What Wga Services That Are Subject To Pension Plan And Health Fund Contribution

Contract Changes: Frequently Asked Questions

1. What are the minimum increases?

Most minimums increase one.5% in the get-go twelvemonth of the contract, 3% in the second yr and 3% in the third yr. At that place are a few exceptions – certain minimums and residual bases increase by a smaller corporeality, and the residue base of operations for network primetime reruns volition remain frozen for the term of the 2020 contract. In addition, if the Guild chooses to exercise its right to increase alimony contributions, the increases for nearly minimums in the second and third years of the MBA volition be reduced to 2.v% and ii.25%, respectively.

2. Are the year one minimum increases retroactive?

Yep, the companies have agreed that the minimum increases for year 1 are retroactive to May ii, 2020. If y'all have been working during this time at Guild minimum, your fees should exist increased by 1.v%. This applies to scripts written at Gild minimum likewise every bit weekly pay. Please contact Geoff Betts if you have questions.

3. When are the retroactive payments due?

Retroactive compensation for writing employment or purchases that have taken place since May 2, 2020 will be due upon ratification of the contract by the WGA membership at the end of this month, July 2020. Please contact Geoff Betts if yous have questions.

4. What is the alimony increase?

Retroactive to May ii, 2020, the alimony contribution rate will increase a total ane.5%, to x.0% for nigh all work (information technology volition increase a full ane.v% to 8.5% for pilots and the first season of i-hour episodic serial). Nosotros guess this will add approximately $27 meg in additional contributions to the plan in the first year.

The Order too negotiated the right to divert additional money from minimum increases in the 2d and 3rd years of the MBA, in lodge to further shore up our defined benefit retirement plan. On May 2, 2021, the Guild can increment the pension contribution rate to 10.5% by diverting 0.5% from sure minimum increases. On May 2, 2022, the Guild can increase the rate once again to 11.25% by diverting an additional 0.75% from certain minimums and 0.25% from other minimums.

five. Why are diversions from minimums to pension and then important and difficult to reach?

While the pension charge per unit increases are diverted from minimums, it is likewise true that with many screen and television writers working higher up scale, minimum increases have less of an effect on writer pay than do do good contributions. Stated another fashion, a greater portion of writers' earnings are subject to benefit contributions than are subject to minimum increases. For example, nosotros approximate that a 1% increase in minimums generates an boosted $6 million in pay for writers. In dissimilarity, a 1% increase in the pension contribution rate generates virtually $18 million in contributions. As a effect, forgoing sure minimum increases, just increasing the pension contribution rate, is a significant and favorable proceeds. That's why the 2.75% increase to the pension rate is such a significant achievement, and one the AMPTP companies vigorously resisted until the contract borderline.

In total, the Guild secured the right to increase the pension contribution rate by 2.75% during this MBA. Over the course of the 2020 MBA alone, we projection these increases to the pension charge per unit to result in an additional $117 million in contributions to the programme, which is 40% more than if the Club accepted the pattern pension increase of only two% over the three-year contract. The Pension Plan's actuaries tell us this additional funding volition assist protect the plan's long-term fiscal stability and its ability to fund writers' divers benefits in retirement. While the increases in the contribution rate practice not result in increases in individual author pension benefits, the added contributions ensure that our industry-leading retirement benefits are accordingly funded. Other plans accept faced conversion to 401k-way plans where the benefit is no longer guaranteed. Our priority in securing the funding of our pension is a considered and, in your leadership'due south judgment, wise choice aligned with the long tradition of marriage pension plans.

6. How does the paid parental do good work?

For the first time ever, writers who qualify for Guild wellness insurance will be able to get a paid parental benefit to assistance them with the nascence of a new kid, the adoption of a new kid, or the placement of a foster kid. This benefit will be funded by a new employer contribution of 0.5% of writers' earnings, paid in the same manner as contributions to the Pension Plan and Health Fund.

Nosotros approximate the 0.5% contribution volition generate approximately $9 one thousand thousand annually. To adequately fund the benefit, we agreed that paid parental benefit volition get bachelor starting May ii, 2021.

The benefit is designed for a freelance workforce, allowing screenwriters and other non-staff writers to receive it, likewise as those on a TV series staff. The new benefits will be coordinated with state benefits, such as California's Paid Family Leave benefit. The program will be administered past the trustees of the Health Fund and details of the benefits will be finalized in the coming months. The fact that information technology is portable—non tied to a particular employer—may exist a first in any industry in the U.S. and something but a multi-employer union contract tin reach.

