October 1, 2005

Dear Participant:

We are pleased to announce that the Board of Directors of the Producer-Writers Guild of America Pension Plan has adopted a change in Second Retirement Benefits, effective October 1, 2005. This announcement provides an overview of the changes to Plan benefits.

Does this affect me?
If you retire early (or have already had an early retirement) under the Plan, this change in Second Retirement Benefits does affect you. Please read this announcement for information about the update to Second Retirement Benefits carefully.

What are Second Retirement Benefits?
If you retire early (prior to age 65) and return to work in covered employment, you will be entitled to additional benefits (Second Retirement Benefits) on your Second Retirement Date. Your Second Retirement Date may not be earlier than the first of the month following your 65th birthday (unless your birthday falls on the first of the month, in which case it will be on your 65th birthday). If you return to work after age 65, then your Second Retirement Date may not be earlier than the January 1 following the first time you return to work after your Early Retirement Date. Contributions made on your behalf after your Early Retirement Date and before your Second Retirement Date, are reflected in your benefit upon completion of a Second Retirement Benefit Application.

What's new?
Second Retirement Benefits:

1. Your Second Retirement Date is the first of the month following the later of (1) your 65th birthday or January 1 as described above; and (2) the expiration of at least 30 days after your completed Second Retirement Benefit Application is received by the Administrative Office. In any case, it may not be earlier than (1) above. No retroactive benefit will be paid, but the Second Retirement Benefit will be actuarially increased to reflect the delay in the payment of the benefit if occurring later than (1) above.

   Example A:
   Connie retired early, has returned to work in covered employment, and turns 65 on November 27, 2005. Connie will be sent a Second Retirement Benefit Application by the Administrative Office for completion. Connie completes and returns the Application to the Administrative Office on October 21, 2005. Connie will have a Second Retirement Date of December 1, 2005.
   
   Example B:
   Connie, from Example A, does not return her completed Application to the Administrative Office until February 2, 2006. Her Second Retirement Date will be April 1, 2006 (the first of the month following the expiration of at least 30 days). Her Second Retirement monthly benefit will be increased to account for the delay in the start of the benefits. No retroactive benefit will be paid.

2. If you submit a completed Second Retirement Benefit Application to the Administrative Office, but pass away before your Second Retirement Benefits commence, your Second Retirement Benefits will be paid in accordance with your Second Retirement election on your Application. No Pre-Second Retirement Death Benefits, as explained below, will be paid.

   Example C:
   Robert returns his completed Application to the Administrative Office on December 9, 2005, electing the Five-Year Certain and Life Annuity Option with Virginia as his Beneficiary. His Second Retirement Date is February 1, 2006 (the first of the month following the expiration of at least 30 days). Robert dies on January 3, 2006, before his Second Retirement Date. Second Retirement Benefits will be paid to Virginia as the Beneficiary under the Five-Year Certain and Life Annuity Option, beginning on February 1, 2006. Under the Five-Year Certain and Life Annuity Option, Second Retirement Benefits will be paid to Virginia until January 1, 2011.
   
   Pre-Second Retirement Death Benefits:

3. If you retire early (prior to age 65) and return to work in covered employment, but die prior to your Second Retirement Date, a Pre-Second Retirement Normal Death Benefit may be payable to your First Retirement Beneficiary. A First Retirement Beneficiary is the Beneficiary designated by you at your Early Retirement. If there is no such Beneficiary designated, or you wish to have someone other than your First Retirement Beneficiary receive benefits in the event of your death prior to your Second Retirement Date, you may designate a new Beneficiary on a Designation of Beneficiary Form for Pre-Second Retirement Death Benefits Only. The Beneficiary designated on this form will be your Beneficiary for Pre-Second Retirement Death Benefits only. If there is no First Retirement Beneficiary or Pre-Second Retirement Beneficiary designated, then any death benefits will be payable according to the terms of the Plan.

   The amount of the Pre-Second Retirement Normal Death Benefit is a return of the Employer Contributions made on your behalf for covered work done between your Early Retirement Date and your Second Retirement Date, subject to Internal Revenue Code Limits. If you have accumulated more than 20 Qualified Years under the Pension Plan (including Qualified Years prior to your Early Retirement Date), there will be an increase of 28.3% for each year in excess of 20, up to a maximum of an additional 141.5%.
   
