Musicians Union Receives $1.5 Billion Pension Fix From American Rescue Plan

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The American Federation of Musicians and Employers Pension Plan, which represents nearly 50,000 union members in the entertainment industry from Broadway to musicians in orchestras, bands, film, and theaters across the country, will receive a $1.5 billion pension-fix from the American Rescue Plan, U.S.

Senate Majority Leader Charles E. Schumer announced today. Schumer said that the money will ensure that musicians and their families receive benefits that they paid into their whole lives, “but lost through no fault of their own and were set to go insolvent by 2034.” “So many AFM members thought it would lights out and closing curtain for their pensions by 2034, but because of the pension reform I championed in the American Rescue Plan they can now breathe a sigh of relief,” said Schumer in a statement.

Sara Cutler, President of AFM Local 802 called the news “a big win for musicians.” “Musicians work hard for a living, but too many were going to struggle because of the collapsed pension system,” she said, adding that the $1.5 billion will allow musicians to retire “and get what was rightfully owed to them.” According to Pension Benefit Guaranty Corporation, the pension plan was projected to become insolvent and run out of money in 2034, with benefits cut by roughly 50 percent below the amount payable under the terms of the plan.

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