TWO PENSION PLAN PROBLEM

ISSUE:
Although we have a merged Union, we have two separate pension plans – a SAG Pension Plan and an AFTRA Retirement Fund. Performers’ earnings are divided between the two pension plans. Even though we think we earned enough, we still might not qualify for a pension credit.

WHY IS THIS AN ISSUE?

• Members work under both SAG and AFTRA contracts.

• But our earnings to qualify for Pension Credits are split between the two separate pension plans.

• We’ve made enough in total, but performers are constantly at risk of not earning enough to receive either a SAG or an AFTRA Pension Credit. We must accumulate pension credits throughout our careers to qualify for pension benefits. Cheating members out of a yearly pension credit could have a devastating financial effect on our members later in life.

Below is an example of how a performer would be unable to qualify for a pension credit in either Plan despite substantial earnings.

• $20,000 is required to earn 1 annual SAG pension credit

• $15,000 is required to earn 1 annual AFTRA pension credit

• A member can earn up to $34,998 and earn zero pension credits in either Plan.

In other words, in a certain year you can earn $19,999 in SAG work, and $14,999 in AFTRA work and still not qualify for either pension plan.

WHAT IS OUR SOLUTION?
The current SAG Pension Plan trustees and AFTRA Retirement Fund trustees have had a decade to find a solution to this problem. MembershipFirst understands the profound importance of this two-pension plan issue and will push to find new trustees to finally fix this broken system.

*There's more to this. Having our earnings split between 2 pension plans is bad enough. But if you're unfortunate to end up on an AFTRA show... You are penalized even further. The AFTRA Retirement Fund accrues at HALF (1%) compared to the SAG Pension Plan (2%). And the AFTRA early retirement penalty is TWICE that of SAG's. AFTRA has a 60% penalty at 55. SAG's is 30%.