. A preliminary Coast Guard investigation found that human error, not mechanical failure, caused the ship to hit a bridge last Wednesday. Coast Guard Commandant Admiral Thad Allen defended the Coast Guard's response to the incident, citing poor visibility due to fog at the time of the crash. He said preliminary information suggests it took time to figure out the extent of the spill because equipment used to measure fuel was damaged in the crash.

The Coast Guard announced that it was establishing an Incident Specific Preparedness Review (ISPR) of the incident. This review will look at the contingency plan in place and will evaluate the effectiveness of the Coast Guard's response and communications efforts with key federal, state, local and industry partners. Admiral Allen noted, While we would not normally initiate an ISPR review during the course of an ongoing cleanup operation, I have determined that due to the severity of this incident and the potential benefits in identifying areas to improve response coordination and communication in the future, it is imperative that we get this review underway as quickly as possible.

The National Transportation Safety Board has launched its own investigation. Additional reports surfaced this week that the Coast Guard's Vessel Traffic Service was in contact with the BUSAN just before the accident and realized that the ship was straying from its course and moving parallel to the bridge. Allegedly the vessel pilot told the Coast Guard operators that he was attempting to maneuver through the bridge. The operators waited while the pilot performed the critical maneuver with zero success. Instead, the pilot introduced the hull of the 901-foot tanker to the base of the Bay Bridge tower in a sideswipe that produced a sickening abrasive metal screech. Coast Guard officials say there is no evidence that their operators acted improperly.

The State of California ordered an emergency cleanup of the bay and its oil-coated shoreline, and nearly 800 people are working to rescue birds, fish and other wildlife from potentially deadly pollution. The cleanup is expected to continue for weeks or months.

USCG OKAYS COMPLIANCE POLICY
Ship owners and operators who voluntarily implement environmental compliance programs could be spared criminal prosecution, under a new Coast Guard policy. The Coast Guard said that This policy is designed to enhance the protection of human health and the marine environment by encouraging regulated entities to voluntarily discover, disclose, correct, and prevent violations of Federal environmental requirements. The policy, which has been in development for nearly a decade, follows similar lines at the Justice Department and the Environmental Protection Agency intended to reward companies proactive about compliance. The Coast Guard will now refrain from recommending to the DOJ that criminal charges be brought against any owner or operator who adopts a qualifying compliance management system to prevent, detect, and correct violations, and then promptly and voluntarily reports a violation discovered through such system.

NEXT REGULAR MONTHLY MEETINGS
Monday, December 3 - Boston, Seattle;
Tuesday, December 4 - Baltimore, Houston, Jacksonville; San Francisco
Wednesday, December 5 - Calhoon School, Charleston, New Orleans, Portland;
Thursday, December 6 - L.A., New York, Norfolk, Tampa;
Friday, December 7 - Honolulu.

--------FINISHED WITH ENGINES---------