U.S. Department of Labor
Office of Labor-Management Standards
Washington, DC 20210
FORM LM-2 LABOR ORGANIZATION ANNUAL REPORT
Form Approved
Office of Management and Budget
No.
1245-0003
Expires:
09-30-2021
MUST BE USED BY LABOR ORGANIZATIONS WITH $250,000 OR
MORE IN TOTAL ANNUAL RECEIPTS AND LABOR ORGANIZATIONS IN
TRUSTEESHIP
This report is
mandatory under P.L. 86-257, as amended. Failure to comply
may result in criminal prosecution, fines, or civil penalties as
provided by 29 U.S.C. 439 or 440.
READ THE INSTRUCTIONS CAREFULLY BEFORE PREPARING THIS
REPORT.
For Official Use Only
1. FILE NUMBER
002-139
2.
PERIOD COVERED
From
01/01/2020
Through
12/31/2020
3.
(a) AMENDED - Is this an amended report:
No
(b) HARDSHIP - Filed under the hardship procedures:
No
(c) TERMINAL - This
is a terminal report:
No
4. AFFILIATION OR ORGANIZATION NAME
TEAMSTERS
5. DESIGNATION (Local, Lodge, etc.)
LOCAL UNION
6. DESIGNATION NBR
538
7. UNIT NAME (if any)
8. MAILING ADDRESS (Type or print in capital
letters)
First Name
BETTY
Last Name
FISCHER
P.O Box - Building and Room Number
P.O. BOX 128
Number and Street
City
WORTHINGTON
State
PA
ZIP Code + 4
162620128
9. Are your organization's records kept at its
mailing address?
Yes
Each of the undersigned, duly authorized
officers of the above labor organization, declares,
under penalty of perjury and other applicable penalties
of law, that all of the information submitted in this
report (including information contained in any
accompanying documents) has been examined by the
signatory and is, to the best of the undersigned
individual's knowledge and belief, true, correct
and complete (See Section V on penalties in the
instructions.)
70. SIGNED:
Lonnie Birckbichler
PRESIDENT
71. SIGNED:
Betty R Fischer
TREASURER
Date:
Mar 30, 2021
Telephone
Number:
724-991-7884
Date:
Mar 30, 2021
Telephone
Number:
724-297-3427
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
ITEMS 10 THROUGH 21
FILE NUMBER:
002-139
10. During the reporting period did the labor
organization create or participate in the administration of
a trust or a fund or organization, as defined in the
instructions, which provides benefits for members or
beneficiaries?
Yes
11(a). During the reporting period did the
labor organization have a political action committee (PAC)
fund?
No
11(b). During the reporting period did the
labor organization have a subsidiary organization as
defined in Section X of these Instructions?
No
12. During the reporting period did the labor
organization have an audit or review of its books and
records by an outside accountant or by a parent body
auditor/representative?
Yes
13. During the reporting period did the labor
organization discover any loss or shortage of funds or
other assets? (Answer "Yes" even if there has
been repayment or recovery.)
No
14. What is the maximum amount recoverable
under the labor organization's fidelity bond for a
loss caused by any officer, employee or agent of the labor
organization who handled union funds?
$100,000
15. During the reporting period did the labor
organization acquire or dispose of any assets in a manner
other than purchase or sale?
No
16. Were any of the labor organization's
assets pledged as security or encumbered in any way at the
end of the reporting period?
No
17. Did the labor organization have any
contingent liabilities at the end of the reporting period?
Yes
18. During the reporting period did the labor
organization have any changes in its constitution or
bylaws, other than rates of dues and fees, or in
practices/procedures listed in the instructions?
No
19. What is the date of the labor
organization's next regular election of officers?
12/2023
20. How many members did the labor organization
have at the end of the reporting period?
686
21. What are the labor organization's rates of dues
and fees?
