SAG Call Sheet Winter 2012

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Q: Will Global Rule One be in effect? A: Yes. SAG's Global Rule One and the AFTRA's "No Contract No Work" Rule will continue to apply. Q: What about Pension & Health/Health & Retirement? A: Decisions about combining the AFTRA and SAG benefit plans will ultimately be made by the plan trustees, not the unions. But there is no realistic chance the trustees will take steps toward combining the plans unless the unions have already merged. When merger was last considered in 2003, some members were led to believe that keeping the unions separate would protect their benefits – but the reality has been far different. Since then, health plan costs such as premiums have increased while coverage has been reduced; pension accrual rates have declined while earnings needed to qualify for both types of benefits have risen. Many members now find their earnings split between the SAG and AFTRA plans, making it much harder to qualify. Q: Will my pension benefits be protected if the unions merge? A:Yes. Accrued benefits are protected by federal law and those protections will not change if SAG and AFTRA merge. Please read the P&H and H&R Feasibility Report in the packet to see what experts say about the advantages of merger and how it can help plan participants. Q: Why can't you tell us exactly what our benefits will look like after a merger? A: Whether or not there is a merger, it is impossible to determine what future benefits will look like. Plan designs are determined by the Trustees: plans have changed in the past, and Trustees can change the plan design today. However, SAG-AFTRA leadership will do everything possible to ensure the Trustees provide the strongest possible benefits for union members as they always have. Q:Will SAG-AFTRA be a for profit corporation? A: No. It will be a non-profit corporation organized under Delaware law. Q: What will the governance structure of SAG-AFTRA look like? A: SAG-AFTRA's governance structure will combine the best elements of both unions into a dynamic, effective, democratic system. The national president, national secretary-treasurer and national board will continue to be elected by the membership via direct election. There will also be a biennial convention, where additional officers representing certain contract areas and geographies will be elected by the membership via convention delegates. These delegates will be elected by the membership of their Locals. 3

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