The Motion Picture Editors Guild (IATSE Local 700) has warned members that as contributions to the industry’s pension and health plan drop, the union will no longer offer free benefit extensions to the many members who have faced lean employment options in recent months.
Local 700 told members in a memo sent Sept. 4 that as it continues to see reductions in the amount of hourly health plan contributions coming into the Motion Picture Industry Pension & Health Plan, the union currently “cannot consider” further cost-free benefit extensions. It is understood that Local 700 will stop providing COBRA-free premiums and this applies to all MPI plan participants and is not limited to those in an individual guild or union.
In the memo, Local 700 national executive director Cathy Repola explained that the pension and health plan is “continuing to see reductions of more than 20% as compared to 2022. This contraction of work was expected and is precisely why, during this year’s Basic Agreement negotiations, we lowered our assumptions of hours. While we are on target to meet the new assumption, we also must ensure that active and retiree health plans maintain a certain number of monthly reserves.”
Disney, Warner Bros. Discovery, Paramount Global, NBCUniversal and other entertainment giants make regular contributions to the MPI plan based on the total number of hours worked by IATSE members. IATSE announced the ratification of a new three-year Basic Agreement on July 18, which included new streaming residuals to address a $670 million shortfall in the plans.
IATSE faces a tough balancing act of maintaining enough reserves in the pension and health coffers to pay out for the older members who have paid into the system for years. The bill for extending COBRA premium-free benefits to nearly 14,000 participants has to date cost $83 million, according to the memo.
“The Directors cannot let the reserve levels continue to fall, and, therefore, we cannot consider any further types of cost-free benefit extensions, at least not now,” the memo explains. “Our deep desire to continue to help must align with our fiduciary responsibility to the financial security of the plans.”
The measure underscores the dilemma that entertainment workers face following the dual SAG-AFTRA and WGA strikes in 2023 and overall work slowdown. Acknowledging the “extreme hardships so many [workers] are continuing to face due to insufficient employment opportunities,” the memo from the Editors Guild (which with roughly 9,000 members is the second largest of the 13 IATSE Locals that work under the Basic Agreement) explains as background that the directors “have been able to offer premium-free COBRA for many months” and that two more benefit periods are already approved (those beginning Aug. 1 and Sept. 1) “which will incur additional costs.”
The memo includes additional information about assistance, including health plan options and a hardship initiative. It is understood that Individual Account Plan hardship withdrawals are available to all plan participants.
Variety has reached out to IATSE for comment.
Here is the full Local 700 memo:
Dear members,
For those of you fortunate enough to be working, the scale wage increases for the new Basic Agreement and all Local 700 Agreements are effective as of August 4, 2024. The new wage charts have not yet been finalized for the Majors, Independent, and New York Majors, as we identified some discrepancies currently under discussion with the AMPTP. We will keep you apprised as we work to finalize the implementation of these new rates. Please note that any delayed increases in scale will be remedied retroactively.
We are closely monitoring the overall work levels through the hourly contributions being made to the MPIPHP. We are continuing to see reductions of more than 20% as compared to 2022. This contraction of work was expected and is precisely why, during this year’s Basic Agreement negotiations, we lowered our assumptions of hours. While we are on target to meet the new assumption, we also must ensure that active and retiree health plans maintain a certain number of monthly reserves.
I know that some of you are being faced with losing health coverage through the MPI Health Plan. I have a great deal of empathy and concern, but I recognize sentiments aren’t going to be a source of help. I do want you to understand why the MPI Plan Directors have not continued to extend premium-free COBRA at this time. Our deep desire to continue to help must align with our fiduciary responsibility to the financial security of the Plans.
The Directors have been able to offer premium-free COBRA for many months. In total, 13,931 participants and/or their dependents have received assistance through July 31, 2024, with a projected cost of over $83 million. There are still two more benefit periods already approved (benefit periods beginning 8/1 and 9/1), which will incur additional costs.
The Directors cannot let the reserve levels continue to fall, and, therefore, we cannot consider any further types of cost-free benefit extensions, at least not now.
If you are going to or already have run out of health coverage through the MPI Health Plan, the Entertainment Health Insurance Solutions (EHIS), a joint program of MPTF and Entertainment Community Fund, has put together a program to assist industry employees seeking health insurance options. I hope you will find this to be a valuable resource. You can find information about this program here: https://mptf.com/health-insurance/
One hardship initiative that was approved last week was to allow participants to withdraw money from their Individual Account Plans (IAP) for a second time, under certain conditions. I would strongly recommend consulting with a tax consultant before taking this action because there are serious implications attached to doing this. Additional details will be released on September 13th. For more information, visit: www.mpiphp.org.
Every day, we hear from our members about the extreme hardships so many of you are continuing to face due to insufficient employment opportunities. We must continue to come together and support one another and look for ways to help one another.
See some additional resources on the Guild’s website you may find helpful:
In solidarity, Cathy Repola, National Executive Director
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