Annual report pursuant to Section 13 and 15(d)

Note 14 - Savings and Multi-employer Pension Plans

v3.19.1
Note 14 - Savings and Multi-employer Pension Plans
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Pension and Other Postretirement Benefits Disclosure [Text Block]
14.
SAVINGS AND MULTI-EMPLOYER PENSION PLANS
 
SEACOR Marine Savings Plan. 
On
January 1, 2016,
the Company's eligible U.S. based employees were transferred from the SEACOR Holdings sponsored defined contribution plan to the "SEACOR Marine
401
(k) Plan," a new Company sponsored defined contribution plan (the "Savings Plan"). Effective upon the
June 1, 2017
Spin-off, the Company discontinued its contribution to the Savings Plan up until
January 1, 2019,
at which time the Company's contribution will be limited to
1.0%
of an employee's wages. The Savings Plan costs for the year ended
December 
31,
2018
and
2017
were
not
material.
 
MNOPF and MNRPF.
Certain of the Company's subsidiaries are participating employers in
two
industry-wide, multi-employer, defined benefit pension funds in the United Kingdom: the U.K Merchant Navy Officers Pension Fund ("MNOPF") and the U.K. Merchant Navy Ratings Pension Fund ("MNRPF"). The Company's participation in the MNOPF and MNRPF began with the acquisition of the Stirling group of companies in
2001
and relates to the current and former employment of certain officers and ratings by the Company and/or Stirling's predecessors from
1978
through today. Both of these plans are in deficit positions and, depending upon the results of future actuarial valuations, it is possible that the plans could experience funding deficits that will require the Company to recognize payroll related operating expenses in the periods invoices are received.
 
Under the direction of a court order, any funding deficit of the MNOPF is to be remedied through funding contributions from all participating current and former employers. Prior to
2015,
the Company was invoiced and expensed
$19.4
million for its allocated share of the then cumulative funding deficits, including portions deemed uncollectible due to the non-existence or liquidation of certain former employers. On
November 7, 2018,
the Company received notice from MNOPF that there was a deficit of
£9.0
million existed but noted that the trustee did
not
propose to collect any additional funds in respect of such deficit. Depending on the results of future valuations, it is possible that the MNOPF will experience further funding deficits requiring the Company to recognize payroll related expenses in the periods the notice is received. As of
December 31, 2018,
the current liability and long-term liability due were
$1.5
million and
$1.9
million, respectively.
 
The cumulative funding deficits of the MNRPF were being recovered by additional annual contributions from current employers that were subject to adjustment following the results of future tri-annual actuarial valuations. In
2015,
the Company was invoiced and expensed
$6.9
million for its share of a funding deficit in the MNRPF. The Company had a repayment plan with the Trustees of the MNRPF for the amount to be repaid in full by
October 30, 2018
and the amounts were settled by that date. On
July 20, 2018,
the Company was notified of additional contributions due and recognized in the
second
quarter of
2018
payroll related expenses of
$1.19
million (
£0.9
million) for its allocated share of the cumulative funding deficit including portions deemed uncollectible due to the non-existence or liquidation of certain former employers. The
first
installments for these additional contributions were invoiced in
September 2018
and paid in
October 2018
and the final installments will be invoiced in
September 2019
for payment in
October 2019.
Depending upon the results of future actuarial valuations it is possible that the plan could experience further funding deficits that will require the Company to recognize payroll related operating expenses for those periods. As of
December 31, 2018,
the current liability was
$0.4
million.
 
Other Plans.
Certain employees participate in other defined contribution plans in various international regions including the United Kingdom and Singapore. During the years ended
December 
31,
2018,
2017
and
2016,
the Company incurred costs of
$0.7
million per annum in the aggregate related to these plans, primarily from employer matching contributions.