AFM and Employers’ Pension Fund...
What is it? & How does it work?
By Motter Snell

Recently, musicians have had questions about the AFM Pension plan. This informational piece will answer some questions, but for a complete description and rules, call the local union and request a Plan Summary. Feel free to contact the Local 76-493 office if you have additional questions.

The AFM-EPF started in 1959 and is administered by a Board of Trustees consisting of six AFM union officers and six Employer representatives. The day-to-day fund operations are the responsibility of a Fund Administrator and a staff.

When musicians, represented by the AFM, negotiate a Collective Bargaining Agreement (CBA), they will often negotiate a pension benefit. The employer pays the benefit into the AFM pension, and the musicians that play under that CBA get credit for the amount of pension contributions made in their behalf. AFM collective bargaining agreements with the 5th Avenue Theater, Paramount Theater, Village Theater, ACT, and Seattle Rep include a pension provision.

The fund is "portable". That means all employers who have entered into an AFM collective bargaining agreement and signed a participation agreement will make contributions into your pension account. If you get called to sub or work (have worked or will work) in the Spokane Symphony, Oregon Symphony, Utah Symphony, or the Colorado Springs Orchestra (for example), the employers' contributions will count towards your vesting and your pension will grow.

As with most pension funds you need to get ‘vested’ to qualify for the pension. The vesting criteria varies from fund to fund. Vesting in the AFM fund takes a minimum of five years with contributions based on "covered earnings." It takes 5 credits to get vested and you can earn up to one credit a year. Below is the vesting schedule:

Covered earnings:

$ in a calendar year = Years of Vesting

$1500+ $1125 -$1499 $750-$1124 $375 -$749 Less than $375

1 ¾ ½ ¼ 0

The partial year credit system offers incremental vesting for subs and casual musicians working under an AFM collective bargaining agreement and provides the security of not losing vesting credit even when your covered earning slacks off.

Here are two examples:

Say you work a show for Act Theater. You earn $3000. Because the work is covered by an AFM contract with a pension provision, the employer contributes to your pension, and you earn one vesting credit. ($1500 or more a year = one vesting credit.)

Or, as an example of the minimums you would need to work to get vested; you work as an extra or sub for three show at the Paramount. You would make a minimum of $389.34 (not counting doubles, principal pay, etc.). If $389.34 is the entire amount of your covered earnings in the calendar year, you would have a ¼ vesting credit. As you work, you build up vesting credits.

The minimum to continue accruing vesting credits is $375 in covered earnings within a five-year period. If you go 5 consecutive years without $375 in covered earnings before you are fully vested, you loose your vesting credits and your accruing of vesting credits starts over.

Once you are fully vested your status will not change no matter how long you may be inactive. The earliest you can begin collecting your pension (other than disability) is at age 55. At age 65 it pays out about 50 cents on the dollar per year for life.

For more information, please contact Local 76-493 and request a Plan Summary or AFM members may download a Plan Summary at www.afm.org.