Motion Picture Industry Pension & Health Plan Set to Roll Out New Reporting/Payment Platform and Delinquency Program Procedures In 2022

Motion Picture Industry Pension & Health Plan Set to Roll Out New Reporting/Payment Platform and Delinquency Program Procedures In 2022

The Motion Picture Industry Pension & Health Plans (MPIPHP or Plan) has announced that it will deploy a new software platform for the reporting, tracking and payment of MPIPHP contributions starting on or about January 1, 2022. Please see MPIPHP’s Delinquency Procedure Update for 2022 located on the Plan’s website for reference.

The Plan has adopted several system process improvements that are intended to streamline processing of contribution coversheets and work detail reports currently submitted by payroll companies and employers. In addition, changes are being made that affect where payments and reports are mailed. The system enhancements will enable MPIPHP to operationalize delinquency fee procedures contained in the Plan’s Trust document for the untimely submission of contribution reporting and payments. As the new system will allow MPIPHP to more easily track reporting and contributions closer to real-time, production companies should be prepared to work with their payroll companies to modify any business processes to accommodate the new Plan platform and the delinquency procedures.

To assist our production company clients with navigating and complying with the new MPIPHP system, Entertainment Partners (EP) has made all necessary business process changes to align with the new Plan reporting and payment software platform. However, because the client exercises sole control over several aspects of this process, EP will be contacting clients to review the new MPIPHP reporting/payment system and delinquency procedures as well as the related EP reporting and remittance process changes designed to facilitate the client’s MPIPHP reporting and remittances under the new Plan platform. To allow production companies to make any necessary adjustments, the Plan has indicated that deployment of the new system and delinquency procedure will be subject to a minimum three-month pilot period during which the Plan will not assess any delinquency fees for untimely reporting and payment.

MPIPHP Delinquency Procedure

Historically, MPIPHP contribution payments and reporting were due within 10 working days after the end of the payroll week, which is midnight on Saturday of each payroll week. If an employer did not remit the correct amount of contributions, the Plan typically would issue a written notice of delinquency to the employer to submit the correct payment and to correct the employer’s reporting. The above procedures are being revised so that reporting and contributions both will be due within 15 calendar days instead of 10 working days from the end of the payroll week. Most significantly, the Plan will assess interest and liquidated damages against signatory employers for untimely submission of reporting and payments to the Plan. MPIPHP will consider the failure to submit the required contribution report alone (even if contributions are remitted) as a default that could trigger the imposition of interest and/or liquidated damages. These new rules apply to payroll contributions but not to Post 60s and Supplemental Markets contributions.

Clients should therefore understand that any inaccurate information provided by production companies on start forms or timecards related to the submission of contributions, such as erroneous union affiliation, occupation code, hired from and work location information, or hours worked or guaranteed, as well as untimely production company submission of Home Plan documentation and/or Non-Affiliate Election forms, may lead to the assessment of fines and penalties by the Plan. For unique circumstances such as projects that retroactively become signatory to a collective bargaining agreement or the late submission of MPIPHP Home Plan documents, the Plan has issued detailed FAQs [please see pages 5-9 of MPIPHP’s Delinquency Procedure Update for 2022] that define the time periods in which contributions emanating from these special events become due. Further information on these special situations and other unique reporting circumstances is available from EP Labor Relations. Because the contribution and reporting rules are complex, production companies should become fully familiar with them and should partner with a motion picture payroll service company that understands the rules and has adopted the necessary reporting and contribution modifications to facilitate compliance.

Calculation of Interest/Liquidated Damages & Delinquency Fee Notices

Interest on delinquent contributions will remain 1% per month. Liquidated damages will reflect the greater of (i) 20% of the amount of contributions due; or (ii) the total amount of interest due on the date that full payment of contributions is made. Liquidated damages are assessed in addition to any interest owed. Interest and liquidated damages will be assessed if the contribution report and payment are not received by the Plan within the required 15-day period. MPIPHP may grant a one-time annual waiver of liquidated damages on delinquent contributions on a per production company employer basis.

Final Word

Production companies should become fully familiar with the new Plan procedures to avoid the assessment of fines and penalties. Timely and accurate document submission by clients to EP is more critical than ever to avoid reporting and payment delays and errors. EP Marketing and Client Experience Teams will be contacting our clients to prepare for the Plan’s implementation of these rules, which the Plan has targeted for January 1, 2022.

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For any questions about this Alert, you may contact:

Lydiann Betzer, Labor Relations Inquiries | lbetzer@ep.com

Maura Bowden, Contribution Remittance Inquiries | mbowden@ep.com

Pedro Cuervo, Production Payroll Inquiries | pcuervo@ep.com