Volume 40, Number 2 February 2010

Copyright © 2010 American Maritime Officers ■ 2 West Dixie Highway ■ Dania Beach, FL 33004 ■ (800) 362-0513 ■ editorial@amo-union.org

Leadership at sea:AMO officersdeter pirate attackPage 3: The report of Capt.Michael Tolley, master of theM/V Harriette, illustrates theprofessionalism and heroism ofthe officers and crew in deter-ring a recent assault on the shipby armed pirates off the coastof Kenya.

Great Lakes News AMO secures newcontracts withsignificant gains

Page 10: The AMO Great Lakesarea informational meetings willbe held this month.

Page 11: AMO has securednew three-year agreements cov-ering two Maersk Line Limitedtankers and six Seabulktankers. Both agreementsinclude significant increases forthe AMO officers workingaboard the ships.

AMO EssentialsAMO Pension Plan updates:Pages 6, 7, 12

STAR Center courseschedule: Pages 8-9

AMO directory: Page 10

AMO membership meetingschedule: Page 10

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New AMOjobs aboardMohegan

under MSCcharter

The containership M/V Mohegan

has commenced a resupply service toDiego Garcia this month after being re-flagged into U.S. registry and delivered toMilitary Sealift Command Wednesday,Jan. 6, in Singapore.

Sealift Inc. is operating the Mohegan

under MSC charter and the ship is mannedin all licensed positions by AmericanMaritime Officers.

“AMO welcomes these new jobswith Sealift and we look forward workingwith them in this important mission sup-plying the fleet in Diego Garcia,” saidAMO National President Tom Bethel.

Sealift LLC purchased the 703-TEURio Bogota from Danish owners last year.The ship, built in 1994, was re-flagged andrenamed for service under the MSC charter.

Sealift Inc. is pleased to have beenawarded the charter for the resupply mis-sion to Diego Garcia and is proud to bepart of Military Sealift Command’s mis-sion in this important area of the world, thecompany stated.

The charter under which theMohegan is operating can extend up to fiveyears if all options are exercised, with afirm one-year period, three one-yearoptions and one 11-month option.

Including the Mohegan, Sealift man-ages 12 ships manned in all licensed posi-tions by American Maritime Officers.

AMO jobs secure as Crowley Liner Services assumesmanagement of nine ships

American Roll-On/Roll-OffCarrier (ARC) is terminating its vesselmanagement agreement with InteroceanAmerican Shipping Corp.

Crowley Liner Services was tohave assumed management of nineU.S.-flagged ARC car carriers, includ-ing the soon-to-be re-flagged M/V

Endurance, beginning Jan. 25 and con-tinuing through March of this year.

American Maritime Officersmanned all U.S.-flagged ARC car carri-ers while they were under the manage-ment of IAS. AMO will continue to manthese car carriers in all licensed posi-

tions under the management of CrowleyLiner Services.

Eight of the ARC car carriers oper-ate in the 60-ship Maritime SecurityProgram fleet. They are the Freedom,Integrity, Honor, Courage,Independence II, Liberty, Patriot andResolve. ARC is proceeding with plansto purchase and re-flag a ninth car carri-er into U.S. registry this month. CrowleyLiner Services will operate the M/V

Endurance for ARC and the ship willreplace the Liberty in the MSP fleet. TheLiberty will continue to operate underAMO contract in the U.S.-flag fleet.

Ocean Atlas

delivers forNew York Citysubway projectPage 12: The M/V Ocean Atlas inJanuary completed the U.S.-flagdelivery of subway car bodies for theNew York City Transit Authority. Theship is manned in all licensed posi-tions by AMO in the MaritimeSecurity Program fleet

New jobs for AMO as ARC bringsM/V Endurance into U.S.-flag fleetCommercial car carrier among largest, most militarily useful

American Roll-On/Roll-Off Carrier will proceed with plansannounced last year to purchase and re-flag a ninth car carrier intoU.S. registry. The ship is scheduled to enter service in New Yorkon Feb. 15 and will be named the M/V Endurance.

Members of American Maritime Officers joined theship (former M/V Taronga) in January in California. TheEndurance will be operated by Crowley Liner Services forAmerican Roll-On/Roll-Off Carrier and manned in alllicensed positions by AMO.

“AMO is proud to be part of ARC’s plans to bring one ofthe largest and most versatile commercial RO/ROs into the U.S.fleet,” said AMO National President Tom Bethel. “We welcomethe new jobs and the opportunity to set another benchmark inU.S.-flag shipping.”

The Endurance will replace the ARC car carrier Liberty inthe Maritime Security Program. The Liberty will remain underU.S.-flag and is currently operating under a Military SealiftCommand charter.

The M/V Endurance was delivered by Mitsubishi HeavyIndustries in December 1996. The ship is a unique RO/RO and isamong the largest such vessels in the world at 860 feet in length.The Endurance has nine decks that can be configured to carryover 260,000 square feet of high and heavy cargo – such as CH-

47s, MRAPs, MATVs, tracked vehicles, construction equipmentand generators – 130,000 square feet of additional high-side vehi-cle (SUV) space, and approximately 200 containers. The ship’squarter ramp weight capacity of 320 tons exceeds that of any ves-sel in the U.S.-flag commercial fleet.

American Roll-On/Roll-Off Carrier is proceeding withplans to purchase a ninth car carrier (former M/V Taronga)and re-flag it into U.S. registry. AMO will man the M/VEndurance in all licensed positions.

2 • American Maritime Officer February 2010

American Maritime Officer (USPS 316-920)Official Publication of American Maritime Officers

2 West Dixie HighwayDania Beach, FL 33004

(954) 921-2221Periodical Postage Paid at

Dania Beach, FL, and Additional Mailing OfficesPublished Monthly

American Maritime Officers National Executive Board

Thomas Bethel, National PresidentJosé Leonard, National Secretary-TreasurerRobert Kiefer, National Executive Vice PresidentJoseph Gremelsbacker, National Vice President, Deep SeaDonald Cree, National Vice President, Great LakesBrian Krus, National Assistant Vice President, Great LakesMichael Murphy, National Vice President At LargeDaniel Shea, National Executive Board Member At LargeDavid Weathers, National Executive Board Member At LargeJohn Hafner, National Executive Board Member At LargeDonald Nilsson, National Executive Board Member, Deep SeaCharles Murdock, National Executive Board Member, Inland Waters

Representative: Stan Barnes

Editor: Matt BurkeAssistant Editor: Amber LupinContributing Editor: Paul Doell

POSTMASTER—Send Address Changes To:American Maritime OfficersATTN: Member Services

P.O. Box 66Dania Beach, FL 33004

Relief for Haiti: AMO and the U.S. merchant marineBy Tom Bethel

National President

The callwent out, and — asalways — the menand women of theAmerican mer-chant marineresponded. Themission this timewas humanitarian— relief services inHaiti, where a mas-sive earthquakeJanuary 12 and apowerful aftershock caused untold destruc-tion and despair.

The U.S. government’s immediate andcomprehensive response to this tragedyincluded the dispatch of the privately operat-ed USNS 1st Lieutenant Jack Lummus, USNS

PFC Dewayne T. Williams and USNS Henson

to Haiti by the Navy’s Military SealiftCommand, the deployment of several addi-tional MSC vessels crewed by civil servicemariners, and the activation of three ReadyReserve Force Ships by the MaritimeAdministration in the Department ofTransportation.

As part of the fleet mobilization, twogovernment-owned fast ferries were calledupon to assist in an effort hindered by the lossof Haiti’s major port in the quake and thelogistical complications of getting relief per-sonnel, supplies and equipment through rub-ble and ruin to where they were needed themost.

Our union’s response on one level wasto commit to a donation of $25,000 to theHaitian relief project through the AmericanFederation of Labor-Congress of IndustrialOrganizations Solidarity Center EducationFund. The money will come not from theAMO treasury, but from the voluntary AMOMembership Assistance Program, or MAP.

The MAP fund — established withInternal Revenue Service approval afterHurricanes Katrina and Rita devastated NewOrleans and the Gulf Coast — is supportedby individual contributions from AMO offi-cials, representatives and employees andseagoing AMO members. Employees ofAMO Plans in Dania Beach — many ofwhom are of Haitian descent, and many ofwhom have family in the Caribbean country— contribute routinely through authorizedpayroll deduction.

AMO’s response on a more visiblelevel was to man many of the U.S.-flaggedvessels tapped for Haitian relief service.

The National Executive Board ofAmerican Maritime Officers and I are grate-ful to all of the private sector and governmentmariners participating in this widespreadeffort to bring help and hope to people whohave known too much heartbreak over too

long a time. These men and women bringcredit to all U.S. citizen seafarers and to theU.S. maritime industry as a critical diplomat-ic asset, and they are truly representative ofAmerican character.

But we are especially grateful to —and proud of — the AMO members involvedto so significant an extent in the operation.

AMO engine and deck officers wereaboard the USNS 1st Lt. Jack Lummus andUSNS PFC Dewayne T. Williams, both ofwhich serve in Maritime Prepositioning ShipSquadrons that carry afloat prepositionedcargo for U.S. military forces. AmericanOverseas Marine Inc., a General Dynamicsunit referred to commonly as AMSEA, oper-ates the Lummus, Williams and 10 other ves-sels under MSC charters.

At Blount Island Command inJacksonville, the USNS 1st Lt. Jack Lummus

took on cargo from the U.S. Agency forInternational Development in the StateDepartment, the Federal EmergencyManagement Agency in the Department ofHomeland Security and other federal agen-cies, as well as equipment and supplies for theU.S. Marine Corps. The shipment includedrelief supplies, gear for the U.S. MarineCorps’ 22nd Marine Expeditionary Unit —dump trucks, bulldozers and other heavyequipment — and barges for cargo lighteringoff the Haitian coast.

“The 637-foot Lummus, with 165,000square feet of cargo carrying capacity, wasideal for the no-notice mission,” said MSC-MPS project officer Mike Neuhardt in anMSC press release. “Lummus was already inport at Blount Island, offloading its cargo forscheduled maintenance.”

Like all AMO members, the officersaboard the USNS 1st Lt. Jack Lummus areaccustomed to emergency conditions and“no-notice” assignments, and they handledthem in this case with the professionalism,skill, dedication and urgency they are knownfor everywhere.

AMO engine and deck officers are alsoaboard the USNS Henson, an oceanographicsurvey vessel tracking the earthquake’s dam-age to shipping channels in Haiti. The Navytechs and support personnel aboard the USNS

Henson are doing their important work confi-dently, knowing that the vessel itself is in theworld’s most capable and trusted hands.

