PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA 
ACTION ITEM                   Item No.      6g 
Date of Meeting      June 5, 2012 
DATE:    May 30, 2012 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Lisa Hornfeck, Labor Relations Manager 
SUBJECT:  Memorandum of Understanding between the Port of Seattle and the International
Brotherhood of Electrical Workers, Local Union No. 46 representing Electronic
Technicians 
Total Additional Cost to the Port:      $57,867 
Source of Funds:        Airport Development Fund 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to execute a Memorandum of
Understanding (MOU) memorializing the pension rehabilitation plan agreement between the Port
of Seattle and the International Brotherhood of Electrical Workers (IEBW), Local Union No. 46 
representing Electronic Technicians effective upon execution, and retroactive to December 1,
2011, through May 31, 2014.  The total overall additional cost to the Port for the term of this
MOU is $57,867 covering all employees. 
SYNOPSIS: 
This agreement covers forty-nine employees in the Electronic Technicians bargaining unit in the
Aviation Maintenance Shop for the period December 1, 2011, through May 31, 2014. The
group's supplemental pension, the IBEW Pacific Coast Pension Fund, is in critical funding
status. The pensions' funding status is due to the economic downturn and stock market crash in
2008 that led to a reduction in the fund's portfolio of 30% and to reduced funds coming into the
fund while liability has been increasing. The parties were to meet and designate one of three
optional rehabilitation plans, Schedule 1, 2 or the Default Schedule by December 1, 2011.
The Port received late notice of the Rehabilitation Plan, and the parties did not begin negotiating
until January 2012. The parties reached a negotiated agreement to adopt Schedule 2 of the
rehabilitation plan and to share additional costs. Under this agreement, the employees will
receive some reduced benefits and will pay an estimated $64,000. The adoption of Schedule 2
will be retroactive to December 1, 2011. The employees agreed to a thirty cent ($0.30) wage

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 30, 2012 
Page 2 of 3 

deferral to begin June 1, 2012. The total additional estimated cost to the Port for the duration of
the agreement is $57,867. The cost estimate is based on forty-nine current employees and four
additional FTE in 2013. 
BACKGROUND: 
The current Collective Bargaining Agreement between the Port and the Electronic Electricians
represented by Local No. 46, establishes that the Port pay fifty cents ($0.50) into a supplemental
pension, the IBEW Pacific Coast Pension fund, for each hour compensated. The IBEW Pacific
Coast Pension Fund is in critical status because of funding problems. In accordance with The
Pension Protection Act of 2006, the Pension Fund actuary has developed a Rehabilitation Plan 
intended to enable the plan to cease being in critical status by the end of the rehabilitation period 
(April 1, 2023). The rehabilitation plan contains three Rehabilitation Plan Schedules for the
parties to choose the one that fits their needs. The Rehabilitation Plan Update dated August 2011 
is incorporated by reference, and attached. 
The Port is legally responsible to participate in one of the Rehabilitation Plans, or face
withdrawal liability. After review of all options, and through good faith negotiations with the
Union, the parties agreed to adopt Schedule 2, one of the three plans, and share the additional
costs. At the end of the current bargaining agreement the parties may negotiate a different plan or
based on the state of the pension plan and rehabilitation efforts, consider withdrawing. The
additional costs contained in the MOU are only for the duration of this collective bargaining
agreement. Additional costs under the Rehabilitation Plan will be reviewed and negotiated when
the current collective bargaining agreement expires, May 2014. 
PROJECT JUSTIFICATION: 
The Port is legally bound by The Pension Protection Act to participate in a rehabilitation plan or
face withdrawal liability. 
SCOPE OF THE AGREEMENT: 
The Port agrees to pay the increased hourly contribution cost of Schedule 2 beginning December
1, 2011, and then the Port and the Union will share the increased hourly contribution costs on
June 1, 2012. As of June 1, 2012, the Union agrees to an hourly wage deferral of thirty cents
($0.30) to cover the employee portion of the increased hourly pension contribution for the
duration of the MOU. 
FINANCIAL IMPLICATIONS: 
The total overall additional cost to the Port for the duration of the MOU is estimated at $57,867 
covering all employees. The estimated total overall cost to the employees for the duration of the

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 30, 2012 
Page 3 of 3 

MOU is estimated $64,000. This cost is in addition to the Port's cost, estimated $132,351, under
the current collective bargaining agreement during the same time period.
Budget Status and Source of Funds 
The increase in expense will be paid from the Airport Development Fund. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Memorandum of Understanding  between the Port of Seattle and the International
Brotherhood of Electrical Workers, Local Union No. 46 representing Electronic Technicians 
IBEW Pacific Coast Pension Fund Rehabilitation Plan 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.