Because we've been answering questions about the IA TAG Pensions (and remember we've got three of them: the Defined Benefit Plan, the Individual Account Plan, and the TAG 401(k) Plan*), and because the question: "What do I get after fifteen years?" has been asked, let's do a little mind exercise.
What might you expect in Animation Guild pension bennies after, say, fifteen years? ...
(We're assuming here that you A) work fifty weeks a year for fifteen years, and B) the current structures and percentages of the DFP, the IAP and the 401(k) Plan remain in place.)
In the Defined Benefit Plan, working 2000 credited hours for ten years at the benefit rate of $ 0.0295 per hour, and then working an additional five years at the increased accrual rate of $0.0393 with the same number of credited hours (2000), you would end the decade and a half with a monthly annuity of $983.00 .
In the Individual Account Plan, it gets a tad trickier, because we have to make assumptions that may be low or could be high. But for our mind exercise, we assume the following: A $1600/week minimum contract rate, a 5% annual investment return (which leans conservative), and a 2% annual minimum wage increase (in line with most current bump-ups). We further assume that the employer contribution into the IAP of 6% of an employee's minimum rate (plus 30.4 cents for each hour worked) will be the same over the next decade and a half.
So. Plugging in all those percentages and numbers, and doing the calculations, we start with $5,420 the first year, and end with $136,199.19 at the end of year fifteen.
Not too shabby. (And please note that these two plans are automatic ... and paid for by contributions from the employer.)
Now, the third leg of the TAG Pension Suite, the optional TAG 401(k) Plan, is a no-match Plan (similar to 30% of the 401(k) Plans in the U.S. of A.), funded by employees' deducted, pre-tax wages.
For the 401(k) calculations, we assume a $16,500 annual employee contribution and a 5% rate of return, compounded. Plugging in those numbers, we get: $16,500 at the end of the first year, and $353,009.00 at the end of the fifteenth. ($247,000 of which would have been put in by the employee.)
Your grand total of pension benefits after fifteen years of creative labor? A $983 monthly annuity and $489,208.19 lump-sum accumulation.
Could be worse.
* The Motion Picture Industry Defined Benefit Plan provides you with a monthly check on retirement; the Motion Picture Industry Individual Account Plan gives you a lump sum accumulation (both paid by the employer); the TAG 401(k) Plan gives you a lump-sum accumulation from your deducted wages.
Anmation Guild TAG 401(k) Enrollment Meetings
Disney TVA -- Sonora Building -- Tues., May 18th, 2 p.m., Rm 1173
Disney Toons -- Sonora Building -- Tues. May 18th, 3 p.m. Rm. 2025
Disney Feature -- Southside Building -- Thurs. May 20th, 10 a.m., Rm 1300
Nickelodeon -- Wed. May 26th, 1 p.m., Main Conf. Rm.
Fox TV Animation -- Thurs. May 27th, 2 p.m., Main Conf. Rm.