Members of American MaritimeOfficers are aboard the RRF ships called upfor Haitian relief service — the auxiliarycrane ships Gopher State and Cornhusker

State (both operated for MARAD byInterocean American Shipping) and the bargecarrier Cape May (operated for MARAD byOcean Duchess).

“Sending these ships will help thoseon the front line of this effort to save as manylives in Haiti as possible,” TransportationSecretary Ray LaHood said of the ReadyReserve Force break-out. “These ships will

add crucial capabilities by supporting opera-tions to move large volumes of people andcargo.”

“These ships and skilled crews are ide-ally suited to assist in Haiti by providingunique capabilities,” Acting MaritimeAdministrator David Matsuda added.

I’ll second these comments — gladly.When the Haitian relief operation is

over, the AMO members on the scene will

return home with compelling, often grim buthumbling personal stories to tell. But thestory we will all tell together in AmericanMaritime Officers is a familiar one, told bygenerations since the American Revolution.Its theme is unchanging— the everlastingneed for a strong and diverse U.S.-flaggedand manned merchant fleet that can serveU.S. economic, military and humanitarianinterests worldwide.

A floating causeway delivers relief aid from the Military Sealift Command maritimeprepositioning ship USNS 1st Lt. Jack Lummus while local Haitians prepare thedock for landing in Port-au-Prince. The Lummus is operated for MSC by AMSEAand manned in all licensed positions by AMO.

Photo: Military Sealift Command

American Maritime Officer • 3February 2010

Membership Report from Washington, D.C.

To the editor:

Please publish this

on AMO Currentsor in the AMO

newspaper. Thank

you.

I participatedin theA M O – M a e r s kLine LTD tankercontract negotia-tions at the AMOheadquarters inWashington DC, 05-08 Jan., and I wanted tolet everyone know about the experience.

I wish to thank National President TomBethel, National Executive Vice PresidentRobert Kiefer, National Vice President atLarge Mike Murphy and Legislative DirectorPaul Doell for their time, knowledge sharing

and hospitality. I had an opportunity to speakwith each of them on varying subjects withregard to the current issues facing our union.I walked away feeling educated and pleasedwith the direction our current union leader-ship is undertaking for the membership.

Bob Kiefer was instrumental in attain-ing a fair and balanced contract for the MLLtanker officers, a contract that provides paritywith other AMO tanker contracts over thenext three years. Bob was persistent andknowledgeable on all the pertinent negotiablepoints, which resulted in a considerableincrease in our pay and benefit contributionpackage. It is being well received by the offi-cers within the MLL tanker fleet.

Mike Murphy made himself availableto me despite his busy schedule. Not only isMike involved with issues inside the DC belt-way for our membership, but he is also

Chairman of the Maritime Safety Committeeof the International Transport Workers’Federation (MSC/ITF), which works closelywith IMO. At the time of my visit, Mike waspreparing for an IMO meeting in London tobe held on 11-15 Jan to discuss global STCWstandards. I have always been impressed withMike’s integrity, congeniality and gracious-ness as a person but I am struck by his keenability to make detailed and convoluted issuesclear and understandable. We are fortunate tohave Mike Murphy as National VicePresident at Large working for our causes.

The national and international initia-tives the AMO union is currently facing aresomewhat daunting, certainly unprecedentedbut at the same time exciting. There is a seachange of events taking place at a very highlevel that will affect each of us as mariners inthe near future. Considering the

IMO/ITF/MSC docket, MSP funding, TitleXI Loan Guarantees, Jones Act legislation,Cargo Preference Laws, EPA changes andPL-480 cargoes to name a few. That said, Ihave a deeper appreciation for the value of theVoluntary Political Action Fund after dis-cussing first hand the complicated issues con-fronting our union that have far reaching con-sequences for the entire membership.

I appreciate the opportunity to repre-sent the MLL tanker officers in the negotia-tions, and I appreciate the hard work, serviceand dedication of the administration to ourunion during this time of change. Making thedifficult, sometimes unpopular but necessarydecisions to keep our union moving forward,solvent and competitive on a global level iswhat defines leadership.

—Captain Michael Ross

M/V Harriette: deterring an attack by armed piratesRemarkable response of officers, crew saves ship, ensures safety of all onboard

The M/V Harriette, a U.S.-flagged ship operated by Sealift Inc.and manned in all licensed positionsby American Maritime Officers, evad-ed an attack by armed pirates about360 nautical miles from Mombasa,Kenya, in November. No officers orcrew members on the Harriette wereharmed in the attack.

“We all feel very fortunate tohave prevailed over the pirates in thisattack,” said Capt. Michael Tolley,master of the Harriette, who recentlydescribed the specific actions thatallowed the ship to evade the pirates.

Around 11 a.m. local time, twoskiffs approached the vessel. Capt.Tolley ordered successive sharp turnsand hit the first skiff. Undeterred, theskiff came alongside the vessel andtried to put a ladder with wide hooksup on the ship’s rail. Capt. Tolleyturned the vessel into the seas and cre-ated a “wedge of water” between theskiff and the ship.

“They were very vulnerable atthis time,” Capt. Tolley said.

Meanwhile, Chief Mate StephenGavini mustered the crew at piracystations and made sure the fire hoseswere charged. Second Mate JohnNorton was on the phone with theInternational Maritime Bureau andsent a distress message.

In the engine room, ChiefEngineer John Dunn increased the

main engine to max revolutions – “themost we have ever seen!” Capt. Tolleysaid.

Looking down into the first skiff,Capt. Tolley could see several containersof fuel, along with the heavy weaponry thepirates carried – Kalashnikovs and rocket-propelled grenade launchers. The pirates

did not use the grenade launchers, butfired a total of 30 to 40 rounds from anAK-47, damaging the port lifeboat and“some of the ship’s structure.” Most ofthe shots sailed over the vessel.

With increased speed, the skiffswere caught up in the Harriette’s wakeand fell back. The total attack lasted less

than half an hour.“We at Sealift are extremely

proud of Captain Mike Tolley and thecrew of the Harriette,” said JohnBelle, company security officer forSealift Inc. “Their efforts saved theship and protected the safety of thecrew.”

M/V HarrietteSecond MateJohn Norton,Chief EngineerJohn Dunn andCapt. MichaelTolley, master ofthe Harriette, (leftto right) wereonboard duringthe attack bypirates inNovember off thecoast ofMombasa, Kenya,and acted to deterthe pirates, savethe ship andensure the safetyof all onboard.The Harriette isoperated bySealift Inc. andmanned in alllicensed positionsby AmericanMaritime Officers.

Legislation would provide big boostto U.S. shipbuilding, Title XI program

The House of Representatives haspassed an amendment to appropriations leg-islation that would provide, among otheractions aimed at simulating the economy,$100 million in funding for new Title XIguarantees of commercial shipbuildingloans. The Senate has yet to vote on theamendment.

“The transportation and infrastructureinvestments of the [American Recovery andReinvestment Act of 2009] have alreadyplayed a key role in putting Americans backto work,” said Rep. James Oberstar (D-MN),chairman of the Transportation and

Infrastructure Committee, speaking beforethe House. The proposed legislation “willcreate and sustain more than one milliongood, family-wage jobs,” he said.

Approved by the House on Dec. 16,2009, as an amendment to appropriationslegislation for the Commerce, Justice,Science and related agencies, the Jobs forMain Street Act of 2010 would provide $75billion in new stimulus funding. The amend-ment allocates $100 million for new Title XIloan guarantees. If signed into law, this leg-islation would represent one of the largestfederal investments in the Title XI program

since its inception. According to Rep.Oberstar, $100 million in loan guaranteeswould help secure up to $2 billion in com-mercial loans.

In January, Congressman Glenn Nyesent a letter, co-signed by Congressmen RobWittman (R-VA), Bobby Scott (D-VA) andRandy Forbes (R-VA), to House leaders, ask-ing them to include shipbuilding jobs in job-creation legislation expected to come beforethe House in early 2010.

“Investing in shipbuilding is a win-win. It creates good-paying jobs to grow oureconomy, and it helps us meet the national

security needs of the Navy and CoastGuard,” said Rep. Nye, who serves on theSeapower Subcommittee of the HouseArmed Services Committee.

The Title XI loan guarantee programdoes not provide subsidies. Instead, the fed-eral government backs loans needed to buildvessels in U.S. shipyards, easing access tocommercial credit at lower interest ratesfrom private financial institutions. The TitleXI program significantly bolsters the con-struction of Jones Act ships.

“The Maritime Administration cur-rently has more than $2.5 billion in pendingloan guarantee applications to build vesselsworth more than $2.9 billion in U.S. ship-yards,” Rep. Oberstar noted.

The legislation also provides $715million for the Army Corps of Engineers for“environmental restoration, flood protection,hydropower and navigation infrastructure.”

4 • American Maritime Officer February 2010

MSC awardscharter forseven BobHope ClassLMSRs toAMSEA

Military Sealift Command has awarded the operating con-tract for the seven Bob Hope Class large medium-speed roll-on/roll-off ships to American Overseas Marine Corporation, thecurrent operator of the LMSRs. American Maritime Officers willcontinue to man the Bob Hope Class LMSRs in all licensed posi-tions.

The seven ships covered by this, the first lot in the requestfor proposals (RFP), are the USNS Benavidez, USNS Brittin,USNS Bob Hope, USNS Fisher, USNS Mendonca, USNS Pililaau

and USNS Seay. According to the award announcement, six of theseven LMSRs will be maintained in reduced operating status.When needed, these six ships may be activated and fully crewedto transport Department of Defense equipment in support ofdeployed U.S. military forces worldwide. The seventh LMSR willsail in support of the afloat prepositioning mission of the U.S.Marine Corps. The contract includes four one-year option periods

and five six-month award-term periods. If all optional periods areexercised, the contract would extend to September 2017.

MSC has assigned the operating contract for lots two andthree of the RFP – covering the USNS Gordon, USNS Gilliland,USNS Shughart and USNS Yano – to American Ship Management(Patriot Contract Services), a non-AMO company. The USNS

Shughart and USNS Yano have been operated by AMSEA, and theUSNS Gordon and USNS Gilliland have been operated by 3PSCLLC. These two lots were designated as small business set-asidesin the RFP.

“Each of these government RFPs is extremely competitiveand the outcome of each is unpredictable,” said AMO NationalPresident Tom Bethel. “The officers working aboard all of the shipsin the LMSR program have demonstrated the expertise, excellenceand professionalism typical of AMO members and required to makethe missions in which these ships serve successful.”

