On Monday, the SAG-AFTRA board approved a four-year contract with major studios, which outlines a plan to merge the union’s two pension funds by January 1, 2028.
The board’s decision, with 89% voting in favor, will now be presented to the membership for a ratification vote.
The merger of the pension funds has been a contentious issue in the past. Although the Screen Actors Guild and the American Federation of Television and Radio Artists merged to form one union in 2012, and their health plans were unified in 2017, their pension systems have remained distinct.
Some SAG pension plan beneficiaries have expressed concerns that combining with AFTRA could weaken the fund.
“This is a bailout,” remarked Peter Antico, who previously ran for secretary-treasurer and has filed a complaint with the Department of Labor. “It is very detrimental to SAG and it bails out AFTRA’s retirement fund.”
Proponents of the merger argue that it benefits members with income from both plans but insufficient earnings to qualify for pension credits under either. By combining these “split earnings” into a single system, more members may qualify for benefits. To implement the merger, studios have agreed to increase the contribution rate to the merged plan by 1%, which union leaders believe will help stabilize its finances.
“The merger will enhance contribution rates and improve benefits for both SAG and AFTRA participants,” the union stated on Monday evening.
Concerns regarding the merger of health and pension funds were a significant reason for opposition when the two unions merged in 2011.
The contract also addresses terms related to artificial intelligence and streaming residuals. It includes an increase in contributions to a union fund created to pay residuals to performers on the most-watched streaming shows. Previously, the fund received 25% of a performer’s base residual, which the new agreement raises to 35%.
Regarding AI, the union did not secure a guarantee of payment to a fund for the use of “synthetic characters” like Tilly Norwood. Instead, they obtained an agreement from studios not to use synthetics unless they add “significant additional value” to the production. Additionally, a new arbitration provision was included to enforce the synthetic AI terms.
The deal also stipulates a 3% increase in most minimum rates for each of the four years covered by the contract.
The union plans to hold webinars for members to review the terms on Tuesday and Wednesday, with more sessions later in the month. Members will receive postcards instructing them on how to vote on the ratification, with the voting deadline set for June 4.
SAG-AFTRA negotiators reached this agreement on May 3 following six weeks of discussions with the Alliance of Motion Picture and Television Producers.
The AMPTP previously reached an agreement with the Writers Guild of America, which was ratified on April 24 with a 90% approval rate. The WGA deal included a substantial bailout of the union’s health fund, which had experienced a $200 million loss over the past four years, along with reductions in health benefits.
On Monday, the Directors Guild of America began negotiations with the AMPTP, which are anticipated to continue through early June.
The AMPTP aims to prevent a recurrence of the 2023 strikes and to establish a more extended period of “labor peace” by securing four-year contracts instead of the usual three-year terms.
