FACT OR FICTION or IS IT ELECTION TIME

During the election period in 2004 MEBA Union Officials were characterizing the Union operated Medical Plan as being in good condition.

From an A Team2 flyer:

“Every good MEBA Marine Officer knows numbers matter.
When running a maritime union these are the numbers that mean something.
New Ships 2002-2004 plus 27.
More ships, more work, more jobs on the open board that in years.
Under the MEBATEAM II leadership we’ve successfully secured more ships and more jobs than any administration in the last 20 years.
On top of that, these gains also mean that we can ensure retiree medical benefits well into the future.”

From another Team2 flyer:

“Benefit Plans & Funds
The MEBA Medical Plan is in sound financial shape. It is the healthiest medical plan in the maritime industry. It has more that $40 Million in reserves to pay for medical claims. Contribution into the Medical Plan for 2003 were in excess of $34 Million. Bottom line is that the Medical Plan is bringing in more money than it pays out, and this will only continue because we have negotiated excellent contribution rates into every contract over the past three years”

From yet another Team2 Flyer:

“Keeping 70 years of MEBA experience working for You - Fighting for jobs. Keeping your health plan sound ………..
We’ve put that experience to work for you and your family over the last three years with results that mean concrete gains for you and your family:

Medical Benefits ensured well into the future”

From the July 23, 2004 MEBATeam2I letter signed by Davis:

“You said keep our benefits stabilized. At a time when many other families are concerned over the status of their health care plans and loss of benefits, we worked hard at ensuring the financial health of our MEBA Medical Plan, not only making it more secure but even improving our medical benefits.”

And:

“The MEBA Medical Plan is the healthiest plan in the maritime industry. It has more than $40 Million dollars in reserves to pay for medical claims. Contributions into the medical plan for 2003 were in excess of 34 million dollars. The benefit payments and administrative expenses were $32.7 million dollars. Thus, the medical plan brought in more money than it paid out.”

The Union’s Legal Representative William Doyle posted this last statement on the Official MEBA Members Internet Bulletin Board, on August 8 2004. In his position, he is privy to information ordinary Members do not get to see. Doyle makes this obvious by continuing:

“The retiree medical liabilities are reported by MEBA on its financial statements as required by SOP 92-6. These figures incorporate future benefit payments for current retirees and current actives (when they retire). The timeframe for the payments extend from the current day and look forward for up to 70 years.”