The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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Hoffa: Sufficient ReSt Key to tRucK DRiveR Safety The Teamsters Union has called for a renewed commitment by Congress to protect the driving public by keeping current hours of service rules in place to help prevent tragedies that are the result of driver fatigue. Actor and comedian Tracy Morgan has filed a lawsuit against Walmart, ac- cusing the company of negligence and reckless conduct. The Walmart truck driver involved in the crash had report- edly been behind the wheel despite not resting for 24 hours straight at the time of the wreck. "More than 600,000 of our 1.4 million Teamster members turn a key to a truck for a living. The highways and byways are their office," said Teamsters General President Jim Hoffa. "Naturally, highway safety is important to our union. Every one of our members understands that we must have hours of service rules in place that prevent driver fatigue. A tired driver is a dangerous driver." The Teamsters Union pointed out in a release that more than 4,000 lives are claimed each year on highways in ac- cidents involving trailer trucks and the fatal accident last June is the ninth for Walmart's trucking fleet in the last 24 months. GRay, GRay & GRay oilHeat inDuStRy SuRvey ReSultS PubliSHeD Gray, Gray & Gray, LLP Certified Public Accountants, Westwood, Mass., has re- leased the results of the firm's 23rd an- nual Oilheat Industry Survey. The survey was distributed to retail fuel oil and pro- pane dealers throughout the Northeast and Mid-Atlantic regions of the U.S. "This year's survey results reflect the positive effect of a long and cold winter. Oil sales and margins were both up and customer lists are growing at an increas- ing rate. I am thrilled to see this upward trend, but many challenges still face oil and propane dealers and they need to be addressed for companies to remain via- ble," said Joe Ciccarello, CPA, managing partner at Gray, Gray & Gray. Some of the highlights of the 2014 Gray, Gray & Gray Oilheat Survey results in- clude: 48% of respondents report an in- • crease in the number of customers their company serves, up signifi- cantly from the 31% who reported customer growth in 2013. 32% of dealers report losing custom- • ers to gas conversions, continuing a trend of slowing losses to pipeline gas utilities. In 2013, 41% reported losing customers to gas, which was down from a high of 74% reporting customer loss to gas in 2012. Sale of residential heating oil was up • almost 3% over last year, and the av- erage margin was up 3 cents to $0.63 per gallon. Despite all the attention focused on • the potential burdens imposed on businesses by the Patient Protection and Affordable Care Act, 98% of re- spondents say it will not affect them (61% won't change their health care plan, and 37% have fewer than 50 employees and are exempt). Complete oilheat survey results are available on Gray, Gray & Gray's web site at: www.gggcpas.com, or by calling (781) 407-0300. caSH balance RetiRement PlanS GRow 22% wHile 401(K) maRKet RemainS flat Kravitz has released the 2014 National Cash Balance Research Report, showing a 22% increase in new plans for the most recent year. The number of new cash bal- ance plans continues to grow faster than all other sectors of the retirement plan market, including 401(k) plans, which increased just 1% despite continuing economic recovery. There were 9,648 cash balance plans active in 2012 (the most recent year for which complete IRS reporting data is available), up from 7,926 in 2011. This 22% increase was significantly higher than industry projections of 15% growth. Cash balance plans continue rapidly re- placing traditional defined benefit plans. They now make up 25% of all defined benefit plans, up from 2.9% in 2001. Also known as "hybrid" plans, cash balance plans combine the high contri- bution limits of traditional defined ben- efit plans with the flexibility and porta- bility of a 401(k). Key findings from the 2014 National Cash Balance Research Report: Small businesses drive cash balance • growth: 87% of cash balance plans are in place at firms with fewer than 100 employees. Assets approaching $1 trillion: com- • panies contributed $31.2 billion to cash balance plans in the most recent year, for a total of $858 billion in cash balance assets nationwide. Companies more than double con- • tributions to employee retirement savings when adding a cash balance plan: the average employer contribu- tion to staff retirement accounts is 6.3% of pay in companies with both cash balance and 401(k) plans, com- pared with 2.6% of pay in firms with 401(k) alone. Actual rate of return plans gain • popularity: IRS regulations released in 2010 allow many alternatives to traditional safe harbor rates. Many larger cash balance plans are now us- ing 'actual rate of return' to reduce investment risk for the employer. Regional concentration: New York • and California dominate with 23% of all cash balance plans, while the fastest growth is occurring in Texas and Florida. You can download the 2014 Cash Balance Research Report at: http://cash- balancedesign.com/articles/documents/ Na t i o n a l C a s h B a l a n c e Re s e a r c h Re - port2014.pdf cSome 40% of woRKeRS woulD Quit tHeiR JobS if tHey coulD buy comPaRble HealtH inSuRance coveRaGe The Congressional Budget Office esti- mates that, because of the Affordable Care Act, workers may "choose to supply Business OPeRATiOns N e w s 24 auGuSt 2014 | fuel oil newS | www.fueloilnews.com