Working
Union:
Maybe the Best Investment
You'll Ever Make
by Bill Elias
We see big numbers in the trade papers every day. A Bug's Life grosses $46.5 million in five days. Titanic pulls in $1.8 billion worldwide. These figures are impressive and welcome, but they do not have as much importance to us individually as a much smaller number: $0.024. This figure is the
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INDIVIDUAL ACCOUNT PLAN |
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Here's what that means in the real world. Let's say you work 2,000 hours a year for 35 years, beginning when you're 30 years old. Assuming you have no break-in-service years, your guaranteed monthly benefit at age 65 would be $2,080 per month. That number breaks down this way: $0.024 x 2,000 hrs. x 10 years = $480. $0.032 x 2,000 hrs. x 25 years = $1,600. $480 + $1,600 = $2,080 per month. By comparison, you would have to put $453,800 in the bank earning 5.5% interest to receive the equivalent monthly income.
The above amounts will be considerably higher if the Guild continues to negotiate percentage increases as it has in the past (18% last contract).
The Individual Account Plan is in addition to the basic monthly Pension Plan benefits and makes it possible for a 30-year-old member who retires at age 65 to receive an additional $343,000 upon retirement. This amount is based on conservative investment adjustments and assumes a wage rate of only $25 per hour. Of course, wages will increase between now and retirement. The chart (left) illustrates the potential growth of an Individual Account Plan.
With your help and support, we will continue our organizing efforts so that all members of the post-production industry can enjoy these benefits.
Bill Elias is an editor and is on the Board of Directors.
If you have any questions about this article,
please call Bill at (323) 956-5632.
Reprinted from
The Motion Picture Editors Guild Newsletter
Vol. 19, No. 6 - Nov/Dec 1998
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Copyright © 1998, All Rights Reserved by The Motion Picture Editors Guild, IATSE Local 700