- The AFTRA Retirement Plan is a defined benefit plan in the form of an annuity that pays a fixed monthly amount to qualified participants based on career earnings and contributions made by employers on a member's behalf. There are minimum earning requirements for eligibility (see section titled Eligibility). Participants must attain age 65 years old to receive full benefits. The plan currently allows for seven payment options.
- AFTRA members who meet established earnings levels can become eligible to participate in the AFTRA Retirement Plan. Current qualifications are $7,500 in covered earnings in a calendar year. As of December 1, 2009, that amount changed to $15,000 in covered earnings in a calendar year. Each qualified year receives one pension credit. Vesting occurs after attaining five pension credits. This means that benefits will be paid regardless of future earnings, or lack thereof. Full benefits are paid at age 65 years. Reduced benefits are paid beginning at age 55 years, or earlier in the event of a disability.
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There are two standard payment options: 5-year Certain & Life and Husband & Wife. The 5-year Certain option pays a fixed amount for the member's lifetime. If the participant dies within 5 years, the remaining benefits are paid to a beneficiary until a total of 60 payments have been made. This is the automatic payment option for unmarried participants.
The Husband and Wife option pays a fixed amount to the participant for his lifetime. If the participant dies before the spouse, the spouse receives half the amount paid to the participant for her life. This is the automatic payment option for married participants. - There are alternate payment forms available as well. Life Benefit Only pays benefits for the member's lifetime, but no payments are made after death. 50% Joint and Survivor pays the same as the Husband and Wife option. 100% Joint and Survivor pays the same fixed amount to both the participant and a surviving spouse over two lifetimes. Level Income option provides a higher initial payout until Social Security benefits are realized, then it is reduced for the remainder of the participant's lifetime. There is also an option to coordinate the Joint Survivor and Level Income options to provide steady income over two lifetimes.
- Qualified AFTRA Retirement Plan participants should familiarize themselves with the plan and its payment options. The plan is funded by employer contributions, so there is no cost to the individual. It is guaranteed monthly income based on career earnings. Information regarding the plan is easily obtained at aftrahr.com (see References).
