Before beginning a detailed examination of the Plan, here is a summary of its history.

It was started in 1960 and has grown from some $600,000 in initial funding to its present size of approximately $1,300,000,000. It has paid pensions from the first day of its existence. It has also increased the size of its pensions to Participants many times. The Directors hope to be able to adopt further increases on a regular basis, but that will depend upon a number of economic factors, not all of which are predictable or controllable.

The fund is jointly administered by an equal number of Directors from contributing employers in the industry and Directors from the Writers Guild of America, East and west. You will find their names elsewhere in this booklet.

As Directors, it is their responsibility to see that the funds are invested and expended for the benefit of the eligible Participants in a manner, which is fair, legal and prudent. Numerous rules have been established for the Plan in the 40 years of its existence and the Directors have examined and re-examined the rules to make sure that they do not work hardships against individuals or groups. Over the years many changes were made to conform to new federal regulations governing pension trusts. It is inevitable that what suits one Participant does not always suit another. The Plan’s many adjustments over the years can be seen in a close reading of past booklets. The Directors hope to be able to improve the Plan with each adjustment.

The Producer-Writers Guild of America Pension Plan stems from a simple philosophy: the pension paid to each Participant should bear a relationship to the money he or she earned from covered employment. That means the more money you earn as a writer under covered employment (as defined in the Collective Bargaining Agreement), the greater your pension will be (to the extent allowed by law). That does not mean the most successful writers will receive the highest pensions. Far from it. Some of the most successful writers have ownership of television series, participation in motion pictures, and have sold original material for substantial sums of money. Until recently, none of these monies counted toward a pension under the Plan because they did not qualify as covered employment. Now, however, the sale of literary material may be included with the fee for rewrites as covered earnings if the Employer also hires the writer for at least one rewrite or polish of the material.

The Directors have examined many different schemes and plans and changes over the years. They have adopted some, adapted others and rejected others.

The rules, as we have said, are complex, but we believe them to be fair, reasonable, well within the law and the general universe of enlightened pension practices.