PENSION WEBSITE / SITE INFO / COMMENT / EVENTS

5/19/17
I. IMPORTANT WEBSITE – PENSION
II. SOME INFO FROM THE SITE
III. COMMENT
IV. EVENTS
…Absolutely guaranteed anonymity – Former Musician’s Union officer

…The one voice of reason in a sea of insanity – Nashville ‘first call’
scoring musician
…Allows us to speak our minds without fear of reprisal – L.A. Symphonic musician

…Reporting issues the Musicians Union doesn’t dare to mention – National touring musician

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I. IMPORTANT WEBSITE – PENSION

We received this information from a reliable source.

You need to follow this!:

Hi everyone,

As you all know we have a major problem with the AFM

pension fund. It is actually far worse than we have been

told by the trusties.

A number of very smart dedicated people in the NYC

area have started a committee to address this problem.

They have created a website to inform you of the ACTUAL

situations happening and the timeline in which they have

happened. They have been involving billion dollar multi –

employer hedge fund experts to advise them on some of

these points.

Please read the following website and sign up.

https://www.musiciansforpensionsecurity.com

 

A couple of the group members would like to come

out and address you about this in the next month

or so. I will be working with a couple of people from

SoCal to try and set this up. I will also be attending

the NY meetings as often as possible.

We ALL have to get involved to fix this.

PLEASE SEND THIS TO EVERYONE YOU KNOW

THAT IS INVOLVED WITH THE FUND!

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II. SOME INFO FROM THE ABOVE SITE

Among other valuable info, you’ll find this on the

PENSION SECURITY SITE

As you may have heard, our hard-earned pension benefits
could be slashed to a negligible monthly payout once we
retire. Our Fund Trustees say this is due to a series of
unfortunate events, but it seems more and more clear
that the true unfortunate event is that they are
responsible for a decade of poor performance, and have
been less than transparent about the health of the Fund.

It’s true that in 2008 we incurred catastrophic losses to
our pension fund. That was a terrible year in the market
for all, and during that crash almost every multiemployer
fund suffered substantial losses. But our pension fund
performed much worse … AFM-EPF lost nearly 40%
(AFM website)  of assets spanning the 18 months
surrounding the crash, while other funds suffered an
average of 25%. After that difficult period, the
majority of multiemployer pension funds bounced
back, and 60% of those plans were back in the Green
Zone by 2011 (PBGC). Not ours, however. The AFM-EPF
fund continued to underperform every single year.

Let’s talk numbers here for a minute…
Over the past decade, our fund yielded a 3.2%
net average return. That’s 1.0% below our
already low custom benchmarks (estimated
returns on investments which are calculated
by Trustees and Fund Administration) and
drastically below the industry-wide yield of
6.8% (according to Pension and Investments
magazine). Compared to our peers, we are
underperforming.

Our pension administration spent over $248
million dollars in administrative expenses
and investment fees over the past decade,
while returning only 3.2% (5500s). Last year,
for example, the Fund admitted to losing $10
million in value (AFM-EPF website), but paid
$25 million in administrative costs and
investment fees. Additionally, our Fund’s expenses
have been unnecessarily exorbitant for years.
We spend $190K/month on rent in one of the
most expensive real estate markets in the country,
pay excessively high salaries to Fund administration,
high fees to investment managers (5500s), and
are unnecessarily overstaffed, in comparison to
similar funds. Not only are we paying employees
high salaries, but we are giving them raises almost
every year in the past decade. We are rewarding t
hem for bad performance.

We spent a lot of money to lose money.

We can make a comparative analysis to a peer
pension fund, AFTRA Retirement Fund. AFTRA is
similar to AFM-EPF in size, value of assets, and
personnel (for example, the consultant, accountant,
lawyers, and investment managers are all the same
professionals).  Although we utilize many of the
same resources, AFTRA is under-spending us
dramatically.  Using Form 5500s for the years
available to us, 2009-2014, we created a comparative
fee and expense analysis between AFTRA Retirement
Fund and AFM-EPF. For those six years, AFTRA paid
$103 million in investment fees and administrative
costs, while AFM-EPF paid $153 million in fees and
expenses. The AFM-EPF paid an extra 50 plus million
dollars in fees and expenses more than AFTRA paid
for the same six year period. Despite the fact that
these 2 funds are so similar in size and personnel,
the AFM-EPF paid a third more in expenses and
fees than AFTRA for 2009-2014.

“The Fund will be solvent until 2047.”

Many AFM members didn’t know just how bad things
were with the pension fund until they received a
December 2016 letter  from the trustees saying
that the fund in 2016 spent 25 million dollars in
fees/expenses and lost 11 million dollars for the
year to date. In addition the trustees in that same
letter made it very clear that the fund is in trouble
and could quite possibly be in critical and declining
status in the near future, as soon as this summer.

In this same letter, the trustees let us know that if
we are in critical and declining status that the new
pension law “MPRA” would apply to our fund.  “MPRA”
is a law that allows trustees to cut existing benefits
and gives workers little to no say in the process.

