During the past two years, and with significant DGA member input, the Trustees of the Health Plan have been able to protect important core benefits and bring immediate, short-term financial stability to the Health Plan. These changes were necessary because of recurrent years of double-digit health care cost increases that have affected health care plans across the nation.
As part of the negotiations for the 2002 Basic Agreement and Freelance Live and Tape Television Agreement, the DGA proposed and the Employers agreed that should increases in the cost of health care make it necessary, Employer contributions to the Health Plan would be increased by 1¼2 of one percent (.5%) in the final year of the contracts. The cost of this increase in contributions would be partially off-set by a reduction in the increase in minimum compensation.
Health care costs have continued to spiral since 2002. To maintain Plan financial stability, the Trustees of the DGA Health Plan have determined that it will be necessary to increase the Employer contributions and have authorized this action.
Therefore, from July 1, 2004, through June 30, 2005, when the current Basic Agreement and Freelance Live and Tape Television Agreement expire, the Employers will contribute 71¼2 percent (7.5%) of your defined salary to the DGA Health Plan (up from 7%).
And, beginning July 1, 2004, the minimum salary for those of you who direct Network Prime Time and FBC Prime Time programs under the Basic Agreement, and those of you who direct Network Prime Time and FBC Prime Time Dramatic, Variety, and Quiz and Game programs under the Freelance Live and Tape Television Agreement, will increase 21¼2 percent (2.5%). All other minimums will increase three percent (3.0%) on July 1, 2004. These increases have been reduced by .5%, which represents substantially less in Employer costs than the increase in Health Plan contributions.
The minimum salaries that appear in the printed 2002 Basic Agreement and Freelance Live and Tape Television Agreement do not reflect these changes. The correct rates have been posted on the DGA website www.dga.org.
Rates and contributions under the DGA's Commercial Agreement and Network Staff Agreements (including freelance news, sports and operations) are not affected by this change.
"I want to reaffirm the DGA's continued commitment to maintain the highest quality health care for its members," DGA National Executive Director Jay D. Roth said. "In the upcoming negotiations this important issue will be at the forefront of our dialogue with the Employers to ensure that our members do not shoulder unfairly the financial burden of this national health care crisis."
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