Rates of Dues and Fees
Dues/Fees
Amount
Unit
Minimum
Maximum
(a) Regular Dues/Fees
0
per
Month
16
91
(b) Working Dues/Fees
0
per
(c) Initiation Fees
0
per
15
175
(d) Transfer Fees
0
per
(e) Work Permits
0
per
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
STATEMENT A - ASSETS
AND LIABILITIES
FILE NUMBER:
002-139
ASSETS
ASSETS
Schedule
Number
Start of Reporting Period
(A)
End of Reporting Period
(B)
22. Cash
$121,299
$185,652
23. Accounts Receivable
1
$0
$0
24. Loans Receivable
2
$0
$0
25. U.S. Treasury
Securities
$0
$0
26. Investments
5
$100,957
$92,329
27. Fixed Assets
6
$34,257
$32,111
28. Other Assets
7
$5,400
$6,251
29.
TOTAL ASSETS
$261,913
$316,343
LIABILITIES
LIABILITIES
Schedule
Number
Start of Reporting Period
(A)
End of Reporting Period
(B)
30. Accounts Payable
8
$8,610
$9,628
31. Loans Payable
9
$0
$0
32. Mortgages Payable
$0
$0
33. Other Liabilities
10
$110
$83
34. TOTAL
LIABILITIES
$8,720
$9,711
35. NET
ASSETS
$253,193
$306,632
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
STATEMENT B -
RECEIPTS AND DISBURSEMENTS
FILE NUMBER:
002-139
CASH
RECEIPTS
SCH
AMOUNT
36. Dues and Agency Fees
$404,211
37. Per Capita Tax
$0
38. Fees, Fines,
Assessments, Work Permits
$50,468
39. Sale of Supplies
$0
40. Interest
$82
41. Dividends
$0
42. Rents
$0
43. Sale of Investments
and Fixed Assets
3
$11,067
44. Loans Obtained
9
$0
45. Repayments of Loans
Made
2
$0
46. On Behalf of
Affiliates for Transmittal to Them
$0
47. From Members for
Disbursement on Their Behalf
$0
48. Other Receipts
14
$48
49. TOTAL RECEIPTS
$465,876
CASH DISBURSEMENTS
SCH
AMOUNT
50.
Representational Activities
15
$137,845
51.
Political Activities and Lobbying
16
$2,571
52.
Contributions, Gifts, and Grants
17
$4,389
53. General
Overhead
18
$50,231
54. Union
Administration
19
$45,545
55. Benefits
20
$40,984
56. Per
Capita Tax
$103,656
57. Strike
Benefits
$0
58. Fees,
Fines, Assessments, etc.
$0
59. Supplies
for Resale
$0
60. Purchase
of Investments and Fixed Assets
4
$0
61. Loans
Made
2
$0
62.
Repayment of Loans Obtained
9
$0
63. To
Affiliates of Funds Collected on Their Behalf
$0
64. On
Behalf of Individual Members
$0
65. Direct
Taxes
$16,302
66. Subtotal
$401,523
67.
Withholding Taxes and Payroll Deductions
67a. Total
Withheld
$49,457
67b. Less Total
Disbursed
$49,457
67c.
Total Withheld But Not Disbursed
68.
TOTAL DISBURSEMENTS
$401,523
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 1 - ACCOUNTS
RECEIVABLE AGING SCHEDULE
FILE NUMBER:
002-139
Entity or Individual Name
(A)
Total Account Receivable
(B)
90-180 Days
Past Due
(C)
180+ Days
Past Due
(D)
Liquidated Account
Receivable
(E)
Total of all itemized
accounts receivable
$0
$0
$0
$0
Totals from all other
accounts receivable
Totals
(Total of Column (B) will be automatically entered in Item
23, Column(B))
$0
$0
$0
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 2 - LOANS
RECEIVABLE
FILE NUMBER:
002-139
List below loans to officers, employees, or members which
at any time during the reporting period exceeded $250 and
list all loans to business enterprises regardless of amount.