What is hard to explain is the following articles written
in 2015 by AFM trustees and officials just one year
before we received the bad news in that now famous
December 2016 letter about possible benefit cuts
through the new pension law “MPRA.   These articles
all make it seem like the new pension law “MPRA”
doesn’t apply to our fund and we should not be
worried because our fund is projected to be
solvent all the way till 2047.

So what changed in that one year?  Why are the same
trustees just one year later telling us that the new pension
law which allows trustees to make cuts to benefits
could easily apply to our fund now all of the sudden?

We deserve an answer.

AFM President and co-Chair Trustee, Ray Hair, said in
International Musician in January 2015, “the AFM-EPF…
is not projected to become insolvent, and the new law
[MPRA] does not authorize benefit reductions to the AFM-EPF.”

A month later, Local 802 President Tino Gagliardi wrote
In Allegro, “The new spending bill from Congress … includes
a provision that applies to deeply-troubled pension plans
that are near insolvency. As we have stated before … our
pension fund is projected to be solvent until at least 2047,
which is the longest period for which the actuaries have
made projections.”

In the same publication, Local 802’s lawyer Harvey Mars
also stated the fund would be solvent through 2047
and members should “rest secure”.

Tino Gagliardi then agreed with a statement given by
four Union Trustees — Laura Ross, Brian Rood, Bill
Moriarity and Phil Yao — stating again that they believe
the fund with be “solvent through at least 2047”.

UNDERPERFORMANCE AND HIGH EXPENSES

Christopher Brockmeyer, Co-Chair of the AFM-EPF, is
also the Director of Employee Benefit Funds for The
Broadway League. He was actively involved with the
development and passage of MPRA. In Markets Media
in 2014, he said, “I spend a lot more time on investment
issues … than do a lot of the other trustees.” He went
on to say, “Every fund … is primarily motivated by
trying to get its best return, which is typically 7.5%.”
It’s troubling that Brockmeyer, a Trustee of 11 pension
plans in the entertainment industry, and AFM-EPF
Trustee since 2007, believes our return should be
much higher than our 3.2%.  Where is the accountability
for the Fund’s poor performance, after Brockmeyer
claims to be the authority on “investment issues”? And
when our investment performance is failing, shouldn’t Mr.
Brockmeyer and other Trustees, including Co-Chair Ray
Hair, attempt to cut costs?

In 2009, Kilkelly’s salary jumped from $284K to $356K.

The Trustees vote each year on potential salary increases.
Our Fund Administrator and Executive Director, Maureen
Kilkelly, is now paid $422K a year (5500s). Kilkelly has
gotten a raise every year during the past decade, despite
the Fund’s poor performance. To add insult to injury,
in 2009, the year that New York’s Broadway musicians
took a salary freeze, Maureen Kilkelly received a 25.1%
raise. Why did the Trustees vote to raise Ms.Kilkelly’s
salary every year, regardless of the Fund’s performance?

Where is the accountability?

Has the Board of Trustees breached their fiduciary duties
by allowing for excessive fees, poor returns and little to
no transparency for many years?  Our current trustees
seem incapable of or unwilling to rein in exorbitant
costs. Why, after a decade of poor performance, has
there been no change from the Fund’s leadership?

The Trustees must explain the mistakes with full
transparency, improve the administrative performance,
and drastically reduce the high overhead.

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III. COMMENT

Well Hooray for you. You hate my beloved AFM Local 47.
How satisfying this must be to you and your vaunted
“Committee” giggle~ giggle.

[EC: Did it every occur to you, that when the pensions
are slashed to a fraction of what you expected because
of the RMA leadership’s greed over the years (Plus a
touch of technology), and their refusal to talk buyouts,
reducing our membership numbers, dues, pension
and health and welfare, (More taking out than putting
in) with the work going everywhere but here, YOU
are going to be f***ed?

This committee has been trying to SAVE this union
from their damage, whether you realize it or not.

At least direct your anger where it belongs,… those who

caused this situation.

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IV. EVENTS

DEAN AND RICHARD
are now at Culver City Elks

the first 
Friday of 
every month.

7:30pm-10:30pm,
11160 Washington Pl.
Culver City, 90232
310-839-8891
————————————-
LA WINDS JAZZ KATS 584
NO COVER, NO MINIMUM.
Every 2nd and 4th Tuesday of the month at
Viva Cantina
7:30-10:00.
900 Riverside Drive, 
Burbank.

Free parking across the street at Pickwick Bowl.
Come hear your favorite charts played the way
they 
should 
be. 

We are in the back room called
the Trailside Room. 


Come on down.

Guaranteed to swing.

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5/20-21/17

CENTER STAGE OPERA PRESENTS
The Best of Broadway Volume III
Performing Arts Center (on the campus of Reseda High School)
Reseda, CA

May 20th – 7:30 PM
May 21st – 3:00 PM

Music from
Camelot, Cabaret, Guys and Dolls, A Chorus Line,
Snoopy the Musical, Company, Sweet Smell of success,
Miss Saigon, Woman of the Year, Avenue Q, The Wiz, 70 Girls 70
and Annie

Featuring
Nick Navarra
Stephanie Fredericks
Kate Bass
Dylan F. Thomas

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5/21/17

SONG OF THE ANGELS FLUTE ORCHESTRA
Founder, Frederick Staff
Music Director, Charles Fernandez

JAZZY FLUTES!