7. What are the residual improvements in HBSVOD?

HBSVOD residuals for new serial and feature length programs licensed and written after May 2, 2020 were improved in three ways:

First, the residual bases used to calculate the annual HBSVOD balance payments, which accept not increased in three years, will increase seven.5% effective May 2, 2020. The residuum bases will increase another 7.5% effective May 2, 2021:

Story & Teleplay Residual Base	2017 MBA	2020 MBA Year i	2020 MBA Years 2 and 3
30 infinitesimal episode	$fourteen,119	$15,178	$16,316
threescore minute episode	$25,663	$27,588	$29,657
Feature-length (96 minutes +)	$50,541	$54,332	$58,407

Second, the annual domestic reuse payments (which are calculated equally a percentage of the balance base) for the first three years of reuse of a program on the SVOD platform volition increase, every bit shown in the table below:

Exhibition Year	2017 MBA Percentage of Residual Base	2020 MBA Pct of Residue Base
Year 1	35%	45%
Twelvemonth 2	xxx%	xl%
Twelvemonth 3	30%	35%

3rd, the annual strange SVOD reuse payments are at present fixed at 35% of the domestic payment in perpetuity (previously, the percentage decreased after the third twelvemonth of reuse):

The result is that residuals will significantly increase beyond SVOD platforms. The tables below provide examples of these remainder improvements for various platforms by calculating a full for 3 years of reuse inclusive of both year i and yr 2 vii.5% increases to the residual base of operations. Programs written on or after May 2, 2021 will receive these residuals, which stand for a 46% increase compared to 2017 residual payments:

Half-Hour Episode Residuals—Three Year Total
Platform	Electric current Domestic Subscriber Tier	2017 MBA Residuals	2020 MBA Residuals	Gain
Netflix	45 million+	$27,161	$39,648	+$12,487
Amazon	20-45 one thousand thousand	$eighteen,108	$26,432	+$viii,324
Hulu¹	20-45 million	$13,413	$nineteen,579	+$6,166
Apple Tv set+	5-20 million	$11,770	$17,181	+$5,411

One-Hour Episode Residuals—Three Year Full
Platform	Current Domestic Subscriber Tier	2017 MBA Residuals	2020 MBA Residuals	Proceeds
Netflix	45 million+	$49,369	$72,067	+$22,698
Amazon	xx-45 meg	$32,913	$48,044	+$15,131
Hulu	20-45 million	$24,380	$35,588	+$xi,208
Apple TV+	5-20 million	$21,393	$31,229	+$9,836

Feature-Length Plan (96 minutes+) Residuals—Iii Year Full
Platform	Current Domestic Subscriber Tier	2017 MBA Residuals	2020 MBA Residuals	Proceeds
Netflix	45 million+	$97,228	$141,929	+$44,701
Amazon	twenty-45 meg	$64,819	$94,619	+$29,800
Hulu	20-45 million	$48,014	$seventy,088	+$22,074
Apple TV+	5-20 million	$42,132	$61,503	+$xix,371

viii. Will the improved terms apply to all HBSVOD programs?

Beginning with the 2014 MBA, when the Order negotiated improvements to initial compensation and residuals for high budget SVOD (HBSVOD) programs, the companies limited the awarding of these improved terms to new series licensed and written during the term of the 2014 MBA. If a program had already been licensed or written prior to the 2014 MBA, it did non benefit from the improvements, fifty-fifty for new seasons that were written subsequently the 2014 MBA took effect. This concept was maintained under the 2017 MBA.

During the second year of the contract, this exemption from improved terms volition be eliminated for most HBSVOD serial that were licensed prior to the 2020 MBA. Specifically, seasons of these "exempt" HBSVOD series that begin filming in July of 2021 will benefit from the improved residuals negotiated in the 2020 MBA. Even so, HBSVOD series that were originally licensed during the 2014 MBA will continue to be exempt from the improved residuals and writers on those programs volition be paid nether the residue formula in the 2014 MBA. If you lot are working on an ongoing HBSVOD series and have questions almost how these changes touch your series, please contact Geoff Betts.

ix. What almost lower budget SVOD shows?

In the new MBA, writers working on new SVOD shows at lower budget breaks volition be guaranteed minimum script fees, Article 13 and 14 weekly minimums, and improved HBSVOD residuals. The "high upkeep" suspension for new half-hour series is $1 meg (downwardly from $1.three one thousand thousand), and for new 1-hr series it is $1.7 million (downwardly from $two.5 million). The higher SVOD budget breaks ($ii.1 meg for half-hour programs and $3.8 million for one-hour programs)—where writers are paid network primetime script fees—were unchanged.

10. I am currently on a low budget SVOD show; what happens to me?

The newly lowered SVOD upkeep breaks apply only to new serial licensed later August 2, 2020. Consequently, if you are working on an ongoing low budget SVOD prove, the lower budget breaks will likely not utilise. If the budget of your series continues to rise and ultimately exceeds the prior thresholds ($1.three million for a half-hour series, $2.5 1000000 for a 1-hour series), loftier-upkeep SVOD termswill apply. If y'all have questions about piece of work on a depression budget SVOD series, please contact Geoff Betts.