(A)
Loans
Outstanding at
Start of Period
(B)
Loans Made
During Period
(C)
Repayments Received During Period
Cash
(D)(1)
Other Than Cash
(D)(2)
Loans
Outstanding at
End of Period
(E)
Total of loans not
listed above
Total of all lines
above
$0
$0
$0
$0
$0
Totals will be
automatically entered in...
Item 24
Column (A)
Item 61
Item 45
Item 69
with Explanation
Item 24
Column (B)
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 3 - SALE OF
INVESTMENTS AND FIXED ASSETS
FILE NUMBER:
002-139
Description (if land or buildings, give location)
(A)
Cost
(B)
Book Value
(C)
Gross Sales Price
(D)
Amount Received
(E)
Total of all
lines above
$11,067
$11,067
$11,067
$11,067
Certificate of Deposit - Huntington Bank
$11,067
$11,067
$11,067
$11,067
Less Reinvestments
$0
(The
total from Net Sales Line will be automatically entered
in Item 43)
Net Sales
$11,067
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 4 - PURCHASE
OF INVESTMENTS AND FIXED ASSETS
FILE NUMBER:
002-139
Description (if land or buildings, give location)
(A)
Cost
(B)
Book Value
(C)
Cash Paid
(D)
Total
of all lines above
$0
$0
$0
Less Reinvestments
$0
(The
total from Net Purchases Line will be automatically
entered in Item 60.)
Net Purchases
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 5 -
INVESTMENTS
FILE NUMBER:
002-139
Description
(A)
Amount
(B)
Marketable Securities
A. Total Cost
$90,297
B. Total Book Value
$92,329
C. List each
marketable security which has a book value over $5,000
and exceeds 5% of Line B.
Certificate of Deposit - Dollar Bank
$92,329
Other Investments
D. Total Cost
E. Total Book Value
F. List each other
investment which has a book value over $5,000 and
exceeds 5% of Line E. Also, list each subsidiary
for which separate reports are attached.
G. Total of Lines B and E
(Total will be automatically entered in Item 26,
Column(B))
$92,329
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 6 - FIXED
ASSETS
FILE NUMBER:
002-139
Description
(A)
Cost or Other Basis
(B)
Total Depreciation or
Amount Expensed
(C)
Book Value
(D)
Value
(E)
A.
Land (give location)
Land
1
:
West Franklin Township, Armstrong County
$20,771
$20,771
$0
B.
Buildings (give location)
Building
1
:
West Franklin Township, Armstrong County
$220,812
$214,371
$6,441
$75,000
Building
2
:
Storage Shed, Armstrong County
$16,282
$12,356
$3,926
$10,000
C. Automobiles
and
Other Vehicles
D. Office
Furniture
and Equipment
$35,786
$34,813
$973
$1,500
E.
Other Fixed Assets
F. Totals of Lines A through E
(Column(D) Total will be automatically entered in Item
27, Column(B))
$293,651
$261,540
$32,111
$86,500
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 7 - OTHER
ASSETS
FILE NUMBER:
002-139
Description
(A)
Book Value
(B)
Total
(Total will be automatically entered in Item 28, Column(B))
$6,251
Prepaid Insurance
$6,201
Utility Deposit
$50
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 8 - ACCOUNTS
PAYABLE AGING SCHEDULE
FILE NUMBER:
002-139
Entity or Individual Name
(A)
Total Account
Payable
(B)
90-180 Days
Past Due
(C)
180+ Days Past
Due
(D)
Liquidated Account
Payable
(E)
Total for all itemized accounts payable
$0
$0
$0
$0
Total from all other accounts payable
$9,628
$0
$0
$0
Totals
(Total for Column(B) will be automatically entered in Item
30, Column(D))
$9,628
$0
$0
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 9 - LOANS
PAYABLE
FILE NUMBER:
002-139
Source of Loans Payable at Any
Time During the Reporting Period
(A)
Loans Owed at
Start of Period
(B)
Loans Obtained
During Period
(C)
Repayment
During Period
Cash
(D)(1)
Repayment
During Period
Other Than Cash
(D)(2)
Loans Owed at
End of Period
(E)
Total Loans Payable
$0
$0
$0
$0
$0
Totals will be automatically entered in...
