DGA Monthly

J A N U A R Y 2 0 2 6 I 1 1 Important Benefits Update from the DGA-Producer Pension & Health Plans The Board of Trustees for the DGA-Producer Pension & Health Plans recently approved important benefits changes to address healthcare inflation. See the information on these changes in this reprint from the Plans' publication, Spotlight on Benefits. BOARD OF TRUSTEES APPROVES INITIAL HEALTH PLAN CHANGES TO ADDRESS HEALTHCARE INFLATION We are all aware that the nation is in the midst of a healthcare crisis. Healthcare inflation has been raging for the past several years; the United States Government endured the largest shutdown in history, largely over health care subsidies, and more recently announced double digit increases in Medicare premiums. Our Health Plan is not immune to these factors. The current healthcare inflationary environment presents a unique challenge to the Health Plan in that it has outpaced the negotiated wage increases on which contributions are based for the last several years. Furthermore, healthcare inflation is forecast to continue to outpace wage increases for the foreseeable future. Contributions on compensation are the Health Plan's largest source of funding and, as a self-funded plan, the Health Plan relies on these contributions to pay benefits. The Health Plan's reserves, which were built up over the past two decades, are the intentional result of the judicious design of our benefit structure, prudent oversight and cost management by the Board of Trustees, and contribution increases negotiated by the DGA over the past few decades. This careful planning positioned the Health Plan to withstand the impact of the pandemic and the strikes, while also making benefit improvements, including infertility benefits, expanded abortion care and related travel benefits, and palliative care benefits. These efforts have resulted in the Health Plan remaining the best funded plan with one of the finest levels of benefits in the industry. While the reserves have allowed us to sustain our current level of benefits despite benefit expenses exceeding contribution income, these losses are projected to continue this year and compound in the coming years. Unless addressed, the Health Plan's reserves will be depleted by the end of this decade. Accordingly, the Board has taken the initial steps outlined below to address these challenges. The Board of Trustees does not make benefits changes such as these without considerable deliberation and forethought. Future changes are being given the same careful consideration, with the main goal being to preserve the vitality of the Plan for years to come for you and your families. INCREASE IN MINIMUM AGE FOR BEGINNING CERTIFIED RETIREE COVERAGE FROM AGE 60 TO 62, EFFECTIVE APRIL 1, 2026: For decades, the Health Plan's rules for Certified Retiree coverage have remained in place without change. During that same time, however, work patterns have shifted so that it is now common for careers to extend well beyond age 60 (the age at which participants currently may begin Certified Retiree coverage). Recognizing this change, the Health Plan will adjust the age at which you may begin Certified Retiree coverage. Currently, to qualify for Certified Retiree coverage: • you must be at least age 60, • have at least 20 years of Earned coverage; and • must have retired from either the DGA–Producer Basic Pension Plan or DGA–Producer Supplemental Plan. Effective April 1, 2026, the minimum age that a qualified participant may begin Certified Retiree coverage will increase from 60 to 62. All other requirements will remain unchanged. — continued on page 12

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