National Pension Fund: FASB Disclosure Info

Dear Industry Leaders:

When a Contributing Employer prepares financial statements, it may be required to include information on its participation in the National Pension Fund. The information sheet below may assist in this process.

This same information is available on our website at: http://www.smwnpf.org/downloads/forms/2016_FASB_Disclosure.pdf.

If you have any questions, please contact Lori Wood at (lwood@smwnbf.org) or Debbie Elkins (delkins@smwnbf.org) at the Fund Office.

 

2016 FASB Disclosure

Opportunity to become a Statewide Contractor

OSD

Kindly be advised that the Massachusetts Operational Service Division (OSD) has informed the BTEA about Tradespersons Statewide Contracts coming March 1st!  The aim is to provide regional coverage for trade services required by state facilities.  This process will begin by soliciting bidders for the services below (UNSPSC codes in parentheses):

  • Boiler Services (72-15-10)
  • Drain Services (70-17-18)
  • Electrician Services (72-15-15)
  • Fencing (72-15-40)
  • General Contractors (72-11-11)
  • Generator/Turbine Services (72-15-43)
  • Glass/Window/Doors (72-15-24)
  • HVAC/Sheet Metal Services (72-15-12)
  • Painting Services (72-15-13)
  • Plumbing Services (72-15-11)

OSD will be posting this initial Tradespersons Statewide Contract TRD01 bidding opportunity by March 1st in COMMBUYS, the state’s online procurement portal. TRD01 introduces this first wave of Statewide Contract trade categories, with many additional trade categories to be posted in the coming months. Attached is an informational flyer on TRDO1.

Interested in this opportunity? If you are, please follow the steps below so you are notified when the procurement process begins.

  •  If you are new to COMMBUYS:

Interested vendors must take action toward becoming a Statewide Contractor by registering as a vendor in COMMBUYS. Set up a COMMBUYS business profile – free of charge – to be able to receive solicitation notices in your areas of interest; submit quotes; and, if awarded a contract, transact business with the Commonwealth and other public entities. For assistance, download the vendor registration job aid. For businesses that may be eligible to participate in the Small Business Purchasing Program (SBPP), be sure to review the SBPP application job aid.

  • If you are already registered in COMMBUYS:

Ensure that your profile is current and representative of the services you provide in order to receive related notifications. Find guidance to update your vendor profile.

  • To receive updates about the Statewide Contract TRD01 bidding opportunity:

This step is critical to receiving additional information. Interested TRD01 bidders must acknowledge the bid in COMMBUYS to receive future TRD01 email updates from COMMBUYS. Notifications will include the posting of the TRD01 Request for Response (RFR) documents, expected over the next few weeks. To acknowledge the bid, vendors must login to COMMBUYS, navigate to the TRD01 posting (Using the Advanced Search, enter TRD01 in the Bid Description field), and select “Yes” on the Acknowledge Receipt and View Solicitation window.

If you have any questions, please feel free to contact us or the Operational Services Division directly and speak with either the COMMBUYS Help Desk or Contract Manager Betty Fernandez at (617) 720-3133.

Tom Gunning and Roy Ricci Honored

In late October, the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) held their 73rd Annual Convention in Phoenix, Arizona.  Over 30 people from SMACNA-Boston chapter attended the event.

As an affiliate of SMACNA National, SMACNA Boston Executive Director Tom Gunning has been very active in SMACNA National for decades and was honored at the latest convention by being inducted into SMACNA’s College of Fellows.

Tom was one of 6 individuals being inducted to the College this year in a process that requires a nomination from your peers. Tom’s family traveled to Arizona to see him receive the award and was joined onstage by his wife.

gunningssmacna
Pictured above, Tom and his wife Rose with 3 of their children: Grace, Kristen and Brian

 

In addition, Roy Ricci of McCusker-Gill Inc., was honored for his years of service on the SMACNA National Board of Directors.  As well as making an impact nationally, Roy is an active member of SMACNA Boston and the BTEA.

riccismacna
Pictured above, Roy Ricci and outgoing SMACNA president, Guy Gast

 

Please join us in congratulating Tom and Roy and thanking them for their dedicated service to our industry and members both locally and nationally.

