Article VI. Earnings Credit, Pension Credit And Vesting Service

Section 1. Earnings Credit.

a.     Credit for Earnings Received Prior to January 1, 1961 (Prior Service Earnings). A Participant will receive Prior Service Earnings Credit for all payments up to but not exceeding $200,000 on account of earnings received during any one Calendar Year including residuals and/or deferred payments received prior to January 1, 1961 as a result of employment as an Actor in the motion picture industry by (1) a Producer who was at the time of such employment a signatory to a Collective Bargaining Agreement with SAG and who would have been required to make contributions to the Plan had the Plan been in effect or (2) a Producer who was required to make contributions to the Plan in the Calendar Year 1960 in accordance with the applicable Collective Bargaining Agreements. All Prior Service Earnings Credits shall be attributed to the Calendar Year in which such payments were made. If the Plan Trustees determine that a Participant had earnings which would have been counted in computing Prior Service Earnings Credit had they been paid when due, but which were not paid solely because of the financial inability of the Producer to pay the same, such earnings shall be included in computing Prior Service Earnings Credit as though they had been actually paid and shall be attributed to the Calendar Year in which they were due.
b.    Credit for Earnings Received on or after January 1, 1961 (Current Service Earnings). Subject to the limits described in Article VIII, Section 18, a Participant will receive Current Service Earnings Credit for all payments on account of earnings, including residuals and/or deferred payments, received on or after January 1, 1961 as the result of employment as an Actor in the motion picture industry for which contributions are required to be made under a Collective Bargaining Agreement with SAG. For purposes of determining whether earnings are attributable to particular employer, the aggregation rules of Code Sections 414(b), (c), (m), (n) and (o) shall be applied.

All Current Service Earnings Credit shall be attributable to the Calendar Year in which such payments were made or should have been made except that, Current Service Earnings Credit resulting solely from deferred payments, including payments deferred under the Screen Actors Guild-Producers Pension Plan 401(k) Plan, the Screen Actors Guild-Producers Pension Plan Section 457 Deferred Compensation Plan or the Screen Actors Guild-Producers Pension Plan Section 457(f) Excess Deferred Compensation Plan, shall be attributable to the Calendar Year during which the employment producing such deferred payments was performed. Moreover, Participants shall earn Current Service Earnings Credit for benefits paid from the Screen Actors Guild-Producers Executive Deferred Compensation Plan, in the calendar year in which the benefit is paid.

In addition to the foregoing, with respect to theatrical motion pictures, principal photography of which started after January 31, 1966, but prior to July 1, 1971, a Participant will receive Current Service Earnings Credit for all amounts, if any, which would have been paid to such Participant as a result of employment as an Actor in the motion picture industry, had 50% of the Distributor's Gross Receipts from the exhibition of any such motion picture in Supplemental Markets (as defined in Section 3B. of the PRODUCER-SCREEN ACTORS GUILD MEMORANDUM AGREEMENT OF 1971) been included as Distributor's Gross Receipts under the revised theatrical formula applied as set forth in Section 4A. of said PRODUCER-SCREEN ACTORS GUILD MEMORANDUM AGREEMENT OF 1971, and subject to the "no duplication" provisions of Section 4C. thereof. Such Credit shall be given, although no payment of compensation is made with respect to income from this source, provided contributions are required to be made with respect to such Distributor's Gross Receipts under a Collective Bargaining Contract with SAG.
c.    Credit for Earnings in Contiguous Non-Covered Service. In computing Earnings Credit for purposes of Section 3(b) of this Article only, earnings received by a Participant from a Producer as a result of Contiguous Non-Covered Service, shall be deemed earnings received as a result of employment as an Actor in the Motion Picture Industry.
d.    Non-Credited Earnings. Earnings of residuals and/ or deferred payments received on or after January 1, 1961 as a result of employment prior thereto and on which no contributions are required to be made to the Plan will not be credited for any purpose.
e.    Differential Wage Payments. Effective January 31, 2008, differential wage payments (as defined by Code Section 3401(h)(2)) shall be taken into account in computing Earnings Credit under the Plan.

