Studio Beat
The Power of Pension
At the upcoming membership meeting, Saturday, April 22, at 11:00 AM, we will have the honor of featuring the AFM’s Janice Galassi. Janice will speak about various issues important to all of us, but especially to symphonic musicians. In addition, we will have an informational panel discussion concerning pension. I urge you all to attend this important meeting. Below are some of the topics we will cover.
Participating in the AFM Pension Fund is one of the best benefits a musician can enjoy. Currently worth over $1.7 billion, the AFM Employer’s Pension Fund is one of the top pension funds in the country.
Every time you work a union job, the employer makes a contribution to your pension. The amount of that contribution depends upon the Collective Bargaining Agreement (CBA) between your employer and the union. The pension contribution is usually a percentage of your wages, and thus, the amount paid to your pension depends on that percentage and the scale wages you received.
In order to be able to collect a pension when you retire, you must achieve a certain amount of time and level of contributions. This is known as becoming “vested” in the fund. You can become vested in as little as five years of work. Once you are vested, you can’t lose your pension credits, even if you stop working. This is one of the best reasons to work as many union jobs as possible, especially during the earlier years of your career.
Every once in a while, a musician retires, and only then do they realize that they never became vested and therefore cannot collect their pension! Don’t let this happen to you! Many members have questions about pension, so if you’re not sure you understand it, you’re not alone.
Be sure to attend the membership meeting at the local on Saturday, April 22, at 11:00 AM. Pension related topics will include:
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AFM Pension Basics
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Why the Pension fund is a better deal than a typical savings plan
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How to get more money into your pension fund
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Getting vested faster
- Tracking your pension
I look forward to seeing you all at the meeting!
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