Boston Hot Works Safety Program

Local 17 logoSMACNA Logo for Eps

Sheet Metal Workers Local 17 and SMACNA Boston are working with the National Fire Protection Association (NFPA), the Boston Fire Department, the Inspectional Services Division (ISD) and the State Fire Marshall’s office to help certify all workers affiliated in the Sheet Metal Industry in the new required “Hot Works Certification” training.

Local 17 has 9 instructors that received the Hot Works Instructor Certification; Michael Burke, Michael Burns, Paul Daley, Daniel Flynn, Michael Gallant, Brian Harrington, Marc LaMonica, Barry Ryan and William Walsh. With these instructors we believe we will have no problem making sure all Local 17 members are certified in Hot Works.

The J.A.T.C. will pay the $25 certification fee per UNION MEMBER to take the certification. If you choose to send any non-union employee, they must bring a check made payable to “NFPA” for $25. If they do not comply, they will not be allowed to take the class. SMACNA Boston will reimburse Contributing Contractor employees upon proof of payment to the NFPA.

All classes will take place at Local 17 J.A.T.C, 1181 Adams Street, Dorchester, MA.

The class size is limited to 50 participants and classes will be filled first come first serve. Class will be cancelled if less than 10 people are registered.

Register online today at www.lu17jatc.org or complete this Registration Form or call Local 17 J.A.T.C. at 617-298-0850.  Advanced registration is required.

New Energy Codes in Massachusetts

Massachusetts put new energy codes into effect on August 12, 2016 which are mandatory January 1, 2017. In 2017, all building permits and formal documents must comply with the new energy codes.

The new energy code is based on the 2015 International Energy Code Council (IECC). The stretch code is also being updated and is broken into three types:

  • R-use buildings 4 stories or fewer shall comply with an approved energy rating index, such as:
  • Use of Energy Star Homes 3.1 Path; Passive House Institute US Approved software; Other BBRS approved Software or rating standard (RESNET approach
  • Large buildings and high energy buildings must better ASHRAE 90.1 by 10%

There is no standard energy code nationwide, so states use a various codes depending on their local regulations. With this change, Massachusetts will join other states like Vermont and Washington who are notably efficient under the 2015 codes, while California and Florida continue using 2012 codes.

IECC Residential Energy Codes by state
The map above depicts state by state residential energy codes. Massachusetts will switch from blue (IECC 2012) to green (IECC 2015) with these changes.

Map of Commercial Energy Codes by state

Commercial Energy Codes by state

 

New Balance HQ LEED Certified

Boston, or more accurately, Brighton, is home to one of most energy efficient buildings in the world! The 250,000 square foot New Balance HQ on Guest Street is one of only a few LEED Platinum certified buildings in Massachusetts. It was the first building in the US to achieve every possible indoor environmental quality credits.

LEED Platinum certification examines certain areas including: energy efficient design, water use reduction, sustainable site selection and development, responsible materials selection and waste management, and enhanced indoor environmental quality.  New Balance HQ was statistically superior to many other similar buildings.

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  • 26% annual energy cost savings when compared to a code-compliant building.
  • 35% reduction in water consumption of plumbing fixtures when compared to a code-compliant building.
  • 76% waste diversion during construction
  • 86% reduction in site runoff post-development when compared to pre-development.
  • 28% of material used in construction derived from recycled content.
  • 74% of material used in construction derived from a regional source.
  • 100% of wood used in construction was Forest Stewardship Council certified.
  • 30% higher ventilation rate when compared to a code-compliant building.

Based on these statistics it is clear that not only is the ownership devoted to LEED certification, but so were the contractors who achieved it.