Item 31
Column (C)
Item 44
Item 62
Item 69
with Explanation
Item 31
Column (D)
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 10 - OTHER
LIABILITIES
FILE NUMBER:
002-139
Description
(A)
Amount at End of Period
(B)
Total Other Liabilities
(Total will be automatically entered in Item 33, Column(D))
$83
Accrued Payroll Taxes and Withheld Deductions
$83
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 11 - ALL
OFFICERS AND DISBURSEMENTS TO OFFICERS
FILE NUMBER:
002-139
(A) Name
(B) Title
(C) Status
(D)
Gross Salary
Disbursements
(before any
deductions)
(E)
Allowances
Disbursed
(F)
Disbursements
for Official Business
(G)
Other
Disbursements not reported in
(D) through (F)
(H)
TOTAL
A
B
C
Birckbichler
,
Lonnie
President C
$598
$1,800
$32
$0
$2,430
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
0
%
Schedule 19
Administration
95
%
A
B
C
Smith
,
Mark
Vice President C
$0
$1,800
$0
$0
$1,800
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
0
%
Schedule 19
Administration
95
%
A
B
C
Fischer
,
Betty
R Secretary Treasurer C
$113,690
$5,400
$7,189
$0
$126,279
I
Schedule 15
Representational Activities
70
%
Schedule 16
Political Activities and Lobbying
2
%
Schedule 17
Contributions
1
%
Schedule 18
General Overhead
2
%
Schedule 19
Administration
25
%
A
B
C
Hassa
,
Matthew
Recording Secretary C
$147
$1,800
$0
$0
$1,947
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
0
%
Schedule 19
Administration
95
%
A
B
C
Wagner
,
Randy
Trustee C
$0
$1,800
$0
$0
$1,800
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
0
%
Schedule 19
Administration
95
%
A
B
C
Blake
,
Robert
Trustee C
$0
$1,800
$0
$0
$1,800
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
0
%
Schedule 19
Administration
95
%
A
B
C
Lohr
,
Kathy
Trustee C
$0
$1,800
$0
$0
$1,800
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
0
%
Schedule 19
Administration
95
%
Total Officer
Disbursements
$114,435
$16,200
$7,221
$0
$137,856
Less Deductions
$46,127
Net
Disbursements
$91,729
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 12 -
DISBURSEMENTS TO EMPLOYEES
FILE NUMBER:
002-139
(A) Name
(B) Title
(C) Other Payer
(D)
Gross Salary
Disbursements
(before any
deductions)
(E)
Allowances Disbursed
(F)
Disbursements for Official Business
(G)
Other Disbursements not reported in
(D) through (F)
(H)
TOTAL
A
B
C
Smith
,
Pamela
Bookkeeper None
$13,000
$0
$0
$0
$13,000
I
Schedule 15
Representational Activities
5
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
85
%
Schedule 19
Administration
10
%
TOTALS RECEIVED
BY EMPLOYEES MAKING $10,000 OR LESS
$2,290
$0
$0
$0
$2,290
I
Schedule 15
Representational Activities
21
%
Schedule 16
Political Activities and Lobbying
0
%
Schedule 17
Contributions
0
%
Schedule 18
General Overhead
79
%
Schedule 19
Administration
0
%
Total
Employee Disbursements
$15,290
$0
$0
$0
$15,290
Less
Deductions
$3,330
Net Disbursements
$11,960
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 13 -
MEMBERSHIP STATUS
FILE NUMBER:
002-139
Category of Membership
(A)
Number
(B)
Voting Eligibility
(C)
Members
(Total of all lines above)
686
Agency Fee Payers*
11
Total Members/Fee Payers
697
*Agency Fee Payers are
not considered members of the labor organization.
