Webinar on the IAM Receivable Protection Program (RPP) Brian Limperopulos Director, Programs International Association of Movers

RPP Webinar Agenda History and Basics Two Processes: Intervention and Compensation Data and Statistics Tips and Best Practices Case Study: The Eurogroup International Movers Questions and Answers

RPP History RPP established in 2007 IAM Members had to apply to join Only benefit = Unpaid Invoice Compensation US Military and Government Shipments were not covered Invoice Dispute Resolution Process implemented in May of 2011 Any RPP Member could request IAM intervention on any outstanding debt Alleged Debtor List first circulated only to RPP Members at same time RPP made an inclusive IAM Member Benefit for Governing and Core Members on January 1, 2015 US Military and Government Shipments now covered. All Core and Governing Members receive Alleged Debtor List. Unpaid Invoice Compensation payouts increase from $4,000 USD / claim to $20,000 USD / claim

RPP Basics RPP funded by IAM Governing and Core Members Funds collected are directed into the RPP Reserve Fund Unpaid Invoice Compensation and IAM administrative fee paid from RPP Reserve Fund IAM Executive Committee oversees the RPP RPP composed of two separate but connected processes

RPP: Two Separate but Connected Processes IAM Member is Owed Money by Another Member and Reports it to IAM IAM records the debt and assesses it as an... Unpaid Invoice Compensation claim A potential intervention through the Invoice Dispute Resolution Process.

RPP Invoice Dispute Resolution Process (IDRP) How Does It Work?

RPP Invoice Dispute Resolution Process (IDRP) IAM members can request IAM intervention on outstanding invoices owed to them by other IAM members if reported debt is... At least 120 days old At least $3,000 USD Stems from the transport or storage of used HHG / PE or POVs Other conditions apply. See RPP Operating Rules and Regulations for full list

IDRP: If Invoice(s) Meet the Necessary Conditions... IAM will intervene on your company’s behalf up to 3 separate times with the Alleged Debtor. If debt remains unresolved after 3 interventions Company may be expelled from IAM* Company may be added to the Alleged Debtor List.** *As per IAM By-Laws, outstanding debt must be at least $10,000 USD ** IAM Staff has discretion to post a company or not

RPP Alleged Debtor List What is it? IAM Members who fail to resolve their outstanding debt are added to the Alleged Debtor List IAM circulates this list to IAM members each month Alleged Debtor List email also includes: Updates to the RPP Operating Rules and Regulations Reporting on RPP data and statistics Which companies have just joined IAM Which companies are prospective members Which companies have been cancelled as members Which companies are misusing the IAM name or logo

RPP Unpaid Invoice Compensation (UIC) How Does It Work? If an IAM member goes out of business, an IAM Governing or Core Member may be compensated for an unpaid invoice owed to it. If all conditions are met, the claimant will receive reimbursement. The maximum amount per claim your company can receive: $20,000 USD IAM disburses money on approved claims at the end of each fiscal year subject to program thresholds...WHY???

RPP Unpaid Invoice Compensation (UIC) Compensation Limits Necessary to Protect Solvency of RPP Reserve Fund A maximum total annual distribution limit of 50 percent of the available RPP funds 2017 Forecast is just under $200,000 USD A maximum annual compensation limit per claim of $20,000 USD A maximum annual compensation limit per defaulting company of 35% of the maximum total annual distribution limit. In the event that the RPP has reached the maximum total, proportional payments will be made

RPP Unpaid Invoice Compensation (UIC) Compensation Example 2017 maximum total annual distribution limit is set at $100,000 USD IAM approves claims amounting to $110,000 USD in 2017, which exceeds the maximum total annual distribution limit; therefore proportional payments must be made. $100,000 / $110,000 = 90.9% All approved claimed invoices are multiplied by 90.9% to obtain their adjusted compensation payout. IAM Member claim approved for $10,000 USD Adjusted payout = $10,000 USD * 90.9% = $9,090.91

RPP Unpaid Invoice Compensation (UIC) What’s Required? Unpaid invoice must be reported to IAM within 120 days from the date of its issuance! Stems from the transport or storage of used HHG / PE or POVs The IAM Member that the claim was issued against has filed for bankruptcy or has ceased to exist. Key Caveat: A company that ceases to exist as a result of a merger and/or acquisition by another entity is considered still liable for its debt and is not covered under the RPP. Other conditions apply. See RPP Operating Rules and Regulations for full list

RPP Value per Member Value of RPP to IAM Members Amount IAM has reimbursed members through Unpaid Invoice Compensation since the start of 2015 = $274,118.63 USD Amount resolved through the Invoice Dispute Resolution Process since the start of 2015 = $299,089.66 Total value RPP delivered to IAM Members = $573,208.29 USD* Total value RPP delivered per IAM Member = $333.26 USD or $166.26 per year * Valuation does not account for the business intelligence derived from the Alleged Debtor List

Unpaid Invoice Compensation Statistics Statistics Since RPP Became an Inclusive Member Benefit $274,118.63 USD paid out since January 1, 2015!

RPP Tips and Best Practices Make sure you are conducting work on behalf of an IAM Member Report any outstanding invoices older than 60 days to IAM Read the Alleged Debtor List Review and Comment on the Prospective Member List Report debts to rpp@iamovers.org and provide the following documents: Completed Unpaid Invoice Compensation claim form Unpaid Invoices Quotation for services and acceptance of quotation by debtor Written / typed inventory Bill of lading for shipment At least 3 records of correspondence between claimant and delinquent company Confirmation that delinquent company is out of business

RPP Case Study: The EuroGroup International Movers The EuroGroup International Movers General Manager, John Payne

Questions & Answers

THANK YOU! www.IAMovers.org Brian Limperopulos IAM Director, Programs brianl@iamovers.org rpp@iamovers.org www.iamovers.org/rpp