Section 2. Pension Credit.

a.    General. A Participant's total years of Pension Credit shall be the sum of his Prior Service Credit, Current Service Credit and Military Service Credit, if any.
b.    Prior Service Credit. A Participant shall be entitled to Prior Service Credit for each of the Calendar Years 1937 to 1960, both inclusive, with respect to which he has received Earnings Credit of at least $2000. In no event, however, shall a Participant be entitled to more than 20 years of Prior Service Credit.
c.    Current Service Credit. A Participant shall be entitled to one year of Current Service Credit for each Calendar Year after the 1960 Calendar Year in which he Completed 12 months of employment, except that no Current Service Credit will be allowed for any year prior to 1976 in which the Participant's Earnings Credit resulted solely from residuals unless:
1.    the Participant has at least 10 years of Pension Credit (made up of any combination of Prior Service Credit and Current Service Credit); and
2.    in each of the years after 1960 which are included in such 10 years of Pension Credit, he shall have received some payment for current services for which contributions are payable to the Plan.
Initially, a Participant shall be deemed to have completed one month of employment for each $166.67 of Earnings Credit in a Calendar Year, but this dollar figure may be adjusted from time to time in accordance with a schedule to be prepared by the Trustees for this purpose. A Participant who had both attained age 55 and earned at least 5 but less than 10 Pension Credits as of January 1, 1996 will continue to earn Pension Credit, based on the dollar figure in effect for Calendar Year 1995, through the earlier of December 31, 2002 or the year in which he has earned a total of 10 Pension Credits, after which time he will earn Pension Credit based on the dollar figure then in effect. A Participant who had earned at least 3 but less than 10 Pension Credits as of January 1, 1999 will continue to earn Pension Credit, based on the dollar figure in effect for Calendar Year 1998, through the earlier of December 31, 2002 or the year in which he has earned a total of 10 Pension Credits, after which time he will earn Pension Credit based on the dollar figure then in effect. In no event shall a Participant be deemed to have completed more than twelve months of employment in any Calendar Year.

A Participant who is not a Plan Office Participant or Guild Office Participant who fails to complete 12 months of employment in a Calendar Year after 1998 but who completes at least 60 days of employment in a Calendar Year before 2003, or at least 70 days of employment in a Calendar Year after 2002, shall nevertheless be entitled to one Pension Credit for such Calendar Year, provided that any Pension Credits awarded under this alternative "days of employment" provision shall not be used for purposes of satisfying the eligibility requirements for a minimum pension, an Early Retirement Pension, a Disability Pension, an Occupational Disability Pension, or Terminal Illness Benefit.
d.    Military Service Credit.
1.    A Participant whose reemployment following military service commenced prior to December 12, 1994, who has accumulated less than a total of 10 years of Prior Service Credit and Current Service Credit and who received less than the minimum annual Earnings Credit during a particular Calendar Year in which he served in the Armed Forces of the United States during the years after 1939 shall be entitled to one year of Military Service Credit for each such Calendar Year up to a maximum of three years of Military Service Credit, or 10 years of total Pension Credit, whichever is first achieved, provided:
i.    He had some employment and earnings as a motion picture Actor in each of two years prior to such military service; and
ii.    His discharge from such military service was under a condition other than dishonorable. For purposes of this Section 2(d)(1), the term "minimum annual Earnings Credit" means the minimum amount of Earnings Credit required under Article VI, Section 2(c) to earn a year of Current Service Credit.
2.    A Participant whose reemployment following Uniformed Service commences on or after December 12, 1994 will earn Military Service Credit for Qualified Uniformed Service in the same manner as Current Service Credit. For these purposes:
i.    The term "Uniformed Service" shall mean the period of time an Employee spends in uniformed services as further defined in the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended, 38 U.S.C. §4301, et seq.
ii.    Such Uniformed Service shall be Qualified Uniformed Service only if:
A.    The Participant worked under a SAG Collective Bargaining Agreement in the 12 month period immediately preceding the Uniformed Service; and
B.    Such Uniformed Service ended honorably; and
C.    The Participant returns to work under a SAG Collective Bargaining Agreement within one year of concluding Uniformed Service or within such additional period as may be necessitated by hospitalization or convalescence due to illness or injury incurred or aggravated in the performance of service in the Uniformed Service.
iii.     In addition to Earnings Credit calculated in accordance with Article VI("Actual Earnings Credit"), a Participant shall be credited with Imputed Earnings Credit during the period he serves in Qualified Uniformed Service. Such Imputed Earnings Credit shall be based on the Participant's Actual Earnings Credit during the 12-month period immediately preceding such Qualified Uniformed Service reduced by the Actual Earnings Credit credited to the participant during that period of Qualified Uniformed Service.
iv.    Qualified Uniformed Service will be limited to 5 years of Uniformed Service, not counting any periods of Uniformed Service for training and involuntary active duty extensions or where required to complete an initial period of obligated Uniformed Service.
3.    Earnings Credit determined under Section 2(d)(2)(iii) of this Article shall also be used in determining a Participant's Vesting Service under Section 3 of this Article, and in determining whether the Participant incurred a One-Year Break in Service under Article I, Section 28.
e.    Military Service Further Defined. Military Service for which Military Service Credit is allowable under Section 2(d) of this Article shall also include service during the Second World War in the armed forces of a nation that was allied with the United States during said war.
f.    Current Service Credit for Plan Office Participant or Guild Office Participant effective January 1, 2004. Effective January 1, 2004, a Participant who is a Plan Office Participant or Guild Office Participant shall be entitled to Current Service Credit for each Calendar Year after December 31, 2003 in which such Participant (1) earns the "minimum annual Earnings Credit" as specified under Article VI, Section 2(c), or (2) is credited with 1,000 or more Hours of Service.
g.     Current Service Credit for Guild Office Participant Prior to January 1, 2004. A Guild Office Participant will be credited with Current Service Credit prior to January 1, 2004 equal to Years of Credited Service he had earned as provided under the terms of the Guild Plan.

