Pension Plan Information
For purposes of clarity, the Plans' provisions have been summarized. We emphasize that nothing in this explanation is intended to change the provisions of the Plans and that only the Board of Trustees is authorized to interpret the Plans. In the event any question is raised, the rights of Plan participants will be determined in accordance with applicable Plans language and by the rules and regulations adopted by the Board of Trustees in the course of the administration of the Plans. The Board of Trustees reserves the right to interpret, alter or amend the Plans. Updated copies of the full Plans documents are available to Plan participants and beneficiaries from the Plans Office.
For more information, please refer to the January 1, 2001 Pension Plans booklet and updates.
The DGA-Producer Pension Plans
There are two pension plans: the Basic Pension Plan and the Supplemental Pension Plan. The Basic Plan is the type of plan known as a Defined Benefit Plan. The Supplemental Plan is the type of plan known as a Defined Contribution Plan.
The Basic Plan
How and when am I eligible for benefits?
To qualify for benefits, you must be vested. There are two ways to become vested.
- A participant is vested if he or she has accrued at least 120 Credited Service Months (CSMs). Beginning January 1, 2007, you accrue the maximum of 12 CSMs in a calendar year in which you earn at least $32,400 in DGA Covered Employment (or 1 CSM for each $2,700); this amount is indexed annually. For example, if you earn $33,000 in a calendar year you accrue 12 CSMs; if you earn $6,000 you accrue 2 CSMs. (In 2006, the earnings requirement was $31,200 for 12 CSMs. In 2005, the earnings requirement was $30,000 for 12 CSMs. Between 2003 and 2004 the earnings requirement was $28,800 for 12 CSMs. Between 1994 and 2002 the earnings requirement was $21,600 for 12 CSMs. Prior to 1994, the earnings requirement was $9,090.96 for 12 CSMs.) Once you have 120 CSMs, you are considered vested and are eligible for retirement benefits. Benefits are payable at age 65, but reduced amounts can be paid as early as age 55.
- A participant may, under certain circumstances, become vested with as few as five years of employment. Generally, you become vested under the "Five-Year Vesting" rules if you have sufficient earnings to generate 12 CSMs in each of five years without having more than four years between each working year. You must also have sufficient DGA Covered Earnings in 1999 or later years to qualify for vesting under the five-year rules. Retirement benefits for participants who are 5-year vested are payable at age 65.
How Much Will I Get?
The Basic Plan is designed to pay you a monthly benefit for your lifetime once you retire at age 65.
Your actual benefit depends on:
- your Career Average Earnings (which is based on your salary or earnings in DGA Covered Employment and the number of years that you worked). Career Average Earnings are calculated by taking your Covered Earnings up to $150,000 in each year after 1960 during which at least one CSM was earned, divided by your total CSMs, then multiplied by 12;
- your CSMs earned since 1960;
- your age at retirement; and
- the option or form of payment you elect.
For example, if you worked a total of 13 years (156 CSMs) since 1960 with the following work history:
| Year | Earnings |
| 1978 | $45,000 |
| 1979 | $45,000 |
| 1981 | $45,000 |
| 1983 | $45,000 |
| 1986 | $45,000 |
| 1987 | $70,000 |
| 1990 | $70,000 |
| 1991 | $70,000 |
| 1993 | $70,000 |
| 1995 | $70,000 |
| 1997 | $90,000 |
| 1998 | $90,000 |
| 1999 | $90,000 |
| Total (13 Years) | $845,000 |
$845,000 ÷ 13 = $65,000; $65,000 is your Career Average Earnings
Next, the Plan's benefit formula is applied to your Career Average Earnings to produce your age 65 benefit. Specifically, the benefit formula is:
| Career Average Earnings after December 23, 1960 | Annual Benefit for Each Year of Service Earned After December 26, 1960 |
| $0-$19,999 | 3.6% of Earnings |
| $20,000-$49,999 | $720 plus 2.5% of excess over $20,000 |
| $50,000-$99,999 | $1,470 plus 1.8% of excess over $50,000 |
| $100,000-$150,000 | $2,370 plus 1.2% of excess over $100,000 |
Then, multiply the resulting amount by the number of years of service (CSMs earned since 1960 divided by 12). The resulting annual amount cannot exceed $55,500, or $4,625 per month.