Active Members
633
Yes
Dues Cash Members
3
Yes
New Applicant
40
Yes
Officer
1
Yes
Steward
9
Yes
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
DETAILED SUMMARY PAGE
- SCHEDULES 14 THROUGH 19
FILE NUMBER:
002-139
SCHEDULE 14 OTHER RECEIPTS
1. Named Payer
Itemized Receipts
$0
2. Named Payer
Non-itemized Receipts
$0
3. All Other Receipts
$48
4. Total
Receipts
$48
SCHEDULE 17 CONTRIBUTIONS,
GIFTS & GRANTS
1. Named Payee
Itemized Disbursements
$0
2. Named Payee
Non-itemized Disbursements
$0
3. To Officers
$1,263
4. To Employees
$0
5. All Other
Disbursements
$3,126
6. Total
Disbursements
$4,389
SCHEDULE 15 REPRESENTATIONAL
ACTIVITIES
1. Named Payee
Itemized Disbursements
$12,057
2. Named Payee
Non-itemized Disbursements
$28,000
3. To Officers
$88,974
4. To Employees
$1,131
5. All Other
Disbursements
$7,683
6. Total
Disbursements
$137,845
SCHEDULE 18 GENERAL OVERHEAD
1. Named Payee
Itemized Disbursements
$0
2. Named Payee
Non-itemized Disbursements
$9,000
3. To Officers
$2,526
4. To Employees
$12,859
5. All Other
Disbursements
$25,846
6. Total
Disbursements
$50,231
SCHEDULE 16 POLITICAL
ACTIVITIES AND LOBBYING
1. Named Payee
Itemized Disbursements
$0
2. Named Payee
Non-itemized Disbursements
$0
3. To Officers
$2,526
4. To Employees
$0
5. All Other
Disbursements
$45
6. Total
Disbursements
$2,571
SCHEDULE 19 UNION
ADMINISTRATION
1. Named Payee
Itemized Disbursements
$0
2. Named Payee
Non-itemized Disbursements
$0
3. To Officers
$42,569
4. To Employees
$1,300
5. All Other
Disbursements
$1,676
6. Total
Disbursements
$45,545
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 14 - OTHER
RECEIPTS
FILE NUMBER:
002-139
Name and Address
(A)
-1
Type or Classification
(B)
Purpose
(C)
Date
(D)
Amount
(E)
Total
Itemized Transactions with this Payee/Payer
Total
Non-Itemized Transactions with this Payee/Payer
Total of All Transactions with this
Payee/Payer for This Schedule
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 15 -
REPRESENTATIONAL ACTIVITIES
FILE NUMBER:
002-139
Name and Address
(A)
DeLuca Ricciuti & Konieczka
225 Ross Street, 4th Floor Pittsburgh PA 15219
Type or Classification
(B)
L
Purpose
(C)
Date
(D)
Amount
(E)
Total
Itemized Transactions with this Payee/Payer
$12,057
Total
Non-Itemized Transactions with this Payee/Payer
$28,000
Total of All Transactions with this
Payee/Payer for This Schedule
$40,057
Legal Fees
07/17/2020
$6,289
Legal Fees
08/14/2020
$5,768
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 16 -
POLITICAL ACTIVITIES AND LOBBYING
FILE NUMBER
002-139
Name and Address
(A)
-1
Type or Classification
(B)
Purpose
(C)
Date
(D)
Amount
(E)
Total
Itemized Transactions with this Payee/Payer
Total
Non-Itemized Transactions with this Payee/Payer
Total of All Transactions with this
Payee/Payer for This Schedule
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 17 -
CONTRIBUTIONS, GIFTS & GRANTS
FILE NUMBER:
002-139
Name and Address
(A)
-1
Type or Classification
(B)
Purpose
(C)
Date
(D)
Amount
(E)
Total
Itemized Transactions with this Payee/Payer
Total
Non-Itemized Transactions with this Payee/Payer
Total of All Transactions with this
Payee/Payer for This Schedule
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 18 - GENERAL
OVERHEAD
FILE NUMBER:
002-139
Name and Address
(A)
Albanese Sinchar Smith & Co.
