AFTRA fund trustees say merger difficult

Trustees from the AFTRA Health & Retirement Funds have joined in to the debate over merging the Screen Stars Guild and also the American Federation of Television & Radio Artists. The trustees, inside a statement released Thursday, have put cold water on the lately introduced "feasibility review" about merging the AFTRA plan using the SAG pension and health plans. SAG and AFTRA had revealed the feasibility review -- an accumulation of attorneys' opinions that there are no legal impediment to merging the individually operated plans -- included in this week's unveiling from the particulars of the suggested SAG and AFTRA merger. Merger backers are fighting that mixing SAG and AFTRA can make it simpler to mix the plans like a foundation solving the issue that entertainers face for making contributions towards the separate plans after which not meeting the income qualifications. But AFTRA plan trustees stated they've nothing related to the feasibility review -- while acknowledging the review's legal opinions incorporated one from co-counsel towards the AFTRA Health & Retirement Funds, Jani Rachelson. "The board of trustees from the AFTRA Health & Retirement Funds wishes to really make it absolutely obvious the opinions expressed within this 'Feasibility Review' by no means represent the opinion of AFTRA H&R's board of trustees," the trustees stated. "The board of trustees didn't request or authorize this opinion of Fund co-counsel coupled with no prior understanding of the letter before reading through the posting around the websites." The AFTRA plan trustees also cautioned that mixing the SAG and AFTRA plans will be a major challenge. "Although there's without doubt that plan mergers are legally allowable in appropriate conditions, the merger of pension and health funds as large and divergent because the AFTRA and SAG plans boosts complex and different financial, legal and benefit issues which could simply be addressed via a comprehensive analysis carried out through the funds," the AFTRA trustees stated. "No position continues to be, or is going to be, taken through the AFTRA Health & Retirement Funds Trustees or its co-counsel until such time like a comprehensive feasibility study is carried out." SAG and AFTRA will mail out ballots February. 27 to 120,000 SAG people and 70,000 AFTRA people, having a tabulation date of March 30. To become approved, the merger must receive a minimum of 60% from the votes from each union. The unions' review of the "feasibility study" noted that hundreds of multiemployer pensions have merged during the last two-and-a-half decades, and there's no legal obstacle to merging the SAG and AFTRA pension and health plans. Additionally, it stated multiemployer plan mergers don't pose any elevated chance of lack of benefits. The summary also stated, "Mergers are typical and advantageous simply because they strengthen the financial lower making it through plan, reduce administrative expenses and enable employees to target their covered work under just one benefit structure." The controversy over whether SAG's and AFTRA's pension and health plans ought to be merged grew to become a significant problem in 2003. For the reason that contest, 58% of SAG voters backed the proposal -- under 2,000 votes lacking meeting the 60% requirement. For the reason that contest, the SAG management trustees on the merger study committee stated they couldn't support merger. "In the end take no position around the internal union problem of bringing together subscriptions, we all do function as fiduciaries from the SAG-Producer Pension and Health Plans and, as a result, possess a responsibility to SAG plans participants," the management trustees stated in 2003. "These legal duties, that are borne equally by both Producer and Union Trustees, prevent us from supporting a merger from the SAG and AFTRA plans when the merger isn't within the needs of SAG participants." At that time, SAG leader Melissa Gilbert and AFTRA leader John Connolly assaulted the trustees as meddling in union politics and declared, "We all know we can not depend on companies to consider good interests." The management trustees refused the accusations their comments were motivated with a need to derail the suggested SAG-AFTRA consolidation. Contact Dork McNary at dork.mcnary@variety.com