The administrators of the $449.1 million Longshoremen's STA-ILA Pension Trust and Benefit Fund, Baltimore, may freeze the defined benefit plan and replace it with a defined contribution plan. The idea is in its initial stages, but it is an option being considered to meet the needs of the fund's changing work force, said Stephen M. Byan, co-administrator and secretary.
The defined benefit plan is fully funded and well managed, but the work force is aging and contributions lag benefit payments. Only good investment returns keep the fund growing. Plus, administrators and trustees need to consider what might happen when the union's collectively bargained agreement expires in September 1996. A new agreement could result in smaller contributions from employers.
The median institutional short-term cash manager posted a 5.9% return for the third quarter, compared with 6.13% in the second quarter, results of the Yanni-Bilkey CASH universe show. These managers extended maturities to an average of 50 days in the third quarter, an increase of three days from three months ago. The CASH universe measures nearly 200 institutional cash funds with short-term assets of more than $360 billion.