PENSION PLAN-STATUS REPORT

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We last reported in October 2008 the impact of the collapsing financial markets on the Pension Plan.  As you are probably aware, the financial markets remain extremely volatile.  The Plan’s investment managers have advised us that the stock market prices in 2009 could fluctuate wildly like a “rollercoaster ride.”  The concern is that 2009 could be a year of falling asset prices combined with rising unemployment and weak demand for products and services.

The Screen Actors Guild-Producers Pension Plan was not immune to the impact of the declining financial markets.  The Pension Plan in 2008 lost 22.7% of its asset value.  The stock market benchmark, the S&P 500, lost 38% of its value in 2008.  Although the Pension Plan’s relative performance was good, the decline represents a significant loss in the assets of the Plan.  The Plan’s diversified investment program, which was defensively positioned, helped to reduce the 2008 loss.  However in these volatile markets, all asset classes with the exception of U.S. Treasuries declined in value.

Given what has happened to the stock market, you as a participant in the Plan may be asking “is my pension safe?”  If you are receiving a monthly pension the Trustees want to assure you that it is safe.  If you are not currently receiving a monthly pension, any benefits you have earned to date are protected.  The Plan maintains reserves to cover these promises.  Although recent events in the financial markets have significantly reduced those reserves, they are adequate to cover the benefits promised.

As we look to the future we must be prepared for any continued declines in the financial markets.  The Trustees are evaluating the impact of the losses with the Pension Plan’s Actuary.  A plan will be developed to reduce costs and begin the process of restoring Pension Plan reserves.  More information will follow in future editions of our “Take Two” newsletter.  If you should have any questions please contact the Plan Office.

— The Board of Trustees