AMO-contracted Military Sealift Command, ReadyReserve Force ships mobilized for Haiti relief effort

In the aftermath of a 7.0-magnitudeearthquake centered near Port-au-Prince,Haiti on Jan. 12, three Ready ReserveForce vessels have been activated for therelief effort, including the AMO-contract-ed S/S Gopher State, S/S Cornhusker State

and S/S Cape May. The Military SealiftCommand ships USNS Henson, USNS 1st

Lt. Jack Lummus and USNS PFC

Dewayne T. Williams, manned in alllicensed positions by American MaritimeOfficers, have been mobilized to aid inhumanitarian relief.

These ships are among several con-trolled by Military Sealift Command andthree ships from the MaritimeAdministration’s Ready Reserve Forcemobilized at press time in support ofhumanitarian relief efforts in Haiti. TheReady Reserve Force ships come underthe operational control of MSC when acti-vated.

“Sending these ships will help thoseon the front line of this effort save as manylives in Haiti as possible,” said Secretaryof Transportation Ray LaHood. “Theseships will add crucial capabilities by sup-porting operations to move large volumesof people and cargo.”

The earthquake destroyed local portfacilities in Haiti, including the containercrane and two smaller cranes. Theoceanographic research ship USNS

Until the port facilities can berestored, the bulk of relief materials willneed to be shipped by air or be deliveredon vessels capable of offloading without aport. The crane ships Gopher State andCornhusker State are capable of assistingin this capacity. The ships are bothequipped with three independent twin-boom pedestal-mounted rotatinghydraulic deck cranes. These cranes allowcontainers and other cargo to be unloadedin ports with damaged facilities. Both ves-sels are operated by Interocean AmericanShipping Corp.

The Cape May, operated by OceanDuchess Inc., features a unique sub-mersible cargo elevator capable of liftingentire floating causeway sections.

The Cape May recently participatedin the Joint Logistics Over the Shore(JLOTS) exercise, which tested the ship’sability to help deliver cargo to a destina-tion with a damaged, destroyed or non-existent port.

“Once again the U.S. merchantmarine is answering the call for assis-tance, as it has done since our nationbegan,” said Acting MaritimeAdministrator David Matsuda. “Theseships and skilled crews are ideally suitedto assist in Haiti by providing uniquecapabilities. One cargo ship can carry asmuch as 400 fully loaded cargo planes.”

Henson, operated by 3PSC LLC for MSC,will examine the ocean floor and check

the disruption of channels, Navy Times

reported.

AMO members recently working aboard the Cornhusker State (left) and GopherState (right), here in Newport News, Va., included: (Gopher State, no particularorder) First A.E. Jon Sprague, Third A.E. Anthony Neathery, Chief Engineer TimStagg, Capt. Joe Gargiulo and Second A.E. Matt Campbell; (Cornhusker State, noparticular order) Chief Engineer Michael McDermott, Third A.E. Warren Carroll,Second A.E. Chris Gilman, First A.E. Mark Harvey and Capt. Todd Cooper.Additional AMO members aboard the ships as they mobilized for Haiti (not in thepicture) included: (Gopher State) Chief Mate Thomas Litowinsky, Second MateJeffrey Perlstein, Third Mate Terrance Franklin, Third Mate Lucas Balchunas, REOShahnda Caviness, Third A.E. Colin McDonnell and Third A.E. Frederick Reyes;(Cornhusker State) Chief Mate Jan Genemans, Second Mate Mark Holman, ThirdMate John Baucom, Third Mate Erik Bekkelund, REO Ashley Vail, Third A.E.Adamo Ferriero and Third A.E. Scott Williams.

USNS Henson locates aircraft wreckageThe USNS Henson late last year

located the sunken wreckage of an air-craft missing since late October 2009in the waters off the NetherlandsAntilles in the southern Caribbean,Military Sealift Command reported.

The Military Sealift Commandoceanographic survey ship wasdeployed to the region for the U.S.Navy engagement programOceanographic Southern PartnershipStation. The USNS Henson (T-AGS63) is one of seven oceanographic sur-vey ships operated under a new con-tract by 3PSC LLC, which took over

management of the ship Nov. 23, 2009.All seven ships are manned in all licensedpositions by American Maritime Officers.

The Britten-Norman Islander pas-senger airplane crashed into the CaribbeanSea Oct. 22 near the island of Bonaire.Although all nine passengers escaped, thepilot, Robert Mansell, has been classifiedas missing after making a controlled crashlanding on the water and seeing to thesafety of the passengers onboard theplane.

The government of NetherlandsAntilles requested help in locating the air-craft and its pilot. U.S. Naval Forces

Southern Command (SOUTHCOM)and U.S. 4th Fleet (NAVSO/C4F)directed the Henson to search for theaircraft at its last known coordinates.The Henson Nov. 30 located airplanewreckage at a depth of about 625 feetnear those coordinates, MSC reported.

The seven oceanographic surveyships are owned by MSC and operatedfor the Naval Meteorology andOceanography Command by 3PSCLLC. These ships operate worldwide,collecting data that provides much ofthe U.S. military’s information on theocean environment.

USNS Williams

demonstratesship-to-shorecapabilities inMSC exercise

Military Sealift CommandPrepositioning Ship USNS PFC Dewayne T.

Williams recently participated in an exercisedemonstrating ship-to-shore capabilities inthe absence of a port.

The exercise, called Pacific Horizon2010, was held primarily off the coast ofCamp Pendleton, Calif., reported Laura Sealof MSC Public Affairs in the December edi-tion of Sealift. The Williams, operated byAmerican Overseas Marine Corp. andmanned in all licensed positions byAmerican Maritime Officers, droppedanchor three miles off the coast. From thisposition, 41 military vehicles were offloadedto shore and then reloaded onto the vessel, allwithout the use of port facilities.

“This exercise was a great chance forus to practice what we get paid to do,”

AMO member Capt. John Mulderig, masterof the USNS Williams with more than 24years of experience with MilitaryPrepositioning ships, told Seal. “An exer-cise of this magnitude is more complex thanmost people realize, and it’s rare that we getall of the units together to practice.”

Led by the Marine Corps’ 1st MarineExpeditionary Force in coordination withExpeditionary Strike Group Three, Naval

Beach Group One and the crew of theWilliams, the exercise required the at-seaassembly of three watercraft called cause-way ferries. The causeway ferries, eachmeasuring 240 feet long, can carry up toseven six-wheeled Medium Tactical VehicleReplacements or 14 Humvees. The vehi-cles were loaded onto the causeway ferriesvia the Williams’ cranes, operated by itscrew, and then delivered to shore.

“Our job is to get the ship from pointA to point B. But since we know the shipand the equipment so well, we are alwayson hand facilitating,” said Mulderig.

“The professionalism and seaman-ship of Williams’ master and chief mate,and their suggestions about how to best exe-cute the evolution really helped us out,” saidNavy Capt. James O’Connor, commandingofficer of Naval Beach Group One.

American Maritime Officer • 5February 2010

Great Lakes

Lakers saw 34 percent less cargo in 2009

U.S.-flag vessels on the GreatLakes carried just 66.5 million tons ofdry-bulk cargo in 2009, 34 percent lessthan in the previous year, reported theLake Carriers’ Association.

Iron ore shipments totaled 24 mil-lion net tons, the lowest cargo volume indecades. Drastically reduced demandfrom steel plants in the U.S. and Canadastarted to increase late last year but stillhave about 30 percent of their capacity

Fleet leaders express cautious optimism about 2010 cargo float

U.S.-Flag Carriage Year-to-Date (December) 2004-2009 (net tons)

Commodity 2004 2005 2006 2007 2008 2009 5-Year Average

Iron Ore 51,201,511 46,572,119 48,972,112 47,206,383 47,223,494 24,031,087 48,235,124

Coal 24,416,349 27,207,350 25,333,113 25,170,629 24,971,623 20,674,888 25,419,813

Limestone 29,861,141 27,935,513 29,489,410 25,966,057 23,623,070 17,067,232 27,376,838

Cement 3,965,401 3,892,822 4,024,703 3,602,488 3,294,071 2,865,323 3,755,897

Salt 1,032,109 1,187,777 1,126,862 1,241,297 1,224,769 1,260,901 1,162,563

Sand 489,355 461,813 429,411 449,474 359,191 262,805 437,849

Grain 367,785 403,055 357,143 404,873 247,597 304,507 356,091

Total 111,333,651 107,660,449 109,732,754 104,041,201 100,952,815 66,466,743 106,744,174

Source: Lake Carriers’ Association

idle, said Glen Nekvasil, LCA vice presi-dent of corporate communications.

Coal shipments totaled just 21 milliontons, down 17 percent from 2008. Decreasedexports to Canada, a generally cool summerand the weak economy contributed to aslump in coal, the LCA reported.

Limestone shipments were down aswell, due to slowing construction across thecountry and lessened demand for fluxstonefrom the steel industry, the LCA noted.

U.S.-flagged vessels carried slightlymore salt and grain than in 2008.Nevertheless, seven of the 55 vessels inthe U.S.-flagged Great Lakes fleet did notsail in 2009. Several sailed for only shortperiods.

Fleet leaders in the region are cau-tiously optimistic that cargo totals willimprove in 2010, arguing that when theeconomy as a whole starts to recover, ship-ping will follow.

David Fosternew chief ofAmericanSteamship

GATX Corporation announced Jan.19 that David Foster has been appointedpresident of American Steamship Company.American Maritime Officers representslicensed officers and stewards in the ASCfleet, which is the largest U.S.-flag fleet offresh-water self-unloading vessels, servingthe steel, energy and construction industrieson the Great Lakes.

“We are very fortunate to have some-one of Dave’s caliber and experience joinour industry-leading ASC team,” saidClifford Porzenheim, chief executive offi-cer of ASC and senior vice president ofGATX. “I am confident Dave’s extensiveexperience in the shipping industry, cus-tomer focus and management acumen willhelp guide ASC in all aspects.”

Foster has worked in the maritimeindustry for more than 30 years, mostrecently as president of NorthernTransportation Company Ltd., a CanadianArctic marine transportation and fuel sup-ply company. He is a registered profession-al engineer and holds a diploma in navalarchitecture, a master’s degree in businessadministration and a bachelor’s degree inengineering from Memorial University ofNewfoundland.

New EPA fuelregulationsfinalized forlarge vessels

In December, the EnvironmentalProtection Agency finalized a rule settingnew stringent engine and fuel standards forlarge U.S.-flagged vessels.

These fuel standards are tied to and amajor component of the proposedEmissions Control Area (ECA), a geo-graphical designation marking strong envi-ronmental regulations. In March of thisyear, the International MaritimeOrganization will vote on the creation of anECA. If approved, all vessels operatingwithin 200 nautical miles from most U.S.coasts will be required to abide by thesenew standards.

