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This is the third in a series of six articles examining recent developments and ongoing issues related to the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) Commercials Contract. Within the last five years, there have been significant changes in the way pension and health contributions paid on behalf of talent hired under multi-service endorsement agreements are determined and made. In 2009, Guidelines for Allocations in Overscale Agreements (the Allocation Guidelines) were appended to the SAG-AFTRA Commercials Contract, establishing safe harbor contribution “allocations” for various scenarios of services being performed by talent. A streamlined arbitration procedure was also introduced for pension and health allocation contribution disputes. And in 2012, the total amount of compensation paid to talent during a contract year that is subject to pension and health contributions payments was capped at $1 million.

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