The IAP: the ( kind of ) 401(k) match you didn't think you had...

Have you heard about the Individual Account Plan (IAP)? Know what it is? A bunch of artists I saw at Nickelodeon today didn't know - so I write this post about a pretty cool benefit for Animation Guild members...



If you're an Animation Guild member, you are covered by our contract. You have access to a 401(k) plan AND a pension. Yet there's more - another account, where every year based on the hours you work, your employers pay into a fund that is waiting for you when you retire. It's called the Individual Account Plan, or IAP for short. Here's the plan book - see page 2. "...completely Employer funded."

The IAP is the third component of the retirement benefits provided to you under the contract ( and that's not counting retiree health care which I'll save for another post ). This benefit vests after just 400 hours worked in one year, much faster than the pension.

This benefit is so unbelievable many members don't think it's real. But it is real - you can ask Daniel Lay. For about two years working under a Guild contract, it looks like he accumulated an IAP balance of about $17,000.

Now, it takes much more than 400 hours worked to accumulate $17,000 in the IAP. My personal experience has been that about 2000 hours of work per year has meant a $4000-$6000 annual contribution by my employer to my IAP. Is it 401(k) matching? No, it's not.

But it sure is a nice benefit provided by our contract. Tell a friend.