Agreement & Declaration of Trust
The Board of Trustees of the Fund recently adopted an amended and restated Agreement and Declaration of Trust Establishing the American Federation of Musicians and Employers' Pension Fund ("Trust Agreement").
Please note that contributing employers are legally bound by all of the provisions of the Trust Agreement and any policies adopted thereunder. If the terms of any Collective Bargaining Agreement conflict with the terms of the Trust Agreement, the terms of the Trust Agreement will govern.
Changes to the Trust Agreement and policies that may be of particular interest to some Contributing Employers are described below.
- Contribution Due Date
Through June 1, 2005, contributions were due to the Fund on the date specified in the applicable Collective Bargaining Agreement or Participation Agreement, but in no case later than the end of the month following the calendar quarter in which the work was performed. For contributions that the employer delivers to the AFM or a Local Union that has been authorized to accept payments on the Fund's behalf for forwarding to the Fund, the Fund will treat contributions as timely paid if they are received by the AFM or the local union on or before the due date.
Effective June 1, 2005, the contribution due date has changed as follows: for work under all Collective Bargaining Agreements (other than national Collective Bargaining Agreements) that become effective on or after June 1, 2005, contributions will be due no later than the end of the month following the month in which the work was performed. This new rule also applies to work under agreements that are renewed or extended on or after June 1, 2005. The rule will take precedence over any conflicting language in the Collective Bargaining Agreement or Participation Agreement.
The new rule does not apply to Collective Bargaining Agreements to which the American Federation of Musicians (rather than a Local Union) is a party. The due dates for contributions under those national agreements remain unchanged.
- Late Payments
Contribution payments received after the due date are subject to interest charges. Interest is calculated as per section 9.4(d)(6) of the Trust Agreement. The enclosed Trust Agreement permits the Trustees to establish a minimum amount of interest due on any late payment. Effective for contributions due on or after September 1, 2010, the Trustees have adopted a minimum interest charge of $25 per engagement.
Payments received from a contributing employer on or after September 1, 2010 will be credited as follows, regardless of whether the check or accompanying documentation provides otherwise: first to unpaid interest and administrative charges, second to liquidated damages, third to surcharges, fourth to past due pension contributions, and fifth to pension contributions currently due.
Click here for Guidelines for Late Payments and Underpayments
As a reminder, it is the employer's responsibility to ensure that contributions that it sends to the Fund (either directly or through the AFM or an authorized Local Union) are received by the Fund. The Fund cashes all checks immediately upon receipt; accordingly, if a check has not cleared shortly after the employer has sent it to the Fund or to the AFM or an authorized local union (e.g., three weeks), the employer should contact the Fund office. Also, note that the Fund charges a $50 administrative fee for checks that are not honored by the issuing bank for any reason.
If you have any questions concerning contributions and contribution due dates, please contact Will Luebking, Director of Finance, at (212) 284-1314.