Pension
We have the best pension plan in the business - after 20 years you can retire and collect 100k/year for life.
- Defined Benefit Plan with No Market Fluctuation
- Pension Based on Top 5 Earning Years
- Retire after 20 years - no minimum age
- Pension available as early as 41 y/o
- Voluntary 401k
- Earn 100k after 20 - nearly 3x the MM&P Plan
- Early Retirement Available
Pension Calculator
*Figures based on publicly available pension plan information.
Current OSG wage rates with two and a half percent increase each year. Highest position is position last sailed.
Comparison of Defined Benefit to Defined Contribution
(Note: M.E.B.A. provides both of these benefits as standard in most contracts, including OSG and ATC)
Benefit Structure:
- Defined Benefit Plan: The retirement benefit is based on a formula that considers factors like salary history and years of service. The benefit amount is predetermined and often provides a guaranteed income throughout retirement. The MEBA Defined Benefit plan is based on the average of ones highest five consecutive years of base wages and MMP’s is based on an accrual of the base wage of the year in which you worked.
- Defined Contribution Plan: The retirement benefit is based on the contributions made by the employer and employee, along with the investment performance of those contributions. The eventual benefit is not guaranteed and depends on factors such as investment returns and contribution levels.
Investment Risk:
- Defined Benefit Plan: The employer bears the investment risk and is responsible for ensuring that the promised benefits are paid out, regardless of investment performance.
- Defined Contribution Plan: The investment risk is borne by the employee. The employee has control over the investment choices within the plan, and the eventual benefit is subject to market fluctuations.
A defined benefit plan is often considered better for employees because:
- Guaranteed Benefit: Defined Benefit plans provide a predictable and guaranteed income stream during retirement, which can offer greater financial security.
- Risk Mitigation: Employees do not bear the investment risk, as the employer is responsible for managing the plan's investments and ensuring the benefit payments.
- Long-Term Stability: Defined Benefit plans often provide lifetime benefits or benefits for a specific period, ensuring a reliable income source throughout retirement.
Pension Plan SPD
Definitions
Earned when you complete 125 days of covered employment in a calendar year.
Earned in 1/12th of a calendar year. Full pension credit for one year is 240 days of covered employment. Covered employment includes sailing time, vacation time, and school time.
Once vested, you are entitled to the benefit earned. You cannot lose it. Five vesting credits and you are fully vested for life.
Contracted daily wage based on company, vessel, and rating, including all vacation pay.
A calendar year with less than 63 days of covered employment. Covered employment is sailing days, vacation days, and school days.
- Requires five (5) vesting credits without a break in service.
- Can retire at any age once you have obtained 20 years of pension credits. Calculated on your high five consecutive pension wage earning years.
- Under Article II-B - Earn 2% of your pay per pension credit on the first 20 pension credits. Increased to 2 2/3% for any credit over 20.
i.e. if you earn 30 pension credits, you will retire with 66% of your average high five consecutive pension wage earning years.
- Survivor option available for spouse, with many different formats available.
- Requires three (3) vesting credits after January 1, 2009, without a break in service.
- Employer only contributions.
- Distribution at retirement, or when you leave the industry, or can be taken as an In-Service distribution at age 62.
- You are always 100% vested.
- Employee elected participation.
- Loans are available or can be taken as an In-Service distribution at age 59 ½.
You may retire with a Regular Pension provided you have 20 years of Pension Credit, regardless of your age.
If you have less than 20 years of Pension Credit, then you may receive a Reduced Pension when you reach your Normal Retirement Age.
You may take Early Retirement when you reach age 60 provided you have at least 15 years of Pension Credit.
If you become disabled, then you may retire and receive a Disability Pension provided you have at least 10 years of Pension Credit. You will be considered disabled if in the opinion of the Trustees, medical evidence shows that you are totally and permanently unable, as the result of bodily injury or disease, to engage in any further employment as an Employee. You will be required to submit to physician examinations as directed by the Trustees.
You must have ceased working in Covered Employment on or after June 1, 2001 due to a permanent and total disability which is evidenced by a Social Security Disability Award that established a benefit commencement date within one year of the date you last worked in Covered Employment.
Meet Marshall, member since 1989
Retired Master, Hapag-Lloyd