The national board of SAG-AFTRA has approved a new four-year contract with major Hollywood studios. The agreement now heads to members for ratification voting. One of the biggest talking points is the planned merger of the SAG and AFTRA pension funds in 2028. The proposal has already sparked criticism from some union members.

“It’s a bailout,” said Peter Antico, a former candidate for secretary-treasurer who has already lodged a complaint with the Department of Labor.

“It’s very detrimental to SAG and it bails out AFTRA’s retirement fund,” he said, as reported by Variety.

The board ultimately voted overwhelmingly in favor of recommending the deal to members, with 89% backing the agreement. Union leaders argue the merger will address a long-standing issue involving “split earnings,” where performers working under both systems fail to accumulate enough credits in either pension plan to qualify for benefits. To support the transition, studios agreed to increase contribution rates to the merged fund by 1%, a measure the union says will help stabilize finances and improve benefits for participants.

Beyond pensions, the agreement also includes updates tied to artificial intelligence protections and streaming residuals. Contributions to the streaming residuals fund will rise from 25% to 35% of a performer’s base residual for the most-watched streaming content. The contract further introduces new rules around the use of synthetic AI performers, requiring studios to demonstrate “significant additional value” before using digital replicas or synthetic characters. The agreement also includes annual 3% increases to most minimum pay rates during the four-year term.

The growing debate comes as Hollywood unions continue facing major labor challenges.

Inside the rise of the Writers Guild Staff Union

The Writers Guild Staff Union was created in spring 2025 by 110–115 staffers working within the Writers Guild of America West. The group represents employees across departments, including legal, contracts, communications, research, and residuals. Workers pushed for stronger protections and formal union representation.

Contract negotiations began in September 2025 after WGAW leadership voluntarily recognized the union. However, talks soon became difficult as staff members demanded better pay, stronger job security, grievance protections, and safeguards surrounding AI-related issues.

Tensions reached a breaking point in early 2026 when 82% of participating members voted to authorize an unfair labor practices strike. The strike officially started on February 17 after negotiations stalled and has since become one of the longest staff union disputes in recent U.S. labor history.

Against this backdrop, SAG-AFTRA’s newly approved contract highlights Hollywood’s wider push for stability after the disruptive 2023 strikes. While supporters praise the deal’s wage increases, streaming residual improvements, and AI protections, critics remain concerned about the long-term impact of the proposed pension merger.

What do you think about SAG-AFTRA’s proposed pension changes and new AI protections? Let us know in the comments!

Written by

Karishma Dasgupta

Edited by

Aliza Siddiqui