5 Takeaways from Let’s Talk with Film Musicians Secondary Markets Fund
With the fund distribution on July 1, we thought we’d share some insight from our recent conversation with Kim Roberts Hedgpeth, Executive Director of the Film Musicians Secondary Markets Fund,
1. There are actually two missions of the fund.
The first one is collecting, allocating and distributing residuals.
The second mission is to support essentially both sides of the bargaining table, The Fund communicates with and advises film and television producers and distributors on how the Fund works and helps to foster a good faith working relationship with all parties.
2. In order to be entitled to the residuals that the secondary markets fund collects, the musician had to have worked under an American Federation of Musicians contract, either scoring as a AFM union musician on a motion picture or scoring on a television show, including the new media platforms.
3. The difference between residuals and royalties.
Residuals are actually quite different from royalties. The Fund collects residuals, and these are considered wages by the IRS, so the Fund pays these residuals in the same way an employer would pay a W-2 employee. Because of this the musician is getting credit for social security and credit for unemployment insurance and credit for Medicare. These credits can have significant positive financial consequences down the road.
4. Many people think of us as being a part of the AFM union.
We actually are not, we are a separate organization that exists to process those residuals that are required under the American Federation of Musicians theatrical and television collective bargaining agreements. Think of us as a non-profit payroll house. That's an easy way to conceptualize the work that is done here at the fund.
The importance of designating a Beneficiary.
Every participant is entitled to name a beneficiary for future residuals. There is also a system in place to name a successor beneficiary of your beneficiary. This is a simple process that involves filling out a beneficiary card that you can obtain either on the website or by calling the fund directly. This simple act can provide significant benefits to your heirs. Watch the entire podcast conversation here and contact us if you have any questions we can help with.
Watch the entire podcast conversation here and contact us if you have any questions we can help with.
