Under the previous 2020 MBA, for theatrical employment, the maximum reportable amount of contributions, also known as the project cap or ceiling, was $225,000 for pension and $250,000 for health. This was the maximum reportable amount for a theatrical project for one writer, or a team of two. Thus, for a team of two, the ceiling would be split as a maximum $112,500 pension and $125,000 health for each writer.
Under the 2020 Agreement and previous MBA’s:
Example #1 (2020 MBA):
The writing contract is dated under the 2020 MBA, and the commencement step is $600,000. Each writer receives $300,000 in compensation, and each receives contributions up to the split ceiling of $112,500 for pension and $125,000 for health earnings. The compensation and the ceiling are split.
Example #2 (2020 MBA):
The writing contract is dated under the 2020 MBA, and the commencement step is $50,000. Each writer receives $25,000 in compensation, and each receives contributions on $25,000 in earnings. Both writers would need to earn additional reportable compensation or additional steps to reach their respective ceiling. The maximum reportable amount for each team member is $112,500 pension and $125,000 health. The compensation and the ceiling are split.
Example #3 (2020 MBA with Optional Services):
Here is where it gets interesting. The contract is dated under the previous 2020 MBA, and the Guaranteed Script Fee is $300,000. Each writer receives half or $150,000 in compensation and each receives contributions up to the spilt ceiling of $112,500 pension and $125,000 health earnings. The compensation and the ceiling are split. The same contract has an Optional Polish for $200,000. Optional services are reportable under the MBA under which the work is done. If the optional polish is done after 9/25/23, which is when the 2023 MBA went into effect, the provisions of the 2023 MBA would prevail which also includes the new theatrical ceiling. The full ceiling of $225,000 pension and $250,000 health for each writer is in effect. Each writer would then receive contributions on their $100,000 share of the optional polish. This would bring each team member to total reported amount of $212,500 pension and $225,000 health. The pension cap still has room for $12,500 in reportable earnings and the health cap has room for $25,000 in reportable earnings for each writer.
Under the 2023 MBA:
Under the terms of the new 2023 MBA, each member of a writing team receives a full ceiling of $225,000 for pension and $250,000 for health earnings. They no longer split the maximum reportable amount or ceiling. While the compensation is split between the team members per the terms of the contract, the project ceiling is not.
Example #1 (2023 MBA):
The writing contract is dated under the 2023 MBA. The commencement step is $600,000. Each writer receives half or $300,000 in compensation and each receives contributions up to the full ceiling of $225,000 for pension and $250,000 for health earnings. In short, the compensation is split but the ceiling is not.
Example #2 (2023 MBA):
The contract is dated under the 2023 MBA, and the commencement is $100,000. Each writer receives half or $50,000 in compensation and each gets contributions on $50,000 in earnings. Both writers would need to earn additional reportable compensation or steps to reach their respective ceilings of $225,000 pension and $250,000 health for each writer. The compensation is split but the ceiling is not.
Example #3 (2023 MBA):
The contract is dated under the 2023 MBA and a three-person writing team is to receive $1.5 million – $500,000 per person. The commencement step is $750,000, and each writers receives an equal share: $250,000 per person. Each writer receives contributions up to the full ceiling of $225,000 for pension and $250,000 for health earnings. The compensation is split but the ceiling is not.
Conclusion
The maximum reportable amount or ceiling for a theatrical project is $225,000 pension and $250,000 health. Under previous MBA’s, 2020 and prior agreements, this ceiling was spilt between two team members. Under the 2023 MBA, a team of two split their compensation per the terms of the contract and each writer receives the benefit of a $225,000 pension and $250,000 health project ceiling. In short, the compensation is split but the ceiling is not.