The 147-page ruling, among otheritems, requires Category 3 vessels, thosewith engines with per-cylinder displace-ment at or above 30 liters per cylinder, touse fuel containing no more than 1,000parts per million (ppm) sulfur, effectivewhen the ECA is created. The EPA has setan intended fuel sulfur content limit at 15ppm, which will be phased in by Dec. 1,2014.

The proposed ECA will include theGreat Lakes. However, steamships operat-ing exclusively on the lakes are exemptfrom this ruling, due to their inability to usethe required distillate fuels. Additional lak-ers powered by Category 3 diesel engineshave been granted temporary relief due tothe extreme economic hardship that wouldbe imposed if these vessels were required to

be retrofitted to use the required fuels.American Maritime Officers was

involved in meetings with legislators andthe EPA to provide flexibility for the Great

Lakes vessels in the new EPA rules, whichrecognize shipping as the most efficient andenvironmentally friendly form of cargotransportation in the region.

Also exempted are “public vessels”with a national security exemption andengines that will be used only during anemergency or crisis.

AMO aboard as American Republic completes season

AMO members working aboardthe M/V American Republic as itlaid up for the winter in Januaryin Toledo, Ohio, included SecondAssistant Engineer James Arltand Third A.E. Glenn Barlik. Withthem here are AMO NationalVice President for the GreatLakes Don Cree and AMONational Assistant Vice Presidentfor the Great Lakes Brian Krus.AMO represents the licensedofficers and stewards workingaboard the American Republic,which is owned and operated byAmerican Steamship Company.

AMO member Second Assistant Engineer Sam Grieveworks on the main engine heat exchanger during lay-upon the American Republic in January.

A crane removes life rafts from the American Republicdocked at its winter berth in Toledo, Ohio.

6 • American Maritime Officer February 2010

AMO defined contribution pension plan at a glanceIn January 2011, the American

Maritime Officers defined benefit PensionPlan will be replaced by a defined contribu-tion plan that will provide all deep-sea,Great Lakes and inland waters AMO mem-bers and applicants for AMO membershipwith individual personalized retirement sav-ings accounts funded initially at a 40-per-cent level at no cost to participants. Oncethe defined benefit AMO Pension Plan isfully funded and able to meet all of itsremaining financial obligations to partici-pants, employer contributions to the newdefined contribution retirement accountswill rise to the 100-percent level.

The individual accounts establishedin January 2011 will be in addition to theAMO 401(k) Plan and the AMO PensionPlan Money Purchase Benefit, or MPB, andthey will include individuals who receivedin-service lump-sum pension benefit distri-

butions before the AMO Pension Plan wasforced by law to eliminate this popularoption in October 2009.

Below is an outline of how the newAMO defined contribution retirement sav-ings plan will function. Please see the

schedules on Page 7 for calculating con-

tributions at 40 percent and 100 percent.

This bulletin and the schedules for calculat-ing contributions were published online onAMO Currents and mailed to the homeaddress on file for each AMO member andapplicant.

•Contributions to individual accountswill be based on a formula combining theparticipant’s age and length of service underAMO contract

•Contributions will be based on indi-vidual benefit wages and earned vacation

•Benefit wages will always be current•Contributions to individual accounts

Please see the schedules on Page 7 for calculating contributions at 40 percent and 100 percent

IRS tentatively denies ‘return-to-work’ option of Pension Plan rehabilitationplan; AMO Plans to schedule conference with IRS to review agency’s decision

As addressed in the AMO Pension Planrehabilitation plan — which was posted to theAMO Plans Web site and distributed viaAMO Currents Nov. 13, 2009 — the jointunion-employer trustees of the AmericanMaritime Officers Pension Plan believe firm-ly that senior experienced AMO membersmust remain in their jobs so that they are avail-able to man government-owned and charteredvessels in military sealift operations andnational security emergencies.

For this reason — in connection withthe adoption of the rehabilitation plan by theAMO Pension Plan trustees — the trusteesasked the Internal Revenue Service (IRS) toallow certain retired AMO members to returnto covered employment at sea with suspensionof their monthly retirement benefits whileworking. If the return-to-work option were tobe adopted as part of the rehabilitation planwithout IRS approval, the AMO Pension Plancould lose its status as a tax-qualified retire-ment plan.

Below is the response from the IRS,which was received on Monday, January 25,2010, tentatively denying the request. TheIRS has determined that an employee who“retires” in order to qualify for a benefit, withthe understanding between the employee andemployer that there will be no separation ofservice with the employer and that theemployee will continue to perform servicesfor the employer, is not legitimately retiredunder the IRS rules relating to eligibility toreceive retirement benefits. Such “retire-ments” would violate section 401(a) of theInternal Revenue Code and result in disquali-fication of the AMO Pension Plan under sec-tion 401(a) of the Code.

The trustees are entitled to request aconference with the IRS to review this deci-sion and present any additional informationthat the trustees feel the IRS should take intoaccount before the ruling is finalized, and arein the process of arranging such a conference.Please continue to monitor Currents and theAMO newspaper for updates on this issue.

Text of IRS letter

This letter is in response to your rulingrequest, dated October 15, 2009, regarding theTaxpayer’s request for a ruling regarding thepayment of subsidized early retirement bene-fits in conjunction with the default schedulerequired by section 432(e)(1)(B)(U) of theInternal Revenue Code (the “Code”).

The issue raised relates to the rehabili-

tation plan required as a result of the Plan’sactuary certifying the Plan to be in critical sta-tus effective October 1, 2009. Section 432 ofthe Code requires that the rehabilitation planinclude a default schedule, which mustassume that there are no increases in contribu-tions under the plan other than those necessaryto emerge from critical status after future ben-efit accruals and other benefits have beenreduced by as much as the law allows.

The Taxpayer proposes to present to thecollective bargaining parties a default sched-ule that will eliminate all subsidized earlyretirement benefits, including unreduced ser-vice pensions. The default schedule will elim-inate the ability of participants with 20 ormore years of service to retire with an unre-duced pension benefit. As a result, participantswho have sufficient service to retire without areduction in benefits will no longer be able todo so once the default schedule is in place. TheTaxpayer anticipates that participants who areeligible to retire and receive an unreduced ser-vice pension, over 300 participants, will electto retire rather than wait until age 65 to receivetheir full pension benefit.

The Taxpayer also proposes to giveparticipants notice 60 days prior to the datethat the subsidized service pension benefit iseliminated and that as part of this defaultschedule, eligible participants who retire dur-ing this 60-day window may then return toemployment and have their benefits suspend-ed while working.

The subsidized service pension benefitin question is an early retirement pension ben-efit and the plan’s normal retirement age is 65.Prior to elimination of the benefit, theTaxpayer proposes to allow employees to“retire” on one day in order to qualify for thesubsidized service pension benefit, and returnto work the very next day or perhaps after aweek has passed. In either case, neither theemployee nor the employer will plan on these“retirees” actually terminating employmentand no longer performing services for theemployer when they “retire” and qualify fortheir early retirement pension benefit.

Based on the aforementioned factsyou requested a ruling as to whether allow-ing participants who are eligible for subsi-dized early retirement benefits to “retire” onone day in order to qualify for the earlyretirement subsidy, and then immediatelyreturn to work with payment of their earlyretirement pension benefit suspended,would result in disqualification of the Plan

under section 401 (a) of the Code.Section 401 (a)(36) of the Code pro-

vides that, for plan years beginning afterDecember 31, 2006, a pension plan does notfail to qualify under section 401 (a) solelybecause the plan provides that a distributionmay be made to an employee who has attainedage 62 and who has not separated fromemployment at the time of distribution.

Section 409A of the Code provideswhen deferred compensation under nonquali-fied compensation plans is included in grossincome. Section 409A(a)(2)(A) provides, inpertinent part, that compensation deferredunder a nonqualified deferred compensationplan may not be distributed earlier than sepa-ration from service as determined by theSecretary.

Section 432 (e) of the Code requiresthat a rehabilitation plan must be adopted for amultiemployer plan that is in critical status.

Section 432(e)(1)(B)(i) of the Codeindicates that the plan sponsor must provide tothe bargaining parties 1 or more schedulesshowing revised benefit structures, revisedcontribution structures, or both, which, ifadopted, may reasonably be expected toenable the multiemployer plan to emerge fromcritical status in accordance with the rehabili-tation plan.

Flush language following section432(e)(1)(B)(ii) of the Code provides that theschedule or schedules described in subpara-graph (B)(i) shall reflect reductions in futurebenefit accruals and adjustable benefits (asdefined in 432(e)(8)(A)(iv)(II)) and increasesin contributions, that the plan sponsor deter-mines are reasonably necessary to emergefrom critical status. One schedule shall be des-ignated as the default schedule and suchschedule shall assume that there are noincreases in contributions under the plan otherthan the increase necessary to emerge fromcritical status after future benefit accruals andother benefits (other than benefits the reduc-tion or elimination of which are not permittedunder section 411(d)(6)) have been reduced tothe maximum extent permitted by law.

Section 432(e)(8)(A)(iv)(II) of theCode provides that an adjustable benefitincludes any early retirement benefit or retire-ment-type subsidiary (within the meaning ofsection 411 (d)(6)(8)(i)) and any benefit pay-ment option (other than the qualified joint-andsurvivor annuity).

Section 1.401-1 (a)(2) of the IncomeTax Regulations (“Regulations”) provides that

a qualified pension plan (i.e., a qualifieddefined benefit plan or money purchase pen-sion plan) is a definite written program andarrangement that is communicated to employ-ees and that is established and maintained byan employer to provide for the livelihood ofthe employees or their beneficiaries after theretirement of such employees through the pay-ment of benefits.

Section 1.401-1 (b)(1)(i) of theRegulations provides that a qualified pensionplan must be established and maintained by anemployer primarily to provide systematicallyfor the payment of definitely determinablebenefits for employees over a period of years,usually for life, after retirement.

Section 1.401(a)-1(b)(i) of theRegulations provides that in order for a pen-sion plan to be a qualified plan under section401 (a), the plan must be established andmaintained by an employer primarily to pro-vide systematically for the payment of defi-nitely determinable benefits to its employeesover a period of years, usually for life, afterretirement or attainment of normal retirementage (subject to paragraph (b)(2) of this sec-tion). A plan does not fail to satisfy the require-ments of this paragraph (b)(1)(i) merelybecause the plan provides, in accordance withsection 401 (a)(36), that a distribution may bemade from the plan to an employee who hasattained age 62 and who is not separated fromemployment at the time of such distribution.

