Dear Members,

The renewal period for the Guild’s DGC Benefits health plan is set to start Wednesday, November 1st. With a new plan year just around the corner, some members have reached out asking if their benefits might be negatively impacted by recent work stoppages stemming from U.S. industry shutdowns. I want to update you – and reassure you – on several fronts.

I’m pleased to report, thanks to the dedicated and diligent work of our DGC Benefits Trustees, our overall plan remains in good fiscal health and almost no members will see their personal benefit level or eligibility affected by these disruptions. Our plan continues to be as well-resourced and stable – if not more so – than any in the industry.

At the same time, to ensure the utmost fiscal stability of our plan, the Trustees have decided to limit additional costs for this plan year. That means the Trust will not make additional supplementary “Dollar Bank” contributions for members in 2024 and will not add any new enhancements to benefits for the year to come. All of us at the Guild believe this approach strikes the right balance between guaranteeing members the benefits they’ve come to rely on and ensuring the fiscal durability of our plan in the years ahead.

Here are the key details you need to know:

The DGC Benefits plan itself remains on a strong financial footing. It is the firm policy of the Trust to maintain sufficient reserves to cover up to six months of expenses at any given time and to ensure any changes to the plan do not negatively impact our ability to sustain our reserves for at least 5-7 years after any enhancements are introduced. We are steadfast in remaining committed to these policies.

When it comes to your eligibility, it’s important to remember that your personal benefit level is based on total producer contributions over a two-year period ending on June 30th, 2023. Very few productions were impacted by shutdowns prior to June 30th, so few, if any, members will see an impact to their benefit level for the coming year. In addition, thanks once again to the continued stewardship of our reserves, the Guild is one of the only unions in the Canadian film & television industry to base eligibility and benefit levels on two years’ worth of producer contributions. This gives members added time to acquire enough contributions to maintain their benefit levels.

We know from recent experience; this is precisely what occurred after the COVID-19 shutdown in 2020: The overwhelming majority of members went on to earn enough in contributions to ensure that their two-year totals never fell below their prior level of benefits. We are hopeful the SAG-AFTRA strike will be resolved soon, and that productions will ramp up soon after, allowing members to once again maintain their current benefits during the next renewal period in November, 2024. We will, of course, continue to monitor production levels and revenues, keeping you updated should circumstances change.

As some of you are aware, the DGC Benefits Trust was also planning to roll out an improved DGC Benefits plan for this coming year – building on other enhancements in recent years. Unfortunately, due to the significantly lower producer contributions from the last three months, the Trust has decided it’s wise to suspend the rollout of any enhanced plan until financial conditions improve. As I’ve explained, the Trust remains dedicated to maintaining our reserves and the fiscal stability that allow us to reliably deliver benefits to members without disruption – especially when our work and revenues are disrupted. This cautious fiscal policy would be difficult to achieve were we to add further benefits to the plan at this time. The Trust made this unfortunate but disciplined decision, but we believe members will agree that our priority should be to safeguard the viability of our existing plan before considering improvements.

You will be soon receiving instructions on re-enrolment for the DGC Benefits Plan for the plan year 2024. In the face of disruptions and tough decisions, thanks to the support of our members and a willingness to respond to a rapidly changing industry, our benefits package has become an absolute industry leader. Please look for this update in your mailbox soon and do not hesitate to reach out if you have further questions.

Regards,

Brian Baker

Chair, DGC Health & Welfare Trust