IATSE_3rd2017_web

for the 2016 work period contributions.
At the end of 2016, there were thirty-four
participating Locals in the Vacation Fund.
The IATSE National Health and
Welfare Fund has seen sizable growth.
At the last Convention, I reported that
19,354 participants and their families were
covered under the National Health and
Welfare Fund at the end of 2012. As a result
of continued efforts, including but not
limited to, organizing new members, Plan
improvements, Plan mergers, and managing
benefit costs, the Fund now covers
26,272 participants. Including covered
family members, there are now 42,876 lives
receiving essential health coverage. This
represents a 35.7 percent growth in participation.
The Fund has been able to maintain—and
in many instances—improve,
our coverage offerings. The Plans offer
comprehensive packages including hospital,
medical, prescription, dental, vision,
hearing, short-term disability and death
benefits. Net assets at the end of 2016 were
$387,684,969. At the end of 2016, there
were 193 participating locals in the Plan.
The following describes the current
status of the IATSE Staff Retirement
Fund. Assets of the Fund are currently accumulated
through contributions from
the International on behalf of its employees.
These contributions are invested
in stocks, fixed income securities and
certain alternative investments. Net assets
at the end of 2016 were $33,547,676. As
of December 31, 2016, there were 127
active participants in the Fund, 52 retirees
receiving a monthly benefit and 14
beneficiaries receiving a monthly benefit.
The average monthly gross retirement
benefits paid to retirees and beneficiaries
during 2016 was $143,620.
The Trustees are requesting approval
of two changes to the rules of the Staff
Retirement Fund. Both changes have
been costed out by the Fund’s actuary,
and after careful consideration, the Trustees
have determined that they are affordable.
Based on the actuaries’ projections,
adoption of these two changes would not
require an increase in the amount that the
International is currently contributing to
the Fund.
The first is to increase the maximum
number of years counted for Fund benefits
from 20 to 25 in recognition of the
changing work patterns of employees of
the International. In the past, employees
commonly began work for the International
later in their career and therefore
were not likely to hit the maximum. Now,
however, the International has a number
of employees who have already reached
the 20-year maximum under the Fund’s
rules but whom the International wishes
to retain. Increasing the maximum to 25
years would assist the International in
retaining these employees. This change
would also cause the Fund to match the
terms of the IATSE National Pension
Fund, which currently has a 25-year
maximum. The Trustees recommend an
increase in the Staff Retirement Fund
maximum to 25 years, effective for active
employees who retire on or after August
1, 2017.
The second is to lower the earnings
threshold to earn a year of service from
$10,000 to $5,000. This earnings threshold
is still significantly above the $1,250
earnings threshold that was in effect until
it was raised to $10,000 on April 1, 2007.
After review, the Trustees have determined
that the $10,000 threshold is excluding
certain employees who were not
intended to be excluded from the Plan.
Therefore, the Trustees are requesting
that the $10,000 be reduced to $5,000 effective
retroactive April 1, 2007 for active
employees who retire on or after August 1,
2017. The Delegates are asked to approve
these two changes to the Staff Retirement
Fund.
Canadian Benefit Plans
Two efforts that have consumed a tremendous
amount of time and resources
in recent years have been the growth of
the Canadian Entertainment Industry
Retirement Plan (CEIRP) and the IATSE
Canadian Health Plan. The creation of
each these plans was founded upon the
same principles. They allow local autonomy
for certain decisions affecting
members, but also draw together the purchasing
power of 20,000 members which
will provide greater efficiencies and
savings to be passed on to our members.
Established in 2005, CEIRP has grown to
over 20,000 participating members with
assets in excess of $400 million. The Plan
has consistently outperformed industry
benchmarks for rates of return, due
partly to the greatly reduced management
fees our members pay. These fees
are remarkably affordable in comparison
to standard fees charged in the industry.
This translates to more retirement savings
for our members.
The IATSE Canadian Health Plan
was created in July of 2011 and, like the
retirement plan, functions on the principle
of Locals maintaining the authority
to determine eligibility requirements
and the selection of benefits, but then
draws together their combined purchasing
power to reduce fees and expenses.
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