Section 1.401(a)-1(b)(1)(ii) of theRegulations provides that section 1.401-1(b)(1)(i), a pre-ERISA regulation, providesrules applicable to the requirement of§1.401(a)-1(b)(i), and that regulation is applic-able except as otherwise provided.

Section 1.409A-1(h)(1)(i) of theRegulations provides that in general anemployee separates from service with theemployer if the employee dies, retires, or oth-erwise has a termination of employment withthe employer.

Section 1.409A-1(h)(1)(ii) of theRegulations provides that whether a termina-tion of employment has occurred is based onwhether the facts and circumstances indicatethat the employer and employee reasonablyanticipated that no further services would beperformed after a certain date or that the levelof bona fide services the employee would per-form after such date (whether as an employeeor as an independent contractor) would per-

See IRS Letter ◆ Page 12

will be made each month as they arereceived from employers

•Contributions for earned vacationdays will be credited to individual accountsat the same time as contributions for daysworked aboard vessels

•Participants will not be required tofile for benefits from the AMO VacationPlan in order to receive contributions earnedduring vacation

•All deep-sea, Great Lakes and inlandwaters AMO members and applicants forAMO membership will be vested in theplan immediately

•The new plan will be fully portable -- participants who leave covered employ-ment under AMO contract at any time forany reason may receive their account bal-ance (subject to applicable tax law).

•Initial account management will bethrough a designated fund, but all partici-

pants will be able to direct account balancesto one of 25 mutual funds or to more thanone fund through either of four investmentmodels once the individual accounts areactive

•Participants will be able to tracktheir accounts online

•No loans will be available from indi-vidual accounts, and distributions will bepermitted only when participants actuallyretire or leave employment under AMOcontract

Once the defined benefit AMOPension Plan is funded sufficiently underthe rehabilitation plan, the values of indi-vidual benefits due from the defined benefitplan will be determined by an actuary, andAMO members and applicants will be ableto transfer these defined benefit balances totheir individual defined contribution retire-ment savings accounts.

American Maritime Officer • 7February 2010

Age 20-34 35-44 45-54 55 & over

Divisor 17.5 15 12.5 10

Age + Service

20 1.14%

21 1.20%

22 1.26%

23 1.31%

24 1.37%

25 1.43%

26 1.49%

27 1.54%

28 1.60%

29 1.66%

30 1.71%

31 1.77%

32 1.83%

33 1.89%

34 1.94%

35 2.00% 2.33%

36 2.06% 2.40%

37 2.11% 2.47%

38 2.17% 2.53%

39 2.23% 2.60%

40 2.29% 2.67%

41 2.34% 2.73%

42 2.40% 2.80%

43 2.46% 2.87%

44 2.51% 2.93%

45 2.57% 3.00% 3.60%

46 2.63% 3.07% 3.68%

47 2.69% 3.13% 3.76%

48 2.74% 3.20% 3.84%

49 2.80% 3.27% 3.92%

50 2.86% 3.33% 4.00%

51 3.40% 4.08%

52 3.47% 4.16%

53 3.53% 4.24%

54 3.60% 4.32%

55 3.67% 4.40% 5.50%

56 3.73% 4.48% 5.60%

57 3.80% 4.56% 5.70%

58 3.87% 4.64% 5.80%

59 3.93% 4.72% 5.90%

60 4.00% 4.80% 6.00%

61 4.07% 4.88% 6.10%

62 4.13% 4.96% 6.20%

63 4.20% 5.04% 6.30%

64 4.27% 5.12% 6.40%

65 4.33% 5.20% 6.50%

66 4.40% 5.28% 6.60%

67 4.47% 5.36% 6.70%

68 4.53% 5.44% 6.80%

69 4.60% 5.52% 6.90%

70 4.67% 5.60% 7.00%

71 5.68% 7.10%

72 5.76% 7.20%

73 5.84% 7.30%

74 5.92% 7.40%

75 6.00% 7.50%

76 6.08% 7.60%

77 6.16% 7.70%

78 6.24% 7.80%

79 6.32% 7.90%

80 6.40% 8.00%

81 6.48% 8.10%

82 6.56% 8.20%

83 6.64% 8.30%

84 6.72% 8.40%

85 6.80% 8.50%

86 6.88% 8.60%

87 6.96% 8.70%

88 7.04% 8.80%

89 7.12% 8.90%

90 7.20% 9.00%

91 9.10%

92 9.20%

93 9.30%

94 9.40%

95 9.50%

96 9.60%

97 9.70%

98 9.80%

99 9.90%

100 10.00%

Contribution Rates @ 40%Age 20-34 35-44 45-54 55 & over

Divisor 7 6 5 4

Age + Service

20 2.86%

21 3.00%

22 3.14%

23 3.29%

24 3.43%

25 3.57%

26 3.71%

27 3.86%

28 4.00%

29 4.14%

30 4.29%

31 4.43%

32 4.57%

33 4.71%

34 4.86%

35 5.00% 5.83%

36 5.14% 6.00%

37 5.29% 6.17%

38 5.43% 6.33%

39 5.57% 6.50%

40 5.71% 6.67%

41 5.86% 6.83%

42 6.00% 7.00%

43 6.14% 7.17%

44 6.29% 7.33%

45 6.43% 7.50% 9.00%

46 6.57% 7.67% 9.20%

47 6.71% 7.83% 9.40%

48 6.86% 8.00% 9.60%

49 7.00% 8.17% 9.80%

50 7.14% 8.33% 10.00%

51 8.50% 10.20%

52 8.67% 10.40%

53 8.83% 10.60%

54 9.00% 10.80%

55 9.17% 11.00% 13.75%

56 9.33% 11.20% 14.00%

57 9.50% 11.40% 14.25%

58 9.67% 11.60% 14.50%

59 9.83% 11.80% 14.75%

60 10.00% 12.00% 15.00%

61 10.17% 12.20% 15.25%

62 10.33% 12.40% 15.50%

63 10.50% 12.60% 15.75%

64 10.67% 12.80% 16.00%

65 10.83% 13.00% 16.25%

66 11.00% 13.20% 16.50%

67 11.17% 13.40% 16.75%

68 11.33% 13.60% 17.00%

69 11.50% 13.80% 17.25%

70 11.67% 14.00% 17.50%

71 14.20% 17.75%

72 14.40% 18.00%

73 14.60% 18.25%

74 14.80% 18.50%

75 15.00% 18.75%

76 15.20% 19.00%

77 15.40% 19.25%

78 15.60% 19.50%

79 15.80% 19.75%

80 16.00% 20.00%

81 16.20% 20.25%

82 16.40% 20.50%

83 16.60% 20.75%

84 16.80% 21.00%

85 17.00% 21.25%

86 17.20% 21.50%

87 17.40% 21.75%

88 17.60% 22.00%

89 17.80% 22.25%

90 18.00% 22.50%

91 22.75%

92 23.00%

93 23.25%

94 23.50%

95 23.75%

96 24.00%

97 24.25%

98 24.50%

99 24.75%

100 25.00%

Contribution Rates @ 100%

The schedules below correspond to the article “AMO defined contribution pension plan at glance” on Page 6

8 • American Maritime Officer February 2010

American Maritime Officers Simulation, Training, Assessment & Research Center2 West Dixie Highway • Dania Beach, FL 33004 • (954) 920-3222

GENERAL COURSES

ISO 9001:2000 LeadAuditor Training

5 days Please Call

ABS NS5 FleetManagement Software

3 days 22 March 28-June

Advanced Fire Fighting 5 days 1 March 5 April 3 May 7 June 5 July 2 August 6 September

Basic Safety Training—All 4modules MUST be completedwithin 12 months

5 days 15 March - Cancelled 10 May 19 July 13 September

Personal SurvivalTechniques (Monday-Tuesday)

1 1/2 days Basic Safety Training8 March - For GreatLakes Engineers

Personal Safety & SocialResponsibility (Tuesdayp.m.)

1/2 day Basic Safety Training9 March - For GreatLakes Engineers

Elementary First Aid(Wednesday)

1 day Basic Safety Training

Fire Fighting & FirePrevention (Thursday-Friday)—Not required if“Combined Basic &Advanced Fire Fighting”completed within 12 months

2 days Basic Safety Training

Basic Safety Training -Refresher

3 days 17 March - Cancelled 12 May 21 July 15 September

Crowd Management 1 day Please Call

Crisis Management &Human Behavior

1 day Please Call

Effective Supervision 2 1/2 days 8 February

Fast Rescue Boat 4 days 1 March 12 April 6 July 30 August 20 September

GMDSS 10 days 15 March - NEW 17 May - NEW 16 August 27 September

Tankerman PIC LNG 8 days 1 March 19 July

LNG Simulator Training—Enrollment priority in the LNG simulator course isgiven to qualified member candidates for employment and/or observation oppor-tunities with AMO contracted LNG companies. Completion of the TankermanLNG PIC classroom course is a prerequisite.

5 days 22 February 22 March 17 May

Ocean Ranger Program 6 days 21 April

Proficiency in Survival Craft (Lifeboat) 4 days 22 February 26 April - DATE CHNG 23 August 27 September

Tankerman PIC DL -Classroom

5 days 15 March 12 July 23 August

Tankerman PIC DL -Simulator

10 days 26 April 21 June 30 August

Train The Trainer—Requires after hours homework 5 days 22 February 12 April 21 June 16 August

Vessel/Company/PortFacility Security Officer

2 days 18 February 5 April 27 May 7 July 8 September

DECK COURSES

Advanced BridgeResource Management

5 days22 February - PMClass

26 July

Advanced Shiphandling for Masters—(No equivalency) Must have sailed asChief Mate Unlimited

5 days 15 February 5 April 24 May 16 August 27 September

Advanced Shiphandling for Third Mates—(60 days seatime equivalency forThird Mates)

10 days 12 April 10 May 21 June 9 August 20 September - PM

Advanced (or emergency)Shiphandling for FirstClass Pilots, Great Lakes

5 days Please Call

Bridge ResourceManagement Seminar

3 days 24 May

Integrated Bridge System/Podded Propulsion 5 days 7 June 6 September

Locking & Docking—FirstClass Pilots, Great Lakes

5 days Please Call

STCW Deck OfficerRefresher

3 days Please Call

Towing Officer Record Assessment—Third mate (Unlimited or Great Lakes)or 1600-ton master license

5 days 5 April 24 May 14 June

Tug Training 5 days 15 March 23 August

Visual Communications(Flashing Light)—test only

1 day Please call

ENGINEERING COURSES

Advanced Slow Speed Diesel 10 days 17 May 20 September

Basic Electricity 10 days 10 May 30 August

Diesel Crossover 4 weeks 7 June

Electrical, Electronic, Control Engineering 4 weeks 7 June 20 September

Engine Room Resource Management 5 days 19 April 9 August

Environmental Awareness (includes Oily Water Separator) 3 days 15 March 17 May 12 July

Gas Turbine Endorsement 10 days 26 April 16 August

High Voltage Safety 3 days 29 March 14 July

Programmable Logic Controllers (PLCs)—An understanding of electricity isrequired. Priority will be afforded to 2 AEs and 3 AEs.