12875 Route 30 North Huntingdon PA 15642
Type or Classification
(B)
Accounting and Auditing Fees
Purpose
(C)
Date
(D)
Amount
(E)
Total
Itemized Transactions with this Payee/Payer
Total
Non-Itemized Transactions with this Payee/Payer
$9,000
Total of All Transactions with this
Payee/Payer for This Schedule
$9,000
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 19 - UNION
ADMINISTRATION
FILE NUMBER:
002-139
Name and Address
(A)
-1
Type or Classification
(B)
Purpose
(C)
Date
(D)
Amount
(E)
Total
Itemized Transactions with this Payee/Payer
Total
Non-Itemized Transactions with this Payee/Payer
Total of All Transactions with this
Payee/Payer for This Schedule
$0
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
SCHEDULE 20 -
BENEFITS
FILE NUMBER:
002-139
Description
(A)
To Whom Paid
(B)
Amount
(C)
Total of all
lines above (Total will be automatically entered in Item
55.)
$40,984
Pension
Pension Fund
$29,721
Health and Welfare
Welfare Fund
$11,263
Form LM-2 (Revised 2010); (Tech. Rev. 2/2013)
69. ADDITIONAL
INFORMATION SUMMARY
FILE NUMBER:
002-139
Question 10: Western Pennsylvania Teamsters & Employers Pension Fund, 900 Parish Street, Suite 101, Pittsburgh, PA 15220
Retirement and death benefits for certain members of Teamsters Local Union No. 538
EIN 25-6029946
Plan 001 Files Form 5500
Teamsters #261 & Employer Welfare Fund, 351 Northgate Circle, Suite B, New Castle, PA 16105
Health and Welfare benefits for members of Local Union No. 538
EIN 25-6029946
Files Form 5500
Teamsters Industry Welfare Fund, 3025 Washington Road, McMurray, PA 15317
Welfare Benefits
EIN 25-6035910
Files Form 5500
Teamsters Construction Industry and Miscellaneous Pension Fund, 3025 Washington Road, McMurray, PA 15317
Pension Benefits
EIN 25-6135580
Files Form 5500
Western PA Construction Industry Welfare Fund, 2270 Noblestown Road, Pittsburgh, PA 15205
Welfare benefits for members of Local Union No. 538
WP-32378
Files Form 5500
Western PA Construction Industry Advancement Program Fund, 2270 Noblestown Road, Pittsburgh, PA 15205
For promotion of safety and prevention of accidents, apprentice and training program and research in the heavy construction industry
Files Form 5500
Question 12: Audit performed by Albanese Sinchar Smith & Co. Independent Auditors
Question 17: The Local Union contributes along with many other employers to Western Pennsylvania Teamsters and Employers Pension Plan, a multiemployer plan. The passage of the Multiemployer Pension Plan Amendments Act of 1980 may, under certain circumstances cause the Local Union to become subject to a liability in excess of contributions made to the Plan.
Generally, the liability is contingent upon a participating employers termination, withdrawal, or partial withdrawal from the Plan. Although the Local Union has expressed no intent to terminate, withdraw, or partially withdraw from the Plan, under the Act, in the event of such discontinuance, the liability would be based upon the Local Unions proportional share of the Plans unfunded vested benefits. Information obtained from the Plans actuary in this regard indicates that the amount of unfunded vested benefits allocable to the Local Union is $593,550 at December 31, 2018. This amount has been calculated for active participating employers withdrawing in the Plan/calendar year 2019 before application of the de minimis reduction. This is the most recent calculation of the liability. The maximum de minimis deduction for any withdrawing employer is currently $50,000; however, this deduction is not available to employers whose allocated portion of the unfunded vested benefits is $150,000 or greater.