NOTE J-POST-RETIREMENT BENEFITS
Effective January 1, 1992, the Union adopted Statement of
Financial Accounting Standards No. 106 for accounting for
post-retirement benefit obligations.

The International Union provides for post-retirement health
and life insurance benefits for those employees retiring after
meeting the requirements of a normal pension or becoming dis
abled and receiving a disability pension. Spouses and dependent
children of these retirees are also eligible to participate. In addi
tion, certain spouses and dependent children of deceased active
employees are eligible to participate in the plans.

The following table sets forth the Plan's combined funded status reconciled with the amount shown in the International Union's statement of financial posicion at December 31:

1924

obligation was 8% and 7.25% in 1994 and 1993, respectively. The effect of a 1% increase in the assumed health care cost trend rate on the various components and the accumulated postretirement benefit obligation is as follows

-1993

(13,702,900) 46,302,800) 2301.200 (28,394,5000

$ (15,623,000)

(7314,600

411.78.400 (34,998,000

(28,396,900)

(34,596,000)

Union in accor

andards No. 106.

NOTEK-LOANS PAYABLE

The International Union received three $5,000,000 loans in
April 1994, each with an interest rate of 6.5%. Interest is
payable
monthly beginning June 1, 1994. Monthly principal
and interest installments of
1999. Th
of $102,192 are due beginning Septem
loans are collateralized
ber 1, 1994 through May 1, 19
by the International Union's current and future accounts receiv

able. The of these loans were transferred to the defense

fund to p e benefits after the fund was depleted (Note C). Annual maturities of loans payable for the five years following December 31, 1994 are as follows:

NOTE G-THE TEAMSTER AFFILIATES PENSION FUND

рала

1221410

2,952,080

$

The service cost is the actuarial present value of the expected
Post-retirement benefit obligation attributed to employee service
during the period. The interest cost is e increase in the past ser
vice obligation cost during the period

The seemed hench care cost trend rase used to measure the
expected con of benefics covered by the plan was 12.5% and
future years is a reduction in the cate
13% in 1994 and 1993, respectively. The assumed trend for
5% each year until the
ultimate rate of 6% is reached. The
discount
rate used in determining the accum
benefit

Interest expense for the year ended December 31, 1994 was $455,517.

On September 28, 1994, $1,500,000 of principal on one
loan was forgiven, and interest payments on the outstanding
balance of that loan through August 31, 1995 were also waived

NOTE L-AREA CONFERENCES
Effective June 9, 1994, the General Executive Board of the Inter-
national Union revoked the charters of the four U.S. Area Con-
ferences. According to Article X, Section 13 of the IBT Consti
tution, the net assets of the Conferences will be held by the IBT
until such time as t
time as the Conferences may be reinstated or reorga
nized. In the event no reinstatement or reorganization occurs
within a period of two years, such net assets shall be transferred
to the International Union's General Fund. At this time, Confer
ence matters and the determination of net assets are not com
plete. However, at least until the two-year holding period
expires in June 1996, there is no effect on the fund balance of the
International Brotherhood of Teamsters.