5 days 22 February 12 April 24 May 19 July 13 September

Steam Crossover 4 weeks 12 July

Welding & Metallurgy—course is open to eligible chief mates and masters ona space-available basis. Applications will only be confirmed two weeks prior tostart of course.

2 weeks 15 March 14 June 27 September

MSC TRAINING PROGRAM—includes self-study courses Afloat Environmental Protection Coordinator, Anti-Terrorism Level 1 and Crew Endurance Management (see that section).

CBRD Orientation 1 day 25 February 18 March 30 April 27 May 18 June 29 July 27 August, 16 Sept.

Damage Control 1 day 26 February 29 April 17 June 30 July 26 August

Heat Stress Afloat /Hearing ConservationAfloat

1 day 14 June

Helicopter Fire Fighting 1 day 19 March 28 May 17 September

Marine Sanitation Devices 1/2 day 18 March 20 May 15 July

Medical PIC Refresher—Note: Not MSC approved.

3 days 22 February 7 April 10 May

Small Arms - Initial & Refresher Training—Note:Open to members/applicants eligible for employmentthrough AMO within one year on MSC or MARADvessels

3 days 15, 29 March 12, 26 April 24 May 14, 28 June 12, 26 July9, 23 August13 September

Water Sanitation Afloat 1/2 day 18 March 20 May 15 July

American Maritime Officer • 9February 2010

NOTICE: AMO members planning to attend the union’s Center for Advanced Maritime Officers’ Training/STAR Center in Dania Beach, Florida—either to prepare for license upgrading or to undergo specialty training—are asked to call theschool to confirm course schedule and space availability in advance.

NOTICE OF NON-DISCRIMINATION POLICY AS TO STUDENTS: The Center For Advanced Maritime Officers Training (CAMOT) and Simulation Training Assessment and Research Center (STAR), established under the auspices of theAmerican Maritime Officers Safety and Education Plan, admits students of any race, color, national and ethnic origin or sex to all the rights, privileges, programs and activities generally accorded or made available to students at the Center.It does not discriminate on the basis of race, color, national or ethnic origin or sex in administration of its educational policies, admission policies and other programs administered by the Center.

DECK LICENSE UPGRADE: SECOND OFFICER TO CHIEF MATE / MASTER—Successful completion of this program will satisfy the training requirements for STCW certification as Master or Chief Mate onvessels of 500 or more gross tonnage (ITC). This program will complete ALL 53 Control Sheet assessments of the training requirements for STCW. Course completion certificates do not expire. Operationallevel officers (3/M and 2/M) interested in advancing to Chief Mate/Master (Management) Level are encouraged to start obtaining the required courses as soon as practical after acquiring OICNW experience.Advanced Navigation and a USCG approved ECDIS course must be completed within 12 months of each other to satisfy the Management Level upgrade course and assessment requirements.

Cargo Operations 9 days 8 March 26 April 21 June 23 August

Celestial Navigation—Note: A thorough review and understandingof the topics covered in Parts 4 & 5 of Pub. Number 9, The AmericanPractical Navigator (Bowditch), is a prerequisite.

5 days 22 February 12 April 7 June 9 August

Marine Propulsion Plants 5 days 22 March 10 May 19 July

Shipboard Management 5 days 22 March 10 May 19 July 13 September

Upgrade: Advanced Meteorology 5 days 1 March 19 April 14 June 16 August

Upgrade: Advanced Navigation - ECDIS—Advanced Navigationand a USCG-approved ECDIS to be completed within 12 months ofeach other

5 days 15 February 5 April 24 May 16 August 27 September

Upgrade: Advanced Navigation (Includes Simulator) 5 days 29 March 17 May 9 August 20 September

Upgrade: Shiphandling at the Management Level 10 days 8 March 26 April 21 June 23 August

Upgrade: Stability—Note: It is recommended that chapters 1-13 inthe book Stability and Trim for the Ship’s Officer be reviewed prior toattending this course

5 days 29 March 17 May 26 July

Watchkeeping 1 (Bridge Resource Management)—Note:Watchkeeping Weeks 1 and 2 MUST be completed within 12 monthsof each other.

3 days 24 February 14 April 9 June 28 July

Watchkeeping 2 (COLREGS)—Note: Watchkeeping Weeks 1 and 2MUST be completed within 12 months of each other.

5 days 1 March 19 April 14 June 2 August

OFFICER IN CHARGE OF A NAVIGATIONAL WATCH—Successful completion of this program will satisfy the training requirements for STCW certification as third mate and second mate on vessels of500 or more gross tonnage (ITC)

Terrestrial Navigation 10 days 15 March 6 September

Ship Construction & Stability 5 days 26 July

Electronic Navigation 5 days 8 March 30 August

Meteorology 5 days 15 February 9 August

Watchkeeping 10 days 29 March 20 September

Cargo Handling & Stowage 5 days 22 February 16 August

Basic Shiphandling at the Operational Level 5 days 12 April 4 October

Emergency Procedures and SAR 4 days 2 August

Celestial Navigation 10 days 12 July

Magnetic & Gyro Compass 3 days 1 March 23 August

SELF-STUDY CD & ONLINE PROGRAMS—Available for use when attending other approved classroom courses

Afloat Environmental Protection Coordinator (CD) Anti-Terrorism Level 1 (Online) DoT - Hazardous Materials Transportation Training (CD)

Crew Endurance Management (CD) Prudent Mariner’s Guide to Right Whale Protection (CD) EPA Universal Refrigerant Certification Examination

RADAR COURSES

Radar Recertification 1 day 26 April 9 July 10 September

ARPA 4 days 27 April

Western Rivers Recertification 1 day Please Call

Radar Recertification & ARPA 5 days 26 April

ECDIS 5 days 1, 15 March 10 May 14 June 12 July

Original Radar Observer Unlimited 5 days 29 March - Cancelled 19 April

MEDICAL COURSES

Heat Stress Afloat / Hearing ConservationAfloat

1 day 14 June

Elementary First Aid—Note: Prerequisite forMedical Care Provider within preceding 12months

1 day 16 February 2 March 20 April 24 May 15 June 27 July 24 August, 21 Sept.

Medical Care Provider—Note: Prerequisite forMedical Person In Charge within preceding 12months. Please fax EFA certificate when regis-tering

3 days 17 February 3 March 21 April 25 May 16 June 28 July 25 August, 22 Sept.

Medical Person In Charge—Note: Please FAXMedical Care Provider certificate when register-ing

5 days 8 March 26 April 21 June 2, 30 August 27 September

Medical PIC Refresher—Note: Not MSCapproved.

3 days 22 February 7 April 10 May

Urinalysis Collector Training 1 day 15, 29 March 9 August

Breath Alcohol Test 1 day 16, 30 March 10 August

Saliva Screening Test — QEDs only 1/2 day 17 March 31 March 11 August

OICNW— Additional required courses with priority to students enrolled in the OICNW program — GALLEY COURSES

Original License (Great Lakes) Courses (Deck &Engine)

As Required Please Call Basic Safety Training 5 days15 March - Cancelled19 April

RFPNW Assessments 1 day 4 March GMDSS 10 days 15 March, 17 May

Marlin Spike 1 day 5 MarchGALLEY COURSES

40-Hour Able Seaman 5 days 19 April - Cancelled Please Call

EFA/MCP 4 days Please Call Food Safety, Sanitation & Nutrition (ServSafe) 5 days Please Call

Proficiency in Survival Craft (Lifeboat) 4 days 29 March - Cancelled 26 April Culinary Fundamentals 10 days Please Call

Original Radar 5 days 29 March - Cancelled 19 April Advanced Steward Course 5 days 15 February

MARAD TRAINING PROGRAM—(11 day package composed of the courses below) Students will be nominated and assigned by their contracted company and shall attend all 11 days. Any places nottaken by the contracted companies shall be made available to the membership on a chronological order basis.Small Arms Training (Initial & Refresher)—Note: Open to members/applicants eligible foremployment through AMO within one year onMSC or MARAD vessels

3 days 22 February 28 June 27 September

Elementary First Aid 1 day 25 February 1 July 30 September

Drug Collector Training 1 day 26 February 2 July

Breath Alcohol Test Collector 1 day 27 February 3 July

Advanced Fire Fighting 5 days 1 March 5 July

10 • American Maritime Officer February 2010

Regular monthly membership meetings for AMO will be held during the weekfollowing the first Sunday of every month at 1 p.m. local time. Meetings will beheld on Monday at Headquarters in Dania (on Tuesday when Monday is a con-tract holiday) and on Wednesday in Toledo. The next meetings will take placeon the following dates:

DANIA BEACH:TOLEDO:

March 8, April 5March 10, April 7

HEADQUARTERS

DANIA BEACH, FL 330042 West Dixie Highway(954) 921-2221 / (800) 362-0513Thomas J. Bethel, National President (tbethel@amo-union.org)José E. Leonard, National Secretary-Treasurer (jleonard@amo-union.org)Jack Branthover, Special Assistant to the National President(jbranthover@amo-union.org)FAX: (954) 926-5112Joseph Z. Gremelsbacker, National Vice President, Deep Sea(jgremelsbacker@amo-union.org)John K. Hafner, National Executive Board Member At Large(jhafner@amo-union.org)Charles A. Murdock, National Executive Board Member, Inland Waters (cmurdock@amo-union.org)FAX: (954) 920-3257Dispatch: (800) 345-3410FAX: (954) 926-5126Brendan Keller, Dispatcher (bkeller@amo-union.org)Robert Anderson, Dispatcher (randerson@amo-union.org)Member Services: Extension 1050 (memberservices@amo-union.org)

PORTS

TOLEDO, OH 43604The Melvin H. Pelfrey BuildingOne Maritime Plaza(419) 255-3940(800) 221-9395FAX: (419) 255-2350Donald N. Cree, National Vice President, Great Lakes (dcree@amo-union.org)Brian D. Krus, National Assistant Vice President, Great Lakes(bkrus@amo-union.org)Stan Barnes, National Representative (wbarnes@amo-union.org)Bruce DeWerth, Dispatcher (bdewerth@amo-union.org)

PHILADELPHIA, PA 191132 International Plaza, Suite 422Robert J. Kiefer, National Executive Vice President (rkiefer@amo-union.org)(800) 362-0513 ext. 4001 / 4002Mobile: (215) 859-1059FAX: (610) 521-1301

SAN FRANCISCO / OAKLAND, CA 946071121 7th Street, Second FloorOakland, CA 94607(510) 444-5301(800) 362-0513 ext. 5001Daniel E. Shea, National Executive Board Member At Large(dshea@amo-union.org)FAX: (510) 444-5165

GALVESTON, TX 775512724 61st Street, Suite BPMB 192David M. Weathers, National Executive Board Member At Large(dweathers@amo-union.org)(800) 362-0513 ext. 2001Mobile: (409) 996-7362

NORWOOD, NJ 07648463 Livingston Street, Suite 102PMB 60Donald R. Nilsson, National Executive Board Member, Deep Sea(dnilsson@amo-union.org)(800) 362-0513 ext. 3004Mobile: (201) 913-2209

WASHINGTON, D.C.