For example, using the above Career Average Earnings of $65,000 and 156 CSMs (13 years), your monthly benefit would be $1,885, calculated as follows:
| Step 1 | $1,470 + $270 (1.8% of $15,000) | = $1,740 | Annual benefit per year of service |
| Step 2 | $1,740 x 13 years of service | = $22,620 | Annual benefit at age 65 |
| Step 3 | $22,620 ÷ 12 | = $1,885 | Monthly benefit at age 65 |
At age 65, the monthly benefit of $1,885 would be payable for your lifetime. If you have at least 120 CSMs, you may choose to receive benefits as early as age 55, but the monthly amount is reduced to account for a longer benefit pay-out period. Under certain circumstances, you may elect to have a reduced benefit payable over your lifetime with benefits continuing for the life of your spouse or other beneficiary. A lump sum option is also available for participants with at least 120 CSMs (at least one of which must have been earned prior to January 1, 1999) retiring at age 60 or older. If you are eligible for the lump sum option, the lump sum portion will be based on the lesser of $3,450 or the amount of your accrued benefit as of December 31, 2002; any excess will be paid as a monthly benefit.
NOTE FOR MEMBERS WHO WERE PARTICIPANTS PRIOR TO JANUARY 1, 1994 If your benefit is greater under the old plan that calculated benefits based on your Credited Service Months without regard to earnings, you will receive the higher amount.
Participants with at least 120 CSMs who become disabled (as defined by the Plan) are entitled to benefits at any age. The Basic Plan also provides benefits for your designated beneficiary if you are vested and die prior to retirement. To change your designated beneficiary, complete and return a Beneficiary Designation Form. Only surviving spouses are eligible for pre-retirement death benefits if you are 5-year vested.
The Supplemental Plan
How does the Supplemental Plan work?
The Supplemental Plan operates much like a savings account or IRA where contributions made on your behalf are deposited into your own individual account.
How and when am I eligible for benefits?
To qualify for benefits, you must have an account balance in your Individual Account. In order to be entitled to your entire account you must either retire on or after age 60, become disabled, or die. If you have not accrued at least 60 CSMs, you may be eligible to withdraw the portion of your account related to your employee contributions and related investment income or loss forfeiting the portion related to your employer contributions and related investment income or loss.
How much will I get?
At retirement you will receive the balance of your Individual Account or you may elect a monthly annuity option. The amount in your Individual Account is invested with the account balances of all other participants. Our independent investment managers invest the funds in a variety of sound vehicles such as stocks, bonds, real estate, certificates of deposit, etc. Each quarter the investment return is calculated and your account is credited with a portion of the investment gains or losses. A gain is not guaranteed over any particular period, but over the 1981 - 2007 period the investment return is nearly 11% per annum.
Retirement application requests should be submitted in writing 60 days prior to your intended distribution date.
This Sounds Great. But Who Pays For All This?
When you work in DGA-Covered Employment, your employer contributes 5.5% of your salary and certain residuals to the Pension Plans, subject to IRS limitations. The allowable contributions are distributed to both the Basic Plan and the Supplemental Plan. 3.3% of your earnings up to $150,000, or a maximum of $4,950 in contributions per year, is contributed to the Basic Plan. The remaining 2.2% of the first $150,000 plus the entire 5.5% of earnings over $150,000 is contributed to the Supplemental Plan and credited to your Individual Account.
The Supplemental Plan also receives contributions directly from you as a Plan participant. 2.5% of your gross earnings is deducted by your employer from your check and submitted with the employer contributions. This amount is credited to your Individual Account.
In accordance with DGA Collective Bargaining Agreements, the Basic Plan also receives contributions that result from the release of films to television and supplemental markets.
It is very important that you check that contributions are being paid into the Plans. The Plans send quarterly statements to each participant who had reported earnings during the quarter. The statement shows the contributions made on your behalf by each of your employers. An annual statement is sent to all participants and shows earnings during recent years, Credited Service Months and retirement benefits you may be entitled to. Look over your quarterly and annual statements! If your records differ from ours, contact the Contribution Department at the Plans Office as soon as possible so that we can pursue collection on your behalf. Non-receipt of contributions can jeopardize your retirement benefits.