Best of all, it was built by many of our SMACNA members!

Tlumacki_newbalanceheadquarters_arts230

PBGC Issues New Pension Merger Rules

PBGC

The Pension Benefit Guaranty Corporation (PBGC) has proposed new rules to govern the merger of troubled multi-employer pension plans.  The PBGC has authority under the Multiemployer Pension Reform Act (MPRA),
to support mergers if it benefits the failing plan without harming the stronger plan. In addition, PBGC can provide funding to promote a merger if it is needed to help plans avoid insolvency. Mergers help reduce administrative costs and increase pension security.

The MPRA was an attempt by Congress to provide PBGC better tools to deal with the growing issue of pension insolvency. The proposed rule is a logical interpretation of the MPRA giving reasonable options to troubled multiemployer pension plans.

The proposed rule provides guidance for requesting help in a merger. PBGC can provide financial assistance, technical assistance, and mediation. Also, the rule provides an informal avenue for multiemployer plan sponsors to explore merger discussions with the PBGC before filing a formal request. Finally, the proposed rule allows plan sponsors to apply for both benefit suspensions under the MPRA and a merger under the statute. The PBGC realizes that pension insolvency is not a zero-sum endeavor stating, “some plans may need both benefit suspensions and a financial assistance merger to become or remain solvent.”

The proposed rule was published in the Federal Register on June 6. The deadline for submitting comments is Aug. 5.

Althlogo_pensionfund_br2ough the proposed rule is a commonsense step to facilitate pension mergers, many are still in precarious positions. The most prominent in the Central States fund whose emergency rescue plan was denied by the Department of the Treasury on May 6, 2016.

The Treasury Department found several issues with the methods Central States used in notifications to participants and in their proposal to cut benefits and reestablish financial stability.  Central States has announced that it will run out of money by 2025. As of the end of last year, the fund showed $16.8 billion in assets and $35 billion in retiree obligations. This is a 48% funding ratio.  That’s bad news because the average funding ratio for PBGC multiemployer plans in the construction industry was 44%.

Most experts believe that government action is the only way Central States will avoid bankruptcy.  However, given the national political scene this is unlikely, instead they are getting creative to cover the costs. For example, many employers have been exiting the plan due to its predicament.  Central States has increase the amount collected in withdrawal liability, the fee an employer pays to exit the plan.  Also Central States offers a Hybrid method where employers pay the withdrawal fee and remain in the plan, but are free from incurring any additional liability.

Report on Disabilities in Sheet Metal Workers

An analysis of permanent work disability among sheet metal workers in the American Journal of Medicine found that Musculoskeletal disorders (e.g. carpal tunnel, tendonitis, etc.) and circulatory disease were leading causes of sheet metal worker disability (47.2% and 13.7% of awards, respectively). Recommended preventative measures include task-specific ergonomic innovations and participatory interventions with sheet metal workers.

Read more about the study here.

Construction Jobs down by 15,000 in May  

The Associated Builders and Contractors reported that the construction industry as a whole lost 15,000 jobs last month. This was according to an analysis of Labor Department figures.

The decline was the largest since December 2013, the Association said.

Anirban Basu, ABC’s chief economist, said, “While the construction industry unemployment rate fell to its lowest level since October 2006, the fact that the unemployment rate has shed 3.5 percentage points in two months while losing 20,000 jobs is indicative of a shrinking labor force. This signals the worsening of the industry-wide skilled labor shortage.”

The losses come after April’s employment figures were revised from 1,000 new jobs to a 5,000-job decline for the month. This is the first time the construction industry has lost jobs two months in a row since 2012, ABC said.

The industry has long been aware of the need to recruit young talent to the workforce.

Although these reports are undoubtedly a sign that retirement rates for older employees are increasing. There is also a hope that they could be a result of the mild winter which allowed the industry to clear the project backlog. As new projects arise and the books fill up for the summer season, these numbers may improve.