DGA Monthly

O C T O B E R 2 0 2 6 I 3 Representatives from the DGA-Producer Pension & Health Plans will also be on hand to answer questions from members attending the DGA Health Fairs in New York on October 17 and Los Angeles on October 24. (See notice on page 14.) Important Benefits Changes to the DGA-Producer Health Plan Dear Members, On September 18, many of you received a special Spotlight on Benefits newsletter containing important information about upcoming changes to the DGA-Producer Health Plan. We encourage all members and participants to carefully review this information. Providing health care benefits for our working members has long been one of the Guild's top priorities, and we are proud that the Health Plan is the most well-funded in the industry on a relative basis. But like all plans, it faces significant headwinds due to health care inflation, a low eligibility threshold that does not come close to covering the full costs of care, and a growing retiree population. Since 2023, to pay benefits the Plan has needed to draw down $85.7 million from its reserves, which it intentionally built up over the past two decades. Absent a combination of increased employer contributions and benefits changes, the Plan's consultants projected that the Plan would fully deplete its reserves in 2030. This is why health care was a central issue in our 2026 negotiations, where we secured a record level of new employer funding. However, as we noted prior to bargaining and in our ratification materials, even with this additional funding, the Plan would still need to implement benefits changes to address both immediate cash flow challenges and to secure its long-term financial health. The Plan's Trustees approved a series of benefits changes to begin on January 1, 2027. These include changes to the minimum eligibility threshold, participant premiums, deductibles, carry over credits, extended self-pay, and several other areas, including how contributions on residuals are credited. All the changes are detailed in the Spotlight on Benefits newsletter. The challenges facing health plans across the nation are not unique to the DGA Health Plan. The combination of record new funding and these benefits changes is intended to strengthen the Plan for the long-term and protect this critical benefit for current and future generations of DGA members and their families. We recognize that these changes will impact many participants. At the same time, these changes will allow the Plan to preserve elements of coverage that participants value most – including our high-quality comprehensive benefits, certified retiree coverage, an earnings eligibility threshold that remains well below the actual cost of coverage, and annual premiums that are the lowest in the industry. Preserving these importance features, even as health care costs continue to rise, is a reflection of the Plan's management over many years. We will be holding informational meetings in Los Angeles, New York and on Zoom to provide additional details and answer your questions: • Los Angeles DGA Theater: Tuesday, September 29, 7:00 pm PT • New York DGA Boardroom: Monday, October 5, 6:30 pm ET • Virtual Meeting: Thursday, October 8, 5:00 pm PT/8:00 pm ET • Register for these meetings online at DGA.org. In the interim, if you have any questions about how these changes impact you or your dependents, please reach out to the DGA-Producer Health plan at (323) 866-2200 or visit www.dgaplans.org. Thank you, Russell Hollander National Executive Director Directors Guild of America

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