Employer Pension Contributions Increased from 7% to 8% of Compensation, with the Additional 1% Allocated to the Basic Plan Effective July 1, 2020
As a result the new three-year collective bargaining agreement negotiated between the Directors Guild of America, the Alliance of Motion Picture and Television Producers and the Networks (ABC, CBS and NBC), pension contributions for signatories covered under the Basic, FLTTA and the Networks’ Collective Bargaining Agreements have been increased by 1%, effective July 1, 2020. This increase brings the Pension Plans’ employer contribution rate to 8% of compensation.
This new 1% contribution increase has been allocated entirely to the Basic Plan. The increased Employer contributions will further support funding of the Basic Plan and better position the Plan to continue paying promised benefits.
The allocation of the new 8% employer pension contribution rate between the Basic and Supplemental Plans changed to the following, effective July 1, 2020:
- 5.8% of the first $150,000 in compensation to the Basic Plan (previously 4.8%)
- 2.2% of the first $150,000 in compensation to the Supplemental Plan (no change)
- 8.0% of compensation in excess of $150,000 to the Supplemental Plan (previously 7.0%)
The new collective bargaining agreement also grants the DGA the right to allocate up to 0.5% of negotiated salary increases in the second and third years of the Agreement to either the Pension Plans or the Health Plan, providing additional support to the plans and the flexibility to direct those resources as needed. For more information on these changes, refer to the March 2020 Pension Plans Summary Plan Description and its updates available at www.dgaplans.org/forms/pension.