11. SVOD Platform Subscriber Tiers—what are they and why are they important?

An SVOD platform's "subscriber tier" determines the script fees and residuals that utilize to a writer's employment in 2 ways: starting time, a platform with 20 million or more than subscribers must pay network prime number fourth dimension script fees for programs at the highest budget levels ($2.i million or more for one-half-hours, $3.viii one thousand thousand or more for one-hours); second, a platform'south number of subscribers straight impacts the residuals that must be paid to the author (i.e., a platform with more than subscribers must pay more in residuals for each twelvemonth of reuse).

The subscriber tier for each SVOD service is assessed annually on July 1st. Data on the current subscriber tier for Netflix, Hulu, Disney+ and CBS All Admission will exist available soon. In addition, during 2020 negotiations, the Guild and the companies agreed to place sure platforms (both new and existing) into a specified tier for the commencement twelvemonth of the contract:

Amazon Prime number volition be placed in the twenty to 45 million SVOD subscriber tier
AppleTV+ will be placed in the 5 to 20 1000000 SVOD subscriber tier range
Peacock volition be placed in the one to 5 million SVOD subscriber tier range
HBO Max will exist placed in the 5 to 20 1000000 SVOD subscriber tier range

All SVOD subscriber tier placements will be reassessed on July i, 2021.

12. What were the new writer discounts and why were they eliminated?

The new writer discounts were reductions to minimum screen and television rates that could be used to utilise writers who had not previously worked nether the MBA. For new screenwriters, the contract allowed for a 25% discount on their start screenplay or weekly employment of upwards to 14 weeks. For new television writers, the rates were discounted between twenty% to 40% for up to the first 14 weeks of employment. The Gild sought to eliminate the discounts because they undercut MBA minimums and had disproportionately applied to underrepresented groups.

thirteen. What was the trainee wage rate and why was information technology eliminated?

For decades, the MBA allowed companies to establish training programs under which writers from underrepresented groups who had non previously worked under an MBA could be employed at a steeply discounted trainee wage charge per unit. The Social club succeeded in eliminating this program, which resulted in lower bounty to writers from underrepresented groups.

fourteen. What improvements were made to the Span provision?

The span provision in Article 14.1000.two., which says that a Boob tube writer-producer's episodic fee can cover just two.iv weeks per episode on short order series (14 or fewer episodes, 12 or fewer on circulate)—volition at present use to writers earning less than $400,000 ($375,000 for bones cablevision series employment).This change volition apply to contracts entered into on or later August 2, 2020, and is an increase from the current earnings cap of $350,000. Please notation that if you are working under a deal from prior to Baronial two, 2020—including options exercised under that prior deal — the $350,000 cap continues to use to your employment.

In add-on, for contracts entered into on or after May 2, 2021, a company maynot make additional payments to a author for the sole purpose of "exempting" the writer from bridge protections.

xv. What improvements were made to Options & Exclusivity?

The 2020 MBA improves existing options & exclusivity protections (MBA Commodity 67) in a number of ways:

Previously, companies were allowed to negotiate a ninety-day beginning position hold on a author between seasons. That unpaid hold period is at present shortened to threescore days, later which the visitor must pay to hold the writer in first position or the writer is costless to observe another job.
For contracts fabricated on or after May 2, 2021, the earnings cap under which the options and exclusivity provisions apply will be increased from $280,500 to $325,000 for non-children's serial, meaning more writers will be protected by these improved terms.
The 2020 MBA likewise includes new protections for writers working for brusk periods (e.m., "mini-rooms"). Kickoff with contracts fabricated on or after August 2, 2020, a company may non negotiate an option and hold a writer employed for eight weeks or less, unless the option is for employment that startsimmediately after the initial menses of employment. Writers who earn more than than $280,500 ($325,000 for contracts on or afterward May 2, 2021) in the kickoff employment menstruation of eight weeks or less would be exempt from the new provision.

16. What is the syndication rollback?

Programs licensed for reuse in the broadcast syndication market after July 1, 2020 will pay a residual of ii% of the license fee instead of the prior fixed residual formula. This will likely result in markedly lower balance payments for reuse in the broadcast syndication market. Nonetheless, programs already licensed for broadcast syndication will continue to pay stock-still residuals nether existing license agreements, as well every bit any optional renewals or extensions.

^aneHulu is only a domestic service, the residual payments are for domestic reuse.

Read a summary of the terms of the 2020 MBA.

If you have questions, contact Geoff Betts.