To help you understand how the AFTRA Retirement Plan works, it's important for you to know the meaning of the terms defined here. Please note, however, that this glossary is intended to provide only a basic understanding of these important terms as they are used in the Retirement Plan. You should review the rest of the 2006 Retirement Plan Summary Plan Description and related Benefits Updates very carefully for a more detailed description of these terms and how they are applied (including various special rules and exceptions that may be relevant to you).

Base Year is the 12-month period beginning December 1 and ending November 30. As described on page 12 of the 2006 Retirement Plan Summary Plan Description, the Base Year was different at certain times in 1954 and 1955. The Base Year is important because it is the period that is generally used as a reference for determining, for example, whether you earned a Pension Credit and vesting service and how much of a benefit you have accrued.

Beneficiary is the person (if any) entitled to receive payments from AFTRA H&R after your death. If you are not married, your beneficiary is the person whom you designate on the latest designation of beneficiary form that you have filed with AFTRA H&R to receive your pension benefit upon your death. If you are married, special rules apply, and your beneficiary is automatically your spouse (although, in some cases, you may be able to elect another beneficiary if you have your spouse's consent).

Covered Earnings is the gross compensation you receive for work designated as Covered Employment (but not money you receive from a business if you are the sole proprietor or partner). Your Covered Earnings are subject to the limits under the collective bargaining agreement under which contributions are owed. There are special rules regarding what compensation is considered Covered Earnings, how compensation is allocated to Covered Earnings (when, for example, you perform a combination of services) and when Covered Earnings are taken into account.

Covered Employment is defined as services you perform under an AFTRA collective bargaining agreement accepted by the Trustees for which a contributing employer is obligated to contribute to the Fund on your behalf. Covered Employment also includes full time employment with AFTRA and AFTRA H&R (as employers of their employees).

H&R Funds Number – An identification number assigned to registered performers by AFTRA H&R.

Normal Retirement Age is the later of age 65 or the fifth anniversary of the date on which you became an active participant. There are special rules on how to calculate whether you have reached the fifth anniversary of participation.

Pension Credits help to determine your eligibility for a Regular Annuity.  The amount of your Regular Annuity is based on your Covered Earnings in the Base Years in which you earn a Pension Credit. In addition, Pension Credits are used to help determine the amount of your Vesting Service. Whether you earn a Pension Credit in a particular year depends on your Covered Earnings in that Base Year.

Registered Performer is a performer who has provided a completed and signed registration form to AFTRA H&R.  Registered performers are assigned an H&R Funds Number

Regular Annuity is a calculation of your benefit from the Plan (excluding the Retirement Account benefit) based on a percentage of your Covered Earnings in the Base Years in which you earn a Pension Credit (prior to May 1, 2009) and a percentage of employer contributions on your behalf (after May 1, 2009). Your Regular Annuity is first calculated as a benefit payable at age 65 in the form of a Five Year Certain and Life Annuity, and then adjustments will be made for your age on the date you begin to receive payments and for the form in which your benefits are paid.

Vested participant is a performer who has five or more Pension Credits.

Vesting Service is a period of service (measured in years) used to help determine when your benefit becomes non-forfeitable or "vested". Once your benefit becomes vested, you do not lose your benefit rights under the Retirement Plan even if you leave Covered Employment before you have reached the age when you may apply for a benefit. Generally, your Pension Credits help determine when you have earned a year of Vesting Service.