A Brief History of the Animation Guild's 401(k) Plan

The above is somewhat out-of-date. Check with the Guild and/or the Plan administrator for full details

I get a diminishing number of asks about the Guild's 401(k) plan (which happens when you are out of the loop), but here is a thumbnail of how the 401(k) Plan started and how it arrived at Vanguard Financial Group:

1995 -- The Guild (then the Motion Picture Screen Cartoonists Union) proposes establishing a 401(k) Plan to supplement the Motion Picture Industry Pension Plan. (The union can set up its own 401k because it's not part of the IATSE bargaining unit under the industry-wide Basic Agreement.)

Producer bargaining representatives say "No!"

After negotiations, union president Tom Sito circulates a petition asking for a 401(k) Plan. It's submitted the CEO Michael Eisner, who says, "Good idea, we'll do it." Disney reverses it's earlier "No" response and agrees to participate in a union 401(k) plan.

Other studios, seeing that the Big Mouse is doing a 401(k) with the union, scramble aboard the bandwagon and say "Yes" as well.

The union approaches multiple third-party administrators. The Principal Financial Group is one of the few companies who will set up a Plan with minimal outlays by the union. The Plan launches in the summer of 1995. There are big initial signups by members. Board of Trustees for the Plan comes into existence -- three Trustees on the employers' side, three trustees on the union side. (Union trustees are the business representative, the union president, and a union board member or member at large who volunteers to become a trustee.

2008 -- There are administrative problems with Principal Financial Group. The board of trustees, with aid of an outside plan advisor, reviews other administrators. Mass Mutual Insurance becomes the new plan administrator. (The Vanguard Group is approached, but declines to become a plan administrator, saying at the time they only do corporate plans.)

2014 -- Plan trustees become dissatisfied with Mass Mutual's service, transparency and costs, and begin search for a new plan advisor and administrator. In August, Vanguard (finally!) comes aboard as the new Plan administrator; at the same time, a new financial advisor joins the Plan. Overall costs of administration for the Plan declines, and Target Date funds become the main vehicle for most participants (over 90%).

2015-2016 -- Roth 401(k) option rolled out across participating studios. Participation in the TAG 401(k) Plan climbs as plan assets pass $250 million.

ADD ON: And the current stats for the Plan?

Total active participants -- 2763.

Total Plan assets -- $304 million.

Average participant assets -- $104,573.

Percentage total of participants in Target Date Funds -- 83.3%.