2018 NET-CODE CONTRACT: VOTE NO!
The way an AFTRA Retirement participant accrues a pension was changed 10 to 15 years ago… From a percentage of EARNINGS to a percentage of the Employer Contribution.
In the last TV/Theatrical Agreement, a new thing happened.
This is where a percentage of a wage increase is moved over from going into the Member’s pocket, to becoming an increased employer contribution. That’s not unusual.
What IS unusual is. . . The increase in the AFTRA Retirement Contribution is now not realized by the individual participant. Their wage increase is invaded to increase the contribution, but the participant doesn't get the Retirement increase. It’s given straight to the Plan.
The SAG Pension Plan accrues differently.
There, the Participant accrues at 2% of earnings.
You can accurately say… Any new SAG Contribution doesn’t go directly to that Member. TRUE. BUT… Comparing apples to apples… SAG’s accrual is 2% of earnings… While AFTRA’s, when all is said and done, is approximately 1% of earnings.
AFTRA’s formula is CLEAR. You accrue at a percentage of the contribution rate. NOT PART of the contribution rate. And that’s what’s being proposed.
In Station (TV/Radio) contracts, where increases in the Contribution Rates are made, THOSE Participants personally benefit from those increases. Those participants will see an increase in their individual benefit.
It is of great concern that AFTRA can’t make it work with how they're currently set up. That they have to invade these new contribution increases.
AFTRA caps ALL earnings at $200,000 per year. Meaning every dollar you earn over $200K annually… you don’t get credit for. SAG caps earnings at $225,000 per EMPLOYER. You could earn $100,000 from 5 different employers and get credit for $500,000 in earnings. ($500,000 times 2% - $10,000 annual benefit at 65) That SAME scenario at AFTRA… $200,000. (1% earnings accrual - $2,000 annual benefit)
AFTRA’s early retirement penalty is TWICE that of SAG’s. 60% at 55. 6% per year early.
AFTRA is getting 43% of ALL Primetime Scripted Dramatic Television.
Yet, it’s being presented to us today, that the Net Code Contribution increase won’t be factored into the participants individual benefit.
A half a percent this year. Another half next year. And another half percent the year after that. A 1.5% increase. (Meaning 1.5% will come out of increased wages.) None of which will go to the Participant.
It is beyond irresponsible for the Union to not be making this perfectly clear.
This is not acceptable.