FOCUS: P&H Contributions and Sale of Literary Material Dashboard Dashboard

(10/2/2020)

Before you finalize that spec sale, there’s one key MBA provision you should know about when it comes to employer pension and health plan contributions on purchases of literary material: Pension and health contributions (P&H) are not made on purchases by employers unless the employer also hires you for at least one rewrite or polish connected to the literary material.

"So there is a trick," said WGAW Secretary-Treasurer Michele Mulroney. "And those of us who know the trick, over the years, if we're fortunate to sell a spec, make sure we get our reps to include at least a polish step as part of the deal, so we can get pension and health contributions. Some writers don't know they can ask for that. It's really important that we do."

It's also important to note that if the literary material is original and you are a professional writer, the employer is obligated to offer you the opportunity to rewrite the material. The MBA defines a professional writer as one who, at the time of sale, has met any of the following criteria: employment as a writer for 13 weeks; credit on screen as a writer for a television, motion picture, or “High Budget SVOD Program”; credit for three original stories or one half-hour or longer teleplay in the field of live television; credit for three dramatic half-hour or longer radio scripts; or credit for one professionally produced play or one published novel. You can also negotiate to be deemed a professional writer for purposes of WGA jurisdiction, even if you don’t meet any of the foregoing criteria.

In all cases, to get P&H contributions, make sure employment is tied into your options and spec sales whenever possible. Your future self will thank you.

For more information on the Minimum Basic Agreement, contact the Contracts Department. Looking for help negotiating a deal? Contact the Legal Services Department.