The American Federation of Musicians and Employers’ Pension Plan is poised to receive a $1.5 billion boost from the American Rescue Plan, intended to safeguard it from insolvency. This funding increase is expected to stabilize the nationwide pension plan that assists countless musicians and employers.
As part of a broader initiative, the American Rescue Plan aims to protect against insolvency risks affecting various industries. This aid measure emphasizes the federal government’s dedication to ensuring the financial security of American workers, especially those in the music industry impacted by the ongoing pandemic.
This support is anticipated to aid roughly 50,000 musicians, predominantly in New York. These workers faced potential pension reductions of up to 50%. With this aid, these musicians can now feel more secure about their financial futures.
Pensions for a variety of workers, such as those from Broadway, bands, orchestras, film, and theater were expected to disappear by 2034.
Federal aid boosts musicians’ pension security
However, due to this federal assistance, these pensions are now preserved, providing security and assurance to thousands of these industry professionals.
Senate Majority Leader Chuck Schumer, a passionate advocate for this aid, stressed his commitment to help union members and their families secure the needed pension assistance. Chuck Schumer urges fellow senators to quickly authorize this vital financial aid, noting that it’s not just about economic relief, but also respect and dignity for the nation’s unionized workforce.
The musicians’ pension plan has been under strain due to underfunding. Adam Krauthamer, elected as President of Local 802 AFM during a difficult period in 2018, faced both the economic hardships and legal challenges thrown towards the Union. The closing of theaters due to the pandemic further amplified the urgency for efficient leadership during this crisis.
Sara Cutler, the successor to Tino Gagliardi as AFM’s President, expressed deep gratitude for the financial aid. Speaking of the implications of this aid, Cutler not only anticipates improved stability post-retirement for musicians but also a significant impact on their overall quality of life in their retirement years. Additionally, Cutler made clear that under her leadership, the AFM would continue fighting for the rights and benefits of musicians.
