Wednesday, March 15, 2006
Okay, will everyone who really understands how TAG's pension plans work please raise your hands? Hmmm, that's what I thought -- not too many of you. I know I personally didn't have a clue until I had to help explain them, repeatedly, at new member lunches with Steve. Problem is it's confusing, and it's something most people don't pay attention to because retirement usually seems so far off. So in the next few days I wanted to highlight how our plans work. Notice how I keep using the plural. That's because there are three different plans. Two of them are automatic -- we all get them. Those are the Defined Benefit Plan (DBP) and the Individual Account Plan (IAP). Money flows into both of these pension plans from the first hour you work at a union studio. And to answer some common questions: - no, you don't have to choose. You get both the IAP and the DBP. - yes, even foreign nationals will get the retirement benefits they earn, even if they retire to their home country. - no, nothing is deducted from your paycheck to fund either of these plans. The contributions come from your employer, from residual payments (yes, I said residuals), and money from supplemental markets. The third retirement plan you get through the union is the optional 401(k). Because of the substantial contributions the studios make to the IAP and DBP, the 401(k) does not have an employer match. But it's still a great idea. And all of that is on top of the Social Security benefits you're earning. In the next few days I'll go into a little detail on each of the different pension plans. I know it's not the sexiest topic, but good info to have. Tomorrow . . . the IAP.
Posted by Kevin Koch at 11:16 PM