Thank you so much to Phoebe Scholfied, who got in touch with us on this matter. Please note that this article may be subject to changes as dates & information becomes clearer.
For Post Supervisors in the fast-paced world of film and television production, financial considerations play a pivotal role in shaping the success of a project. Recently, an agreement between Equity and PACT has paved the way for a significant shift in the CROWD ADR landscape. As a Post Supervisor with a finger on the pulse of budgetary matters, understanding the implications of this agreement is crucial for effective future planning.
The agreement in question establishes that contributions to the Equity pension scheme are payable in respect of ADR session fees for PACT TV and film engagements. This move is set to bring about changes in the way Crowd ADR actors contribute to their pensions, creating a ripple effect that will influence their inclusion in post-production budgets. Equity and PACT have collaborated to extend the benefits of the Equity pension scheme to Crowd ADR actors confirming that members of the Equity Pension Scheme should be receiving contributions from the Producer which are paid in addition to their session fees. The mechanics are straightforward: the employee contribution will be deducted directly from the actor’s fee paid to the crowd wrangler and paid into the pension scheme, while productions will pay the employer contribution directly into the pension scheme.
To help streamline this process, a standardized start form/release form is in the works. This document, similar to those utilized by industry giants like the BBC and ITV, will include the necessary details required for production accountants to efficiently administer pension contributions from both the artist and the producer.
Despite PACT’s efforts to communicate this initiative to their producer members, a notable gap in awareness exists among post-production teams and freelance post-production accountants. This lack of dissemination poses a potential challenge as the industry adapts to these new rules.
As a Post Supervisor, your role is central to the financial aspects of the production process. The implementation of the Equity pension scheme for ADR actors introduces new considerations into budget planning. It is essential to consider the potential cost implications for future post-production budgets. While it’s estimated that only 20-50% of ADR actors may choose to participate in the Equity pension scheme, the additional employer contribution (approximately 5% of actors’ fees) and the associated time and cost for post-production accountants to administer these contributions should be factored into future financial planning. We anticipate that this will add approximately 7-9% extra cost to hire crowd, so on larger projects this may mean you are unable to afford as many crowd artists as you did previously. If you have budgeted a show already, please be aware that these costs will hit you from next year!
Just to comment here that from our perspective, the pension contribution is a cost the producer should have been factoring in because they should have been paying the producer contribution on the ADR session fees. The cost of the producer contribution and of the additional administration for paying the producer contribution is not something we would want to see being passed on to the crowd wrangler. Just wary of the messaging here which might discourage artists from taking up the benefit of pension contributions on ADR jobs or discourage crowd wranglers from using artists who they know are members of the pension scheme.
In light of these considerations, a proposed start date for the implementation of this scheme has been suggested. Options include aligning it with the new Equity PACT ADR TV rates effective January 1, 2024, or commencing from April 5, 2024, coinciding with the start of the new tax year. We will keep you up to date on this as although the expansion of the Equity pension scheme to include ADR actors marks a significant step forward in aligning industry practices with evolving standards, the goal has to be a smooth transition and to avoid disruptions to ongoing productions!
A comment on this paragraph – the agreement we have reached with PACT is that the existing pension provisions in the collective agreements should always have been applicable to crowd ADR session fees. When we discovered they were not being applied, we clarified our understanding with PACT and they agreed to our interpretation. Therefore the pension contributions are payable now. We appreciate that crowd wranglers have to work with producers to find workflows to make this possible but that should be happening from now, and the onus is on the producers to make it work.
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