Section 3. Years of Vesting Service.

A Participant shall be credited with one year of Vesting Service for:
a.    Each Calendar Year between January 1, 1937 and December 31, 1960, during which the Participant earned one year of Prior Service Credit; and
b.    Each Calendar Year after December 31, 1960, during which the Participant receives Earnings Credit, as provided in Section 1(b) and 1(c) of this Article, equivalent to twelve months of employment.

A Participant shall be deemed to have completed one month of employment for each $166.67 of Earnings Credit in a Calendar Year, which dollar figure may be adjusted from time to time in accordance with a schedule to be prepared by the Trustees for this purpose. No such adjustment shall be deemed a direct or indirect change in the vesting schedule which would require a Participant election. A Participant who had both attained age 55 and earned at least 5 but less than 10 Pension Credits as of January 1, 1996 will continue to earn Vesting Service, based on the dollar figure in effect for Calendar Year 1995, through the earlier of December 31, 2002 or the year in which he has earned a total of 10 years of Vesting Service, after which time he will earn Vesting Service based on the dollar figure then in effect. A Participant who had earned at least 3 but less than 10 Pension Credits as of January 1, 1999 will continue to earn Vesting Service, based on the dollar figure in effect for Calendar Year 1998, through the earlier of December 31, 2002 or the year in which he has earned a total of 10 years of Vesting Service, after which time he will earn Vesting Service Credit based on the dollar figure the in effect. In no event shall a Participant be deemed to have completed more than twelve months of employment in any Calendar Year.

A Participant who is not a Plan Office Participant or Guild Office Participant who fails to complete 12 months of employment in a Calendar Year after 1998 but who completes at least 60 days of employment in a Calendar Year before 2003, or at least 70 days of employment in a Calendar Year after 2002, shall nevertheless be entitled to one year of Vesting service for such Calendar Year.
c.    Notwithstanding any other provision of the Plan, effective on January 1, 2004, a Participant who is a Plan Office Participant or Guild Office Participant shall be entitled to a year of Vesting Service for each calendar year in which such Participant (1) earns the "minimum annual Earnings Credit" as specified under Article VI, Section 2(c), or (2) is credited with 1,000 or more Hours of Service.
d.    For purposes of determining years of Vesting Service prior to January 1, 2004, a Guild Office Participant will be credited with years of Vesting Service under the terms of the Guild Plan.