AMPTP proposed to double the IATSE hours needed for pension credits – Deadline

EXCLUSIVE: Before its contractual negotiations with IATSE broke off, AMPTP proposed to make it much more difficult for workers to qualify for pensions by increasing the qualification threshold from 400 hours per year currently to 950. This would prevent hundreds or even thousands of IATSE members. of earning pension credits every year, and is just one of many issues the union says the two sides “stay away from”.

Union sources say management will have to drastically reduce this proposal if a deal is to be reached and a strike avoided.

The union, which is now in the process of seeking leave to strike from its members, had come to the bargaining table to demand “lasting benefits”, but deems unacceptable more than doubling the hours eligible for credit. pension, and is not at all what he had in mind to save the struggling plan. Instead, it seeks higher contribution levels from employers and higher wages on which those contributions are paid.

The pension plan, which is part of the film industry’s pension and health plans, has for years been approaching “critical” state, defined by federal law as anything below 65%, measured by a plan’s assets divided by its liabilities. . Its current funding level now stands at 68.9%, up from 80.8% in 2015. In 2019, the plan’s actuary predicted that it would be 80% again funded by 2026 and 100%. by 2032, but that was before employer contributions to the plan took a hit because of the pandemic. The fair market value of plan assets at year end was approximately $ 3.8 billion as at December 31, 2018.

On Monday, the Alliance of Film and Television Producers said “the IATSE pension and health plan is expected to run a deficit of $ 400 million over the next three years.” In his proposals to the union, he said that “employers will cover the projected deficit of nearly $ 400 million without requiring premium payments for free health coverage for a single employee and without increasing the extremely low cost of health coverage. for dependents, deductibles, co-pays and coinsurance. Without this injection of contributions, the reserve level of the active health plan should drop from 17.5 months at the end of 2020 to 3.1 months at the end of 2024, and the level of reserve of the retiree health plan is expected to decline. from 14.4 months at the end of 2020 to 2.1 months at the end of 2024. The reserves are essential because they have allowed the directors of the health plan to continue to cover thousands of participants during the pandemic at no additional cost.

The AMPTP press release made no mention of proposing a sharp increase in the number of hours worked to be entitled to a pension credit. Asked about it on Tuesday, a management source said that “the threshold for qualifying for a pension is so low that casual workers in the industry may qualify for the pension plan. The producers’ proposal would increase the hours to 950 hours, which comes down to 24 weeks – less than 50% of the year – for someone who works 40 hours a week, or 16 weeks – 30% of the year – for someone who works 60 hours a week. This still recognizes that the nature of the job is self-employment, since you may still qualify for a year of retirement by working less than 50% of the year.

“Currently, to get a qualifying year in the pension plan, a person only needs to work 400 hours. This equates to 10 weeks – 19% of the year – for someone who works a 40 hour work week, or seven weeks – 13% of the year – for someone who works a 60 hour work week. time.

“It is essential to ensure that the pension plan is on a sound financial footing. MPI’s pension plan is only 68.9% funded, and it is important to ensure that pension benefits are paid to those who make a living in the industry, and that it is available for those who have spent their life working in industry and who wish to retire.

“Increasing the number of hours for a retirement year would improve the plan’s funded percentage because it reduces plan liability. It’s important to have context, for some time now there is enough work for those who want to work, so earning enough hours to qualify shouldn’t be a problem.

For IATSE, however, this remains a very big problem.