The mailing of annual statements from the Seafarers Money Purchase Pension Plan (SMPPP) to Plan participants was completed last month, according to SMPPP Administrator Bill Dennis.Based on year-end reports received from Morgan Stanley Dean Witter, SMPPP investment manager, the Plan continues to perform well despite ongoing market volatility. Interest earned on the accounts during 2004 was 6.5 percent; the total amount in all accounts was more than $27.4 million.
The SMPPP originated in 1996, as the SIU successfully negotiated the new benefit into the standard freightship and tanker agreements. The SMPPP subsequently has been included in other SIU contracts.
Approved by the Internal Revenue Service, the SMPPP is an individual interest-earning investment account funded by a daily contribution made by an SIU-contracted company on behalf of a Seafarer who is working for that employer. SIU members may make voluntary contributions to their respective accounts through a Vacation Plan deduction.
The SMPPP is completely separate from a member’s defined benefit pension. Under the SMPPP, a Seafarer is immediately vested from the first day money is received on his or her behalf. Unlike the Seafarers Pension Plan, there is no minimum amount of seatime needed to receive the money from an SMPPP account.
Seafarers can collect the funds from their SMPPP account when they reach retirement age, become totally and permanently disabled, or leave the industry. Widows/widowers may collect the funds in the event of their spouse’s death.
The annual statements include the following information:
- Member’s name, address and Social Security number (which is also the participant’s account number);
- Statement date;
- The opening balance for 2004 (which was the year-end 2003 closing balance);
- Interest earned and administrative expenses charged;
- Any payouts made to the member in 2004; and
- The closing balance for 2004 (which will appear as the opening balance on next year’s annual statement).
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