   Example D:
   Frank retired early and designated Charles as his Beneficiary. Charles is Frank’s First Retirement Beneficiary. Frank returns to work in covered employment and earns $10,000.00 from his Employer, which then makes contributions to the Plan in the amount of $600.00. Frank is sent a Designation of Beneficiary Form for Pre-Second Retirement Death Benefits, but he does not return the Form. Frank dies on November 10, 2005. Charles will be Frank’s Beneficiary for Pre-Second Retirement Death Benefits. Charles is entitled to receive a Pre-Second Retirement Normal Death Benefit of $600.00 paid in one lump sum. Charles may also receive benefits from Frank’s early retirement, depending on the option elected by Frank at his Early Retirement Date.

4. In the event of 3 above, and if you have a one-year Surviving Spouse or one-year Qualified Domestic Partner, a Pre-Second Retirement Surviving Spouse Benefit may be payable and no Pre-Second Retirement Normal Death Benefit will be paid. A one-year Surviving Spouse (“Surviving Spouse”) is your spouse to whom you have been married for at least one year as of the date of death. A one-year Qualified Domestic Partner (“Surviving Spouse”) is your same sex domestic partner where an Affidavit of Domestic Partnership for the Pension Plan has been on file with the Administrative Office for at least one year as of the date of death.

   The amount of the Pre-Second Retirement Surviving Spouse Benefit is equal to the survivor portion of the Joint and 50% Survivor Annuity calculated as if you elected to begin your Second Retirement Benefits, with a Joint and 50% Survivor Annuity on the first day of the month coinciding with or next following the later of (1) your date of death or (2) the date on which you would have reached your Second Retirement Date had you lived. A Surviving Spouse may elect to receive an immediate lump sum instead of the monthly Pre-Second Retirement Surviving Spouse Benefit by waiving his/her right to the monthly Pre-Second Retirement Surviving Spouse Benefit. The immediate lump sum is the greater of: (1) the Pre-Second Retirement Normal Death Benefit or (2) the actuarial present value of the monthly Pre-Second Retirement Surviving Spouse Benefit.
   
   Example E:
   Albert retired early and designated Betty as his Beneficiary. Betty is Albert’s First Retirement Beneficiary. Albert returns to work in covered employment and earns $50,000.00 from his Employer, which then makes contributions to the Plan in the amount of $3,000.00. Albert is sent a Designation of Beneficiary Form for Pre-Second Retirement Death Benefits, and returns the form designating his spouse of four years, Mary (who is the same age as Albert), as his Beneficiary for Pre-Second Retirement Death Benefits. Albert dies on November 10, 2005. Mary will be Albert’s Beneficiary for Pre-Second Retirement Death Benefits. Since Mary is Albert’s one-year spouse, Mary is entitled to a Pre-Second Retirement Surviving Spouse Benefit. Her monthly benefit will be $54.34 ($3,000.00 times 48.3% Annual Benefit Multiplier times 90% Joint and 50% Survivor Annuity option factor divided by 12 months, times 50% for Survivor portion), which would be paid for Mary’s lifetime. Mary can receive an immediate lump sum benefit, instead of the monthly benefit, of the greater of $3,000.00 or the actuarial present value of the $54.34 monthly benefit. Betty may separately receive benefits from Albert’s early retirement, depending on the option elected by Albert at his Early Retirement Date.

What do I need to do?
Please designate a Beneficiary for any Pre-Second Retirement Death Benefits payable by completing the form sent to you by the Administrative Office, if applicable. The appropriate form will automatically be sent to you, if you are reemployed in covered employment after your Early Retirement Date. In addition, the Administrative Office will send a Second Retirement Benefit Application to you, about two months prior to your Second Retirement Date. Please complete and return the Application according to the deadlines outlined in the Application.

How can I contact the Administrative Office?
You may contact us by sending an e-mail to PensionBenefits@wgaplans.org or by calling us at (818) 846-1015 or (800) 227-7863 and selecting “5” on the main menu to reach the Pension Benefits Department.