Sunday, May 21st 7pm at the
First Lutheran Church in Torrance

Guest artists
Ali Ryerson
David Shostac
Fred Seldon
and Billy Kerr

for tickets go here:

Concert Tickets

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5/28 – 6/2/17
The BBB featuring Bernie Dresel

Mark your calendars and/or get tickets now:
playing TWO daytime shows near LAX (Los Angeles Airport)
this will be the only notice (earlier than usual) for these rare
“west side” shows

1.  LA Jazz Institute Big Band Spectacular
SUNDAY May 28 from 4:30-5:30 at Westin LAX Grand Ballroom
Call 562-200-5477 for $20 tickets or get them at the door.
http://lajazzinstitute.org

2.  LA Audio Show
FRIDAY June 2 from 5:30-7:00 at Sheraton Gateway LAX
poolside deck Single day tickets for the 10am-6pm LA
Audio Show and the 5:30 concert are available for $25
at http://www.laaudioshow.com/register

The deck area offers a variety of amenities from cabanas
to lounge seating and standing room where drinks,
appetizers and snacks can also be purchased. For those
whose preference is indoors, the windows of the
Costero Bar, overlooking the pool, will be opened.
And, for attendees, and others, who have worked up
an appetite for more solid fare, the Brasserie restaurant,
also with windows to the pool, will be serving.

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6/21/17
DON’T MISS
THE PHIL NORMAN TENTET
in West Los Angeles
Sunday, May 21st @ 2:30pm
(doors open at 2pm)
Contrapuntal Hall in Brentwood
655 N. Bundy Drive
Los Angeles, CA 90049

For Tickets:
http://www.brownpapertickets.com/event/2951454
limited seating; please reserve early

Hear the Performance of
“THEN  AND  NOW”

Remembering the classic sounds & variations of
12 jazz legends to include:

The George Shearing Quintet
The Dave Brubeck Quartet
The Modern Jazz Quartet
The Cal Tjader Quintet
the Ahmad Jamal Trio
Miles, Dizzy and more

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5/24/17

TALL AND SMALL

Wednesday, May 24th, 2017 8 pm – 10 pm

featuring:
Pete Christlieb & Linda Small
Pete Christlieb tenor sax; Linda Small trombone
saxophones Tracy Knoop, Travis Ranney,
Jeff Kashiwa, Bill Ramsay
trumpets Mike Mines, Jared Hall
piano: David Joyner
bass Clipper Anderson
drums Tim Malland

Cover Charge: $5
B SHARP COFFEE HOUSE
706 Opera Alley
Tacoma, WA 98402
Directions

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5/27/17
CULVER CITY CHAMBER ORCHESTRA
Music Director/Conductor Arlene Cardenes
Saturday May 27th, 5:00PM
A Culver City Centennial Celebration
This performance will feature a new
fanfare by Cary Belling.
Also
Andres Cardenes, Violinist and COnductor
Turning Point School Auditorium
8780 National Blvd. 
Culver City, CA 90232
Click here for ticket information

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6/13/17

CalStateLA Symphony Orchestra/Olympia Youth Orchestra

Dear Friends & Colleagues:

You are cordially invited to attend the admission FREE concert given by the CalStateLA Symphony Orchestra/Olympia Youth Orchestra on Sunday, June 11, 2017 at 3PM at the historic San Gabriel Mission Playhouse, 320 S Mission Drive, San Gabriel, CA 91776.

The orchestra is composed of young and talented students ages 12 through college age performing standard repertoire for orchestra from Baroque to Contemporary periods. Students win their positions in the orchestra through our annual competitive audition. The guest soloist this concert will be the renowned violinist, Timothy Fain, who was the recording artist on the sound track of the movie “The Black Swan”. He will be performing the Mendelssohn Violin Concerto in E minor accompanied by the orchestra.

Other works will include Wagner Tannhauser Overture, 2nd movement of the Dvorak New World Symphony, Mozart Adagio and Rondo for violin and orchestra(performed by our concertmaster, Jeongwon Claire An), and the 1st movement of the Tchaikovsky Symphony No.4.

Looking forward to seeing every there..

Sincerely,
Fung Ho

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7/11-14/17

SANTA BARBARA JAZZ WORKSHOP

The LA Jazz Society is proud to partner with Kim Richmond
and Kimberly Ford in presenting the Santa Barbara Jazz
Workshop, July 11-14, from Tuesday afternoon to Friday night.

A faculty of Jazz professionals teach instrumental/vocal master
classes, improvisation, Jazz Listening (How to listen, and who to
listen to.), modern Jazz combo and Big Band playing with concerts
each late afternoon (open to the public) where advanced students sit in

For more information, visit www.santabarbarajazzcamp.com.

Presented by Kim Richmond and Kimberly Ford
at the Marjorie Luke Theater and SOHO Jazz Club.

You can read all previous offerings at:
http://www.responsible47.com

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UNTIL NEXT TIME,

THE COMMITTEE FOR A MORE RESPONSIBLE LOCAL 47

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