WASHINGTON, D.C. 20024490 L’Enfant Plaza East SW, Suite 7204(202) 479-1166 / (800) 362-0513 ext. 7001J. Michael Murphy, National Vice President At Large(mmurphy@amo-union.org)Paul Doell, Legislative Director (pauldoell51@yahoo.com)Phree Baker, Assistant Legislative Director (pbaker@amo-union.org)FAX: (202) 479-1188

STAR CENTER

STUDENT SERVICES/LODGING AND COURSE INFORMATION2 West Dixie HighwayDania Beach, FL 33004(954) 920-3222 ext. 201 / (800) 942-3220 ext. 201Course Attendance Confirmation: (800) 942-3220 ext. 200FAX: (954) 920-314024 Hours: (954) 920-3222 ext.7999

TRAINING RECORDS SYSTEM:Lisa Marra(954) 920-3222 ext. 7118 FAX: (954) 925-5681TRS@star-center.com

MEMBERSHIP SERVICES

MARITIME MEDICAL CENTER AMO PLANS2 West Dixie Highway 2 West Dixie HighwayDania Beach, FL 33004 Dania Beach, FL 33004(954) 927-5213 (800) 348-6515FAX: (954) 929-1415 FAX: (954) 922-7539

LEGAL

Joel Glanstein, General Counsel Michael Reny305 Madison Ave. Suite 2240 AMO Coast Guard LegalNew York, NY 10165 Aid Program(212) 370-5100 (419) 243-1105 / (888) 853-4662FAX: (212) 697-6299 Mobile: (419) 346-1485

MikeReny@BEX.NET

2010 GreatLakes areameetings

ALPENA, MICHIGAN

7 p.m. TUESDAYFEBRUARY 16, 2010Holiday InnUS 23 NorthPhone: (989) 356-2151

TRAVERSE CITY, MICHIGAN

4 p.m. WEDNESDAYFEBRUARY 17, 2010Holiday Inn on the Bay615 E Front Street Phone: (231) 947-3700

DULUTH, MINNESOTA

4 p.m. THURSDAYFEBRUARY 18, 2010Holiday Inn2nd Avenue, W 1st Street Phone: (218) 722-1202

Radar Recertification courses nowavailable to AMO members in Toledo

STAR Center has formalized an agreement with the Toledo Maritime Academy toprovide Radar Recertification courses to eligible participants of the AMO Safety &Education Plan. Although the courses are open to all eligible members of AmericanMaritime Officers, STAR Center developed this program specifically for the convenienceof members sailing on the Great Lakes.

Interested participants should apply to Student Services in Dania Beach, which willcoordinate enrollment with the academy. A STAR Center Radar Recertification certificatewill be issued upon successful completion of the course. All enrollment applications mustbe received and processed at least two days prior to each class, and walk-ins will not beaccepted.

Remaining 2010 course dates have been scheduled as follows: Feb. 18, March 4 andMarch 18.

Enrollment questions or applications should be directed to Student Services at (800)942-3220 Ext. 201 or via e-mail to register@star-center.com.

American Maritime Officer • 11February 2010

New contracts, significant gains for AMO membersUnion secures agreements covering Maersk Line Limited tankers, Seabulk tankers

Maersk Line Limited tankers

American Maritime Officers hassecured a new three-year agreement featur-ing significant wage increases with MaerskLine Limited covering the tankers Rhode

Island and Michigan.The negotiating committee met with

Maersk Line Limited executives Jan. 5 to 8at the AMO office in Washington, D.C.Rank-and-file AMO members serving onthe negotiating committee with AMONational Executive Vice President BobKiefer and AMO Contract Analyst ChrisHolmes were Patrick McGroggan, masterof the Maersk Rhode Island, and MichaelRoss, master of the Maersk Michigan.

“The bargaining committee memberscontributed direct knowledge of the ships’operating requirements and working condi-tions, and assisted tremendously in achiev-ing our goals at the bargaining table,”Kiefer said. “The final agreement reflectsMaersk Line’s understanding of the needfor crew continuity on these ships and theirwillingness to reward the AMO officerswho man them for their performance,expertise and professionalism.

“Our negotiating team was successfulin achieving wage parity for the Michigan

and Rhode Island with other AMO-con-tracted companies. This resulted in across-the-board increases for all licensed ratingsfor the life of this agreement, and substan-tial wage gains for the senior officers,”Kiefer said. “The committee was also suc-cessful in negotiating increases in travel payand favorable changes in rotation periods.”

The three-year agreement includes allactuarially required increases in contribu-tions to the AMO Plans and incorporates thenecessary language for the AMO PensionPlan rehabilitation plan.

The new agreement will apply to theMaersk Michigan while it is operatingunder a bareboat charter to Argent Marinein the Maritime Security Program fleet.

Seabulk Tankers

American Maritime Officers inJanuary secured a new three-year agree-ment covering six ships operated bySeabulk Tankers.

Rank-and-file AMO members serv-ing on the negotiating committee were RexKelley, chief engineer of the Seabulk

Trader, and Michael Kurr, master of theSeabulk America.

“The committee members are to becommended for securing an agreement withacross-the-board wage increases in eachyear of the contract, as well as improve-ments in the travel per diem during crewchanges,” said AMO National ExecutiveVice President Robert Kiefer. “These gainswere made despite weak energy markets, adepressed economy and a sizable influx ofnew tonnage into the energy transportationtrades.”

The agreement signed in January isretroactive to the expiration of the previouscontract and includes all required increasesin contributions to the AMO Plans and thenecessary language for the AMO PensionPlan rehabilitation plan.

AMO members serving on the negotiating committee for the Maersk LineLimited tankers with AMO National Executive Vice President Bob Kiefer andAMO Contract Analyst Chris Holmes were Patrick McGroggan, master of theMaersk Rhode Island, and Michael Ross, master of the Maersk Michigan.

AMO members serving on the negotiating committee (front row: left to right)were Michael Kurr, master of the Seabulk America, and Rex Kelley, chief engi-neer of the Seabulk Trader. With them are AMO National Executive VicePresident Bob Kiefer, AMO Contract Analyst Chris Holmes, AMO NationalSecretary-Treasurer José Leonard (former Seabulk captain) and AMO NationalExecutive Board Members Dave Weathers (former Seabulk chief engineer) andCharles Murdock.

Construction of AMO headquartersproceeding on schedule, on budget

The construction of a headquartersbuilding for American Maritime Officers inDania Beach, Fla., is proceeding on scheduleand on budget. AMO National Secretary-Treasurer José Leonard, who is overseeingthe project, expects the building will be com-pleted in November of this year and ready foroccupancy by January 2011.

“I’m pleased with the progress so farand we’re on track to have the building itselfcompleted this year,” Leonard said. “Therehave been some minor delays along the wayin the permitting process with the city ofDania Beach, mostly due to the uniquenature and purpose of the building withregard to current city codes for commercialand retail development. These issues havebeen resolved.

“Commercial construction in this areais at a low, so from AMO’s standpoint, this isthe best time for an undertaking of this mag-nitude,” Leonard said. “The timing of thisproject has saved AMO a significant amountof money and the headquarters building willbe a standout in the Dania Beach corridor ofFederal Highway.

“This headquarters building will be avery important asset for AMO members,” hesaid. “All union offices and resources will beconsolidated under one roof for the conve-nience of the membership. Currently weoperate out of three and sometimes four dif-ferent locations here in Dania Beach. Thisbuilding will feature a spacious meeting hall,conference rooms, and ample office spacefor AMO members to conduct business in aprofessional and confidential setting.”

The headquarters project originated

transaction exemption by the Department ofLabor, the AMO Safety & Education Planpurchased the 6.5 acres of land and buildingsowned by the union. A portion of the pro-ceeds from the sale is being used to pay forthe construction of the AMO headquartersbuilding on land owned outright by the unionacross the street from the AMO Plans/STARCenter campus. The balance of the purchaseprice will remain in the union’s treasury.

The union conducted a 90-day union-wide secret ballot referendum, in which con-struction of the new AMO headquartersbuilding was approved by a 66-percent mar-gin on July 16.

Due to the extremely depressed con-struction market in South Florida, buildingcontractors submitted bids that were approx-imately $1 million lower than had been orig-inally estimated for construction of the head-quarters building as designed. AMO accept-ed a bid for $3.9 million, and sold the 6.5acres of land and buildings to the AMOSafety & Education Plan for a fair marketvalue of $10 million.

“The construction of AMO headquar-ters benefits both the union membership andAMO Plans,” said AMO National PresidentTom Bethel. “AMO will have a home base tomeet the professional needs of the member-ship and a headquarters that reflects AMO’sstatus as the largest American union of mer-chant marine officers.

“It’s important for everyone to under-stand the S&E Plan had set aside the moneyfor this purchase, and the money from theSafety and Education Trust could not betransferred to the Pension Plan under any cir-cumstances,” Bethel said. “Not everyonerealizes this project arose from the S&EPlan’s dire need to expand training andadministrative capacity. STAR Center cannow move ahead with expansion and reno-vation as needed to better serve AMO mem-bers attending courses in Dania Beach.”

January 8, 2010

November 24, 2009

when the AMO Safety and Education Plan,which operates STAR Center, expressed aninterest in purchasing the land upon whichthe STAR Center, student housing, AMOPlans and AMO union facilities reside. Theunion owned the 6.5 acres of land and someof the buildings, while the AMO Safety andEducation Plan owns the four-story buildingthat is the core of STAR Center training pro-grams. Because the union owned the land,

the S&E Plan was required to obtain a spe-cial permit from the federal government(known as a ‘prohibited transaction exemp-tion’) any time structural changes or expan-sion were needed.

