A lot of what follows is written in detailed, technical language. What it boils down to is this:
- The Producers-Writers Guild of America Pension Plan is well into the “green zone”.
- We are required by law to have withdrawal liability procedures in the event there are any unfunded benefits, however small they may be.
- The Plan has adopted the Entertainment Industry Exception which limits the circumstances under which employers could be liable.
Each contributing employer is required to pay the Producers-Writers Guild of America Pension Plan (“Fund”) all amounts due as withdrawal liability resulting from a partial or complete withdrawal from the Fund in accordance with the applicable requirements under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
Under ERISA and the Plan document for the Fund, the Board of Directors (“Directors”) has full authority to adopt rules and regulations governing the determination and payment of withdrawal liability. These rules and regulations are binding on all employers. In the event of any inconsistency with such rules and the governing law under ERISA, ERISA will control and be binding on the employer and the Fund.
Withdrawal liability represents a withdrawing employer’s share of the unfunded vested benefit liability (“UVB”) of the Fund, which is calculated on an annual basis. Set forth below are the procedures adopted by the Directors for applying ERISA’s withdrawal liability rules to the Fund.