| As a result of
actions taken by the Trustees of the AFM-EP Fund (American Federation
of Musicians and Employers’ Pension Fund) we can expect
significant changes in benefit rules commencing on January 1, 2004. |
| Pension
Fund operations are covered by ERISA (Employee Retirement Income
Security Act) ERISA guidelines provide for regulation and oversight
of employee benefit plans, though the Act allows for great flexibility
with regards to Trustee authority. |
While the Fund is solvent and currently has no cash flow problems,
there is a need to introduce benefit reductions going forward and
to ensure that no funding problems arise in the future.
|
Various recommendations to do so were presented and adopted at
the Trustee Meeting of September 24.
|
Approximately
one week ago (September 30), while RMA officers were in NY for
discussions with the Phono industry, some of us had
the chance to speak about the impending changes to the Pension Plan
with several of the AFM Pension Fund Trustees including AFM President
Tom Lee. The drastic nature of the prospective changes was confirmed during some of those discussions.
|
| During
one meeting in which I participated, International RMA Secretary
Marc Sazer and former International Officer and current Nashville
RMA
Vice President
Fletcher “Biff” Watson spoke strongly and eloquently
about their concerns. It was their belief that necessary benefit
changes could be made in more equitable ways. They also spoke of
their desire to make changes in ways that limit the impact on participants
while not undermining the future strength of AFM contracts. |
On
October 2 more than 250 RMALA members met at Local 47 to discuss
the issue and the range of options available to Fund participants.
|
The following day, Pension Trustee and Local 802 President Bill
Moriarity reported to a meeting at Local 802 that additional changes
to the prospective plan were being made.
|
I have spoken to both Trustee Moriarity and Pension Fund Co-counsel
and have been assured by them that certain items are being revisited.
Most importantly, some of the proposed changes, which would have
impacted full-time musicians and freelance recording musicians in
ways that seemed inequitable, are being addressed.
|
It
is abundantly clear that people are on the case, trying to improve
the situation. It is the RMA’s tradition to encourage free-flowing
discussion and people should always feel free to express their
opinions and voice them to AFM leadership and others with regards
to important issues. At this time, however, further contact with
Pension Trustees on the Labor or Management side or with the Fund
itself might well distract them from the “rework” they
are doing. They are under enormous time pressure to complete any
additional changes by an October 15 default deadline and are busy
doing so right now.
|
Things are happening!
|
We await confirmation and as soon as more current information is
available we will post it here.
|
| Phillip Ayling |
| President RMA International
|