This arrangement had for years hin-dered or rendered impossible much neededexpansion of STAR Center classroom andtraining capacity.

Following the approval of a prohibited

The STAR Center course application form will be printed in the March edition and is available online at www.amo-union.org/PDFs/STARapplication.pdf

12 • American Maritime Officer February 2010

Ocean Atlas delivers forNew York transit project

When the Ocean Atlas arrived at thePort of Baltimore on Jan. 5, carrying 40 sub-way car body shells, it fulfilled an importantmilestone in the largest rail contract in U.S.history.

A partnership between the MaritimeAdministration, New York City TransitAuthority and Intermarine, among others, theproject represents a substantial upgrade toNew York City’s subway system. When theOcean Atlas arrived with its latest cargo, itsignified the completion of the contract’sU.S.-flag requirement.

In all, the Ocean Atlas made 18 trips toBrazil and back while shipping the subwaycar bodies.

“AMO is proud to be a part of theachievement of the Ocean Atlas in thisimportant U.S.-flag project,” said AMONational President Tom Bethel, who repre-sented the union at the ceremony in the Portof Baltimore. “This occasion exemplifiesthe professionalism of AMO officers, thesound fleet management of Pacific-GulfMarine and immense value of the MaritimeSecurity Program to our nation’s defenseand commerce.”

The Maritime Administration “isextremely pleased to support a project thatemploys the men and women who serve inAmerica’s merchant marine,” said TomHarrelson, MARAD director of cargo pref-erence and domestic trade. “It is vital tosupport this industry that is so critical to ourcountry’s defense. Merchant mariners arethe first ones in and the last out of the com-bat zone.”

Former Congresswoman HelenBentley, who played an important role inpassing the 1954 Cargo Preference Act,spoke at the port. “I commend everybodywho was involved and thank you for every-thing you’re doing and continue to do for theU.S. merchant marine,” she said.

The Ocean Atlas is one of two U.S.-flagged heavy-lift ships operated in theMaritime Security Program fleet by Pacific-Gulf Marine and manned in all licensed posi-tions by American Maritime Officers. Theother heavy-lift ship in the MSP fleet is theOcean Titan. Additionally, AMO representsall licensed officers aboard a third heavy-liftsister ship, the Ocean Charger. All threeships are operated by PGM for Intermarine.

AMO NationalPresident TomBethel joinsOcean AtlasChief MateScott Lund andMaster JeffRaider on thebridge wing atthe ceremonymarking thecompletion ofthe U.S.-flagshipments ofsubway carbodies for theNew York CityTransit Authorityproject.

Those attending the ceremony at the Port of Baltimore included AMO NationalPresident Tom Bethel, Capt. Jeff Raider — master of the Ocean Atlas,Intermarine President Andre Grikitis, and former Congresswoman Helen Bently.

manently decrease to no more than 20 percentof the average level of bona fide services per-formed) whether as an employee or an inde-pendent contractor) over the immediately pre-ceding 36-month period (or the full period ofservices to the employer if the employee hasbeen providing services to the employer lessthan 36 months).

Section 1.409A-1(h)(1)(ii) of theRegulations also provides that facts and cir-cumstances to be considered in making thisdetermination include, but are not limited to,whether the employee continues to be treatedas an employee for other purposes (such ascontinuation of salary and participation inemployee benefit programs), whether similar-ly situated service providers have been treatedconsistently, and whether the employee is per-mitted, and realistically available, to performservices for other service recipients in thesame line of business.

Section 1.409A-1(h)(1)(ii) of theRegulations provides the following exam-ple: An employee may demonstrate that theemployer and employee reasonably antici-pated that the employee would cease provid-ing services, but that, after the original ces-sation of services, business circumstancessuch as termination of the employee’sreplacement caused the employee to returnto employment. Although the employee’sreturn to employment caused the employeeto be presumed to have continued inemployment because the employee is pro-viding services at a rate equal to the rate atwhich the employee was providing servicesbefore the termination of employment, thefacts and circumstance in this case woulddemonstrate that at the time the employeeoriginally ceased to provide services, theemployee and the service recipient reason-ably anticipate that the employee would notprovide services in the future.

Section 1.410(a)-7(b)(2) of theRegulations defines “severance of servicedate” as the earlier of the date on which anemployee quits, retires, is discharged or dies, orthe first anniversary of the first date of absenceor for any other reason. The severance of ser-vice date is used to provide an endpoint forcrediting service and to apply the statutory

“break in service” rules to an elapsed timemethod of crediting service under 1.410(a)-7.

Section 1.410(a)-7(b)(6) of theRegulations defines “period of service” in per-tinent part, generally as a period of servicecommencing on the employee’s employmentcommencement date and ending on the sever-ance from service date.

Revenue Ruling 79-336,1979-2 C.B.187, provides that, for purposes of the specialforward averaging treatment of lump sum dis-tributions under §402(d), an employee will beconsidered separated from service within themeaning of §402(e)(4)(D) (formerly402(e)(4)(A)) of the Code only upon theemployee’s death, retirement, resignation, ordischarge, and not when the employee contin-ues on the same job for a different employer asa result of the liquidation, merger, or consoli-dation, etc. of the former employer.

Meredith v. Allsteel, Inc., 11 F.3d 1354(7th Cir. 1993), in deciding on what date anemployee actually retired, concluded byapplying common law rules of contract inter-pretation, that the word retire is to be given itsordinary meaning. The court opined: “In com-mon parlance, retire means to leave employ-ment after a period of service. See Webster’sNinth New Collegiate Dictionary 1007 (1986)(retire is “to withdraw from one’s position oroccupation: to conclude one’s working or pro-fessional career”).”

Ahng v. Allsteel, lnc. 96 F.3d 1033 (7thCir. 1996) in reviewing Meredith v. Allsteel,Inc., 11 F.3d 1354 (7th Cir. 1993) (with regardto its earlier decision on the question ofwhether the anti-cutback rule of theRetirement Equality Act of 1984, Pub. L. No98-397, 98 Stat. 1426 (1984), which amendedERISA § 204(g), should be interpreted to pro-hibit pension plan amendments or termina-tions that reduce or eliminate an employee’sability to participate in early retirement bene-fits) let stand the definition of the word retireprovided in Meredith.

Taken together, sections 1.409A-1(h)(1)(i) and 1.409A-1(h)(1)(ii) provide thatwhen an employee legitimately retires, he sep-arates from service with the employer.Accordingly if both the employer andemployee know at the time of “retirement”that the employee will, with reasonably cer-tainty, continue to perform services for theemployer, a termination of employment hasnot occurred upon “retirement” and the

employee has not legitimately retired.Section 1.410(a)-7(b)(2) defines the

“severance of service date” as the earlier of thedate on which an employee quits, retires, isdischarged or dies, or the first anniversary ofthe first date of absence or for any other rea-son. Section 1.410(a)-7(b)(6) defines “periodof service” as generally ending on an employ-ee’s severance of service date. Taken together,sections 1.410(a)-7(b)(2) and 1.410(a)-7(b)(6)provide that an employee retires on a sever-ance of service date, when his period of ser-vice ends.

In Meredith v. Allsteel Inc., the seventhcircuit court of appeals defined the word retireto have its ordinary meaning. Specifically thecourt provided that in common parlance, retiremeans to leave employment after a period ofservice mentioning that Webster’s Ninth NewCollegiate Dictionary 1007 (1986) definedretire as: “to withdraw from one’s position oroccupation: to conclude one’s working or pro-fessional career. In Ahng v. Allsteel, Inc.,while reviewing the Meredith case, the samecourt retained this definition of the word retire.Accordingly an employee would not legiti-mately retire if he did not actually leaveemployment upon retirement.

Although section 409A and its regula-tions address a nonqualified plan arrange-ment the definitions regarding terminationand separation from service are consistentwith the definition of “severance of servicedate” found in 1.410(a)-7(b)(2) and both areconsistent with the conclusion of RevenueRuling 79-336. These regulations andRevenue Ruling serve to clarify that anemployee legitimately retires when he stopsperforming service for the employer andthere is not the explicit understandingbetween the employer and employee thatupon retirement the employee will immedi-ately return to service with the employer.That an employee severs his employmentwith the employer when he retires is direct-ly expressed in the definition of the wordretire found in Meredith v. Allsteel Inc.

On November 10, 2004, a notice ofproposed rulemaking (REG-114726-04)under section 401 was published in theFederal Register (69 DE 65108) (the “pro-posed regulations”). The proposed regulationsprovided rules permitting distributions to bemade from pension plan under a phased retire-ment program and set forth requirements of

bona fide phased retirement program. Thepreamble to the proposed regulations providesthat the proposed regulations: “specifically donot endorse a prearranged termination andrehire as constituting a full retirement.”

In accordance with §§1.401(a)-1(b)(1)(i) and 1.401-1(b)(1)(i), because aqualified pension plan is generally not permit-ted to pay benefits before retirement, anemployee who “retires” with the explicitunderstanding between the employer andemployee that upon retirement the employeewill immediately return to service with theemployer has not legitimately retired and maynot qualify for an early retirement benefitunder the Plan.

We have tentatively concluded thatemployees who “retire” on one day in order toqualify for a benefit under the Plan, with theexplicit understanding between the employeeand employer that they are not separatingfrom service with the employer, are not legiti-mately retired. Accordingly because theseemployees would not actually separate fromservice and cease performing services for theemployer when they “retire” these “retire-ments” would not constitute a legitimate basisto allow participants to qualify for early retire-ment benefits (which are then immediatelysuspended.) Such “retirements” will violatesection 401(a) of the Code and result in dis-qualification of the Plan under section 401(a)of the Code.

However, in accordance with section401(a)(36) of the Code, employees who haveattained age 62 upon benefit commencementmay qualify for and receive an early retire-ment benefit under the Plan white they contin-ue in employment.

Please note that this ruling does notexpress any other opinion regarding the suit-ability of the proposed default schedule or theassociated rehabilitation plan.

This ruling letter is directed solely tothe taxpayer who requested it. Section6110(k)(3) of the Code provides that it maynot be used or cited by others as precedent.In accordance with section 12.01 of Rev.Proc. 2009-4, you are entitled to request aconference of right to review this decisionand present additional information that youbelieve the Service should take into accountbefore finalizing this ruling. This conferencemay be held either by telephone or at theIRS offices in Washington, D.C.

IRS LetterContinued from Page 6