The SAG-AFTRA Board of Directors on Monday approved a four-year agreement with the major studio, which includes a plan to merge the union’s two pension funds on January 1, 2028.
The Council voted 89% in favor of recommending the agreement, which now goes to member states to vote on ratification.
Pension consolidation has been a source of internal conflict in the past. The Screen Actors Guild and the American Federation of Television and Radio Artists merged in 2012, and the health care plans were combined in 2017, but the pension plans remain separate.
Some beneficiaries of the SAG pension plan have warned that the merger with AFTRA will weaken the fund.
“This is a remedy,” said Peter Antico, a former Treasury secretary candidate who has already filed a complaint with the Labor Department about the issue. “This would be extremely detrimental to SAG and would bail out AFTRA’s retirement fund.”
The argument in favor of the merger is that some members have income attributable to both schemes, but not enough to qualify for pension credits in either scheme. These “split incomes” will now be integrated into one system, and people who were previously ineligible for benefits will now be eligible for benefits. To put the deal into effect, both studios have agreed to increase their contributions to the combined plan by 1%, which union leaders say will stabilize their finances.
“The merger will increase contribution rates and improve benefits for both SAG and AFTRA participants,” the union said in a statement Monday night.
Concerns about the impact of merging health and pension funds were a major factor in opposition to the merger of the two unions in 2011.
The agreement also includes terms regarding artificial intelligence and streaming residuals. The deal includes increased contributions to a union fund established to pay balances to performers on the most-watched streaming shows. Under the existing contract, the fund gets 25% of the performer’s base balance. The new agreement increases this figure to 35%.
When it came to AI, unions couldn’t get guarantees of payments into union funds if studios hired “synthetic characters” like Tilly Norwood. In exchange, the union forced studios to agree not to use synthetic substances unless they brought “significant added value” to the production. The union also won a new arbitration clause to enforce the terms of the artificial AI contract.
The agreement also includes a 3% increase in most minimum rates for every four years of the agreement.
The union plans to hold webinars explaining the terms to members on Tuesday and Wednesday, and later in the month. Members will receive a postcard in the mail with instructions on how to vote for ratification. Voting closes on June 4th.
SAG-AFTRA negotiators reached the agreement on May 3 after six weeks of negotiations with the Alliance of Motion Picture and Television Producers.
AMPTP previously reached an agreement with the Writers Guild of America, which was ratified with a 90% vote on April 24th. The WGA agreement included a significant bailout of the union’s health fund, which has lost $200 million over the past four years, and cuts to health benefits.
The Motion Picture Directors Guild of America met with AMPTP on Monday to begin a round of negotiations expected to last until early June.
AMPTP was keen to avoid a repeat strike in 2023 and forge a longer-term “labor peace” by securing a four-year contract instead of the traditional three-year contract.
