• A Pension Fund for Musicians
• It's Quicker Than You Think
• Don't Worry, the Pension Fund is Safe
• AFM-EP Fund Means Big Benefits
• Who to Contact
• AFM-EP FUND – MONEY IN YOUR POCKET
  ...a list of Contractors, Leaders, Organizations, Recording Facilities, and Collective Bargaining Agreements contributing AFM-EPFund pension payments on behalf of our members... vesting requirements and an example of benefits received

The AFM-EP Fund was created in 1959 by AFM President Herman Kenin who negotiated it as part of a new five year agreement between the AFM and the phonograph record industry. By mid-1960, pension coverage was extended to network radio and television, pamphlet B traveling engagements, and the AFM's jingles contract. In July of 1961, symphony orchestras, arrangers, orchestrators, and copyists became eligible for inclusion in the AFM-EP Fund.

The concept of a pension fund for musicians, most of whom are casually employed for many different employers in the course of a year, a month, or even a week, would have to address the issue of portability. With the AFM-EP Fund, musicians would be able to build individual pension credit from different employers.

All employer contributions are made directly or through the AFM Local to the AFM-EP Fund, which is administered separately from the AFM. The Pension Fund has an independent administrator and a Board of Trustees having equal representation from the AFM and industry.

The vesting period for participation in the AFM-EP Fund is only five years. Being fully vested means that a participant has earned a right to a regular pension that cannot be forfeited. A musician may accrue the five years on a º year, year, æ year, or full year basis as follows:

• 1/4 year credit for $750 in covered earnings;
• 1/2 year credit for $1,500 in covered earnings;
• 3/4 year credit for $2,250 in covered earnings;
• 1 year credit for $3,000 in covered earnings.

Of course, the more work you do under contracts which have pension provisions, the greater the benefit you will receive when you retire. But, these quarter-year vesting provisions are necessary for musicians who may only do one or two shows at the Ordway, for example, making it easier to become vested in the pension plan and to secure a guaranteed pension benefit.

The AFM-EP Fund's assets are managed by investment advisors who invest the fund in bonds, stocks, government issues and real estate. As of March 31, 1998 the Plan assets stood at $1,409,661,760. That's almost $1.5 billion! The fund is insured under U.S. law by the Pension Benefit Guaranty Corporation, which guarantees most vested retirement pensions.

The current regular pension benefit from the AFM-EP Fund consists of monthly payments to you based on (1) total contributions credited to you, and (2) your age on the effective date of your pension.

The regular pension benefit is generally paid as a life annuity with guaranteed amount or as a husband-and-wife pension. Beginning in 2004, monthly payments under the life annuity are calculated according to the following table:

Under the husband-and-wife pension, monthly payments will be lower because the payment period is expected over the remainder of both you and your spouse's lifetimes. The exact amount of adjustments will depend on the age difference between you and your spouse.

One example of pension benefits:
(this example is intentionally based on low figures to demonstrate the value to even part-time musicians)
If you had $5,000.00 in covered earnings a year for 20 years at a 7% pension contribution, you would have contributed $7,000.00 to the pension fund. At age 65 (based on the new 2004 rate of $3.50/$100.00 contributed) you would start receiving a monthly check for $245.00 before you turn 68 (at 29 months to be specific) you will have received all your contributions back ($7,105.00). By 70 you will have received $14,700.00 from the fund. That amount represents not only all of your pension contributions, but you will also have received more money than you paid in annual and work union dues (on those covered earnings) over that 20 year period (based on $152.00/year anual dues and 2-1/2% work dues on $5,000.00/year for 20 years = $5,540.00). Every year just keeps adding on. Live long and prosper.

If you have questions concerning your eligibility for participation in the AFM-EP Fund, please call the office at 646-7829. If you are currently participating in the AFM-EP Fund and you would like to check the status of your account, you should direct your inquiry to:

                                              Maureen Kilkelly
                                              Fund Administrator
                                              AFM-EP Fund
                                              304 East 44th Street
                                              New York, NY 10017

In your letter, state your Local Number, Social Security Number and Birth Date.