Pension Plan Reform

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Since 2012 the SAG-Producers Pension plan and the AFTRA Retirement Fund have seen significant declines in their funding percentages.  The SAG Producers Pension Plan is current funded at 74.9% and the AFTRA Retirement Fund sits at 78.1% according to the annual funding report released in March of 2021.  Similar to the health plan, both pension plans have been in a funding downfall.  The only reason both plans are still classified in the "green zone" is because the zone has been adjusted to cover lower funding percentages. 

One of the biggest problems with both plans is the split-earnings dilemma that members endure when working under various contracts.  Under the current qualifying guidelines for each plan, a member could earn just under $35,000 a year and still NOT qualify for a pension credit on either plan due to split-earnings.  The SAG Producers Pension Plan requires a minimum of $20,00 to earn an annual pension credit and the AFTRA Retirement Fund has a $15,000 annual threshold.  
Every year members lose significant amounts of contributions from session fees and residuals, that if consolidated towards one plan would allow them to earn annual pension credits and become vested in a more efficient manner.  Split earnings also creates an undesirable situation for the plans where they lose valuable subsidy contributions. 
Due to ERISA laws and government regulations, the plans can NOT be merged.  But there are other options that we can pursue to improve the pension situation for all SAG-AFTRA members.   

One of those options is the "Freedom of Choice Pension Resolution". 

 

The Freedom of Choice Pension Resolution would: 

1. Allow members to choose what plan their contributions will go to in the future.  Ideally starting in 2022, but realistically in 2023. 

   1. Distribution of residuals payments will depend on the flow of the contributions. If contributions go directly to SAG-AFTRA, or if payroll companies can easily assign funds to the members plain of choice, then residuals can also be applied to the preferred plan of choice.

2. Give members the option of consolidating their earnings into one plan or contributing to both plans when it is financially feasible.  

3. Allow contributions to be made to both plans based on a fixed amount of earnings, a percentage of total earning, or on a project-by-project basis.  This can be done at the member's discretion, as opposed the current process that dictates contributions based on negotiations or content format.  

   • The Project-by-Project option will allow performers to pick and choose what plan is best for them at a given time, and the production company and/or payroll house can make the contributions accordingly. 

   • Fixed amount contributions would allow members to direct contributions into one plan first, then the second plan once they surpass the initial qualifying contribution threshold. 

4. Allow members to move freely between employment platforms under SAG-AFTRA contracts & work in various fields free from the burdens of split earnings. 

5. Simplify and streamline future contract negotiations by eliminating the issues cause by split earnings and unify wages amounts where current differences exist under SAG and AFTRA contracts.  

6. Offer new members the option of choosing what plan they wish to enroll in, or they can be assigned to a plan upon joining SAG-AFTRA, based on their membership category and what plans each category has historically made contributions to.