The requirement literally says 7 years experience. No fresh deckie even has 5 years experience sailing let alone port operations!
That is an advantage.
It’s not because MEBA doesn’t have a Defined Contribution Plan, they have a Defined Benefit Plan instead.
Maybe whatever pension you could get at age 65 after having left MEBA 35 years previously when your became vested at 5 years is better than the money you get in the DC Plan from AMO, I don’t know. That’s a different debate.
It wasn’t.
In case it isn’t clear yet, each union has three plans:
MEBA:
Defined Benefit Pension Plan
Money Purchase Benefit Plan
401k Plan
AMO:
Defined Contribution Pension Plan
Money Purchase Benefit Plan
401k Plan
Again when factoring these all in here are the rankings in terms of the most money you can make and walk away with.
Short term 5 years and out
- AMO
- MEBA
- MMP
Long term here are the rankings
- MEBA
- MMP
- AMO
*MMP only out ranks AMO long term if you can get a permanent position on the highest paying ships like Matson. You need to do this if to offset the comparable losses in money earlier in your career taking low paying MMP jobs, factoring out travel expenses, and inconsistent work (maybe not 6 months a year?)
*MEBA ranks top with its killer pension and ability to make after tax contributions to your 401k you can basically max it out at 67k a year and get a pension. And there deck contracts are more consistent in terms of pay compared to MMP and on the higher end of AMO.
*AMO ranks last because you essentially loose out overtime if you don’t max out your contributions early on and your top wages max out
Long term you there’s a gamble choosing each union.
- MEBA you are gambling the pension stays strong
- MMP you are gambling on the unions ability to keep the highest paying contracts and raise the wages significantly higher than the other unions and your ability to get a permanent on the top contract as fast as possible
- You are betting on the stock market and your ability to max out your 401k on making killer gains early on in your career
Yes we do. Your mistake (despite many attempts to tell you otherwise) is thinking a 401k plan is not a DC plan. It is. And if/when you leave MEBA, all contributions made to that DC/401k plan are taken with you. You falsely implied otherwise and have since been corrected.
A little light reading for you:
The MEBA 401k employer contribution vests as soon as it goes in?
There are no employer contributions to MEBAs 401k plan. All employee contributions as well as any growth/dividends are yours immediately as there is no vesting requirement for that DC plan.
The MPB plan (MPB plan is where you get employer contributions) is also vested immediately so all contributions, growth, and dividends are yours immediately.
No you don’t. You have a 401k, so does AMO. It’s a completely separate plan.
Yes, it is a type of DC Plan, but MEBA also having a 401k (like AMO does) isn’t the same thing as AMO’s DC Plan. I’ve explained this to you multiple times now and the fact that you’re unable to understand the concept doesn’t make me wrong.
I didn’t imply anything, I correctly stated that you’re wrong.
It’s funny that you think this.
Almost as funny as your above post where you say we don’t have a DC plan then in the next line straight up write that is a DC plan. Idk what else to tell you man… Just read and comprehend.
That’s good advice. Read and comprehend:
Words matter, and a 401k is by definition a defined contribution plan.
I looked at some of the documents on mebaplans.org and it says that any employer contributions are defined in the individual contracts.
If, as someone posted above, there ARE no employer contributions then I would not count this particular defined contribution plan as a plus in the MEBA column. You could accomplish the same with an IRA.
I thought that some of the new contracts had 401k matching instead of pension contributions but I could be wrong.
If you max your 401k and an IRA that’s doing something you can’t do with just an IRA.
Yes, and AMO has a plan called the Defined Contribution Pension Plan that is a separate and unique entity from the 401k Plan.
I thought the argument was over whether MEBA had a defined contribution plan. I’m having trouble keeping track. Have at it!
Factually true, but how many people are going to max their 401(k), have enough money to max an IRA, and still be under the phaseout AGI for tax deduct ability ?
That doesn’t matter, you can’t write off a traditional IRA anyway since you have access to a retirement plan through the union. Besides, a Roth IRA is better anyway.
They do, and even if they didn’t have it in their MMC, they could still be master of a vessel less than 100 GRT, see 46 CFR 15.901(a) and CG-MMC Policy Letter 03-21.
Facts…but to some, the importance of thinking they are right outweighs facts.
This is also facts and I agree, the lack of employer contributions is not a plus for MEBA. But remember, the reason for this is due to the defined benefit plan offered by MEBA that is not offered by AMO.
With MEBA, you can also contribute via ‘Designated Roth Contributions’ in addition to an IRA up to the total IRS limit of $69,000. (I an not aware if AMO also offers this). This can be seen on the below enrollment form:
As you previously stated, yes, the MEBA offers a 401k which is a DC plan. The AMO also offers a 401k plan. In addition to that, AMO also offers another DC plan which includes employer contributions. To counter this, the MEBA offers a defined benefit plan which is a separate topic not yet covered here.
Similar concept except that having a standalone IRA has a contribution limit of $7,000 per year vs. the total limit up to $69k with the MEBA. (once again, I cannot comment on whether the AMO offers a similar benefit).
A defined benefit plan is what is commonly known as a pension plan. Defined benefits are projected and known by the employer and employee based on length of service, salary etc. The employee does not contribute the employer does. The pension is protected by the PBGC but that protection has been watered down over the years by lobbyists/congress.
Defined contribution plan depends on employee contribution and an optional employer match aka 401k. The benefit depends on how the investments perform and cannot be accurately projected due to the many variables in how markets perform.
Now that all of that is settled. Allow me to loft another match into the tinder box…
How do the AMO and MEBA plan on forging this all together when they complete their reconciliation and become the Voltron of officers unions in a few years? 
Is it time to split this topic?