If you have worked under SDC covered contracts in each of five Plan years (a Plan year runs from September through August), you are vested in the Fund and guaranteed a pension at age 65. The five years do not have to be consecutive. However, if you have one or two credits followed by five years with no contracts, you will lose your prior credits. If you have three or four credits followed by ten years with no credits you will lose your prior credits. If all of your SDC employment occurred prior to September 1, 1999, seven-year vesting is required.
The Amount of Your Pension
The amount of your pension depends primarily on the amount of employer contributions that were made on your behalf over the years. To determine your annual pension, your contribution total is multiplied by the percentage in effect when you were employed. The current rate is 28%, for all participants for work performed on or after March 1, 2006, and 35% for work performed between September 1, 2001 and February 28, 2006.
In response to market conditions, the Trustees have put in place a Market Adjustment Reduction for work done on or after February 1st, 2009. For work done between February 1, 2009 and February 28, 2010 you will accrue benefits under the Plan by applying the 28% accrual rate to 70% of the contributions made on your behalf. For work done on or after March 1st 2010, the 28% accrual rate will be applied to 35% of the contributions due on your behalf.
John Smith worked in a total of 10 plan years, and works his last year in 2010. Total contributions due on his behalf amounted to $60,000.
$30,000 was due prior to March 1, 2006
$15,000 was due between March 1, 2006 and January 31, 2009.
$10,000 was due between February 1, 2009 and February 28, 2010
$5,000 was due after March 1, 2010
John’s pension is calculated as follows:
$30,000 x 35% = $10,500
$15,000 x 28% = $4,200
$10,000 x 28% x 70% = $1,960
$5,000 x 28% x 35% = $490
$17,150
$17,150 / 12 months = $1,429.16/month (which gets rounded to $1,430) Assuming no additional provisions were made for a beneficiary, John would receive a pension of $1,430/month beginning in the month following his 65th birthday and continuing for the rest of his life.
All employer contributions rates are determined through collective bargaining, for each of the SDC Minimum Basic Agreements. The specific dollar amount paid in for a given job may vary depending not only on the contribution rate, but also the amount of your compensation and the length of the run of the production. You may request a summary of your pension credits at any time by calling 212-869-8129 or by sending an email to Pension@SDCweb.org..
Fund Management
The Fund is currently managed by a joint Board of Trustees, comprised of four Trustees from SDC (appointed by SDC’s Executive Board) and four Trustees from Management (representing Broadway and Tours, Off-Broadway, and Regional theatre producers). With the advice of the Fund’s actuary and consultant, and the guidance of the Fund’s co-counsel and accountants, the Trustees have the responsibility for ensuring the fiscal soundness of the Fund, as well as providing the best possible benefits to you, the Participants.
These descriptions of benefits are intended to be summaries only.
For more detailed information, please consult the Summary Plan Descriptions or call the Fund Office at 800-371-9373 or 212-869-8129. You may also contact us at Pension@SDCweb.org.