Assignment of Residuals
Reissues of Residuals
Credit for Full and Partial Film Omissions – Prospective & Retroactive Payments
Direct Deposit Policy
Dual Musician/Beneficiary Participants – Beneficiary Designation Determination
Assignment of Residuals
In accordance with the collective bargaining agreements between the American Federation of Musicians (AFM) and the Alliance of Motion Picture and Television Producers (AMPTP), Film Musicians Secondary Markets Fund (FMSMF) participant Musicians are not allowed to assign their residual wage benefits. Further, a participant beneficiary may not assign residuals payments he or she is eligible to receive on account of the death of a participating Musician. Participant Musicians are expected to complete a Musician’s Beneficiary Designation Form to ensure their beneficiary wishes are carried out after their passing.
Reissues of Residuals
The Fund reserves the right to not issue a replacement check unless sufficient documentation has been provided to support the reissuance of an original or replacement check. In the absence of such documentation, the Fund will take the position that a check has been cashed and will not be re-issued. This decision remains at the discretion of the Executive Director.
Credit for Full and Partial Film Omissions (Prospective & Retroactive Payments)
All musicians who are discovered to have been omitted from a covered film, partially, in full, or for whatever reason, and whose omission has been verified, will be credited prospectively.
Retroactive checks will be issued for the period inclusive of the date of the first contribution on behalf of the film in question, from 1989 forward, through the date of processing.
Full and/or partial wage omissions will be processed similarly, without distinction between them. The same policy and system(s) will be utilized in the treatment of both. Retroactive payments for both will be drawn from the same combined reserve fund.
Exceptions to these policies will be handled on an individual, case by case, basis, with the Fund Executive Director making the final decision.
- A TV program produced under the AFM Basic Television Agreement ONLY qualifies for potential FMSMF residuals payment if it was produced AFTER 7/1/71, contains original scoring covered under the AFM agreements AND is exhibited in secondary markets (e.g., pay TV, DVD/Blu Ray, Streaming Media, etc.)
- A theatrical motion picture produced under the AFM Basic Theatrical Agreement ONLY qualifies for potential FMSMF residuals payment if it was produced AFTER 1/31/60, contains original scoring covered under the AFM agreement AND is exhibited in free TV or produced AFTER 7/1/71 for other secondary markets (e.g., pay TV, DVD/Blu Ray, Streaming Media, etc.)
- Musicians employed on sound recordings used in a theatrical motion picture, TV program or streaming media program (a/k/a New-Use) produced under the Basic Theatrical or TV Film Agreement can ONLY qualify for potential FMSMF residuals payments if the following conditions are met:
- The original sound recording they worked on was covered under an AFM session contract AND;
- The theatrical film, TV program or streaming media program was released after January 1, 1991 and contains original score that is covered under an AFM agreement.
- An omission can only be verified by submission of a B7, B4 or B8 form provided to the Fund in connection with the claim for full or partial wage credit.
Direct Deposit Policy
Irrespective of the permission granted in the Direct Deposit enrollment form that authorizes the Fund to debit a Participating Musician’s or Beneficiary’s account, in the event of an erroneous deposit into his/her account1, it is the policy of the Fund that no such debit(s) shall be taken without prior notification via certified mail to the Participating Musician or Beneficiary at the Participating Musician’s or Beneficiary’s address of record with the Fund. In addition, the Fund shall provide such Participating Musician/Beneficiary the opportunity to provide the Fund with a reason in writing why such debit should not be taken, and to request a reconsideration of the debit. The request for a reconsideration—which must be accompanied by the written reason(s) for such reconsideration—must be submitted via certified mail to the Executive Director, Film Musicians Secondary Markets Fund, 15910 Ventura Pl, 9th Floor, Encino, CA 91436, and postmarked within two (2) business days from the date of the receipt of the notice from the Fund of the erroneous deposit. The Executive Director shall review Participant’s request and make final determination as to the validity of the claim.
If the Executive Director rejects the Participant’s request or no request is made, overpayments shall generally be deducted from the Participating Musician’s/Beneficiary’s disbursal subsequent to the disbursal in which the overpayment was made. In the unlikely event that it should be necessary to debit the Participating Musician’s/Beneficiary’s account, final notice shall be given, via certified mail, to the Participating Musician or Beneficiary at the Fund’s address of record for the Participating Musician or Beneficiary at least two days prior to executing the debit.
1“In the event that the Fund deposits funds erroneously into my account, I authorize the Fund to debit my account for an amount not to exceed the original amount of the erroneous credit.”
In accordance with Paragraph 2(a) of the Film Musicians Secondary Markets Agreement annexed to, and made a part of, the AFM-AMPTP Basic Theatrical Motion Picture and AFM-AMPTP Basic Television Motion Picture Agreements, in the event of the death of a Musician entitled to a distributive share thereunder, the Executive Director shall distribute such share to the beneficiary designated by the Musician on a form provided by the Executive Director for such purpose or, if no such beneficiary be so designated, then to the surviving spouse of such Musician; or if there be no such person, to the Musician’s estate. Upon the death of such beneficiary, the Fund will cease to make any further payments, except as provided below:
Notwithstanding the above, it is the policy of the Fund that a Musician may also designate a “Musician’s Final Beneficiary” (a/k/a the “MFB”, formerly known as Beneficiary of Beneficiary” a/k/a “BoB”) with the Fund. Such Musician’s Final Beneficiary must be confirmed in writing by the Musician on a form provided by the Executive Director, and upon the death of the Musician’s beneficiary, the Musician’s distributive share will be distributed to the MFB designated by the Musician. Upon the death of such MFB, the Fund will cease to make any further payments. Only the Musician may designate a MFB. In the event a Musician fails to name a MFB on a form provided by the Fund, the Fund will cease to make any further payments upon the death of the Musician’s beneficiary.
A BoB who was designated in writing by an existing active beneficiary on or before March 31, 2018 will continue to receive the share because of such beneficiary as designated in writing following the death of such beneficiary. However, the Fund will cease to make any further payments upon the death of such BoB.
- The terms “beneficiary” and “musician’s estate” in Paragraph 2(a) of the Film Musicians Secondary Markets Fund Agreement are meant to include only living human beings and, in the case of “estates”, to include only living human beings who are determined to be the beneficiaries of the musician’s estate. To avoid any doubt, the terms “beneficiary” and “musician’s estate” specifically exclude entities such as trusts (other than a trust established only for the specific benefit of a named individual(s) living at the time of the musician’s death), charities, corporations or similar non-human entities. In the case of a trust established for the specific benefit of a living individual, payments will cease to be made upon the death of such individual or upon the dissolution of the trust, whichever occurs first.
- A beneficiary designation may be subject to certain legal limitations, including limitations with respect to surviving spouses in certain jurisdictions. Musicians may wish to consult with an attorney for further information before designating a beneficiary. The Fund does not, and does not purport to, offer legal or tax advice.
Updated January 22, 2021
Dual Musician / Beneficiary Participants – Beneficiary Designation Determination
For participants who are both a Musician and an active Beneficiary of another musician and receiving payments as a beneficiary prior to March 31, 2018:
If there is no Beneficiary of Beneficiary (BoB) Designation Form on file as of March 31, 2018, the payments the Musician is receiving solely as a beneficiary of another musician will cease upon the Musician’s death. However, if a Musician does not have a Beneficiary Designation Form on file at the time of his/her death, but was an active beneficiary with a valid BoB Form on file, this BoB Form will be used to determine his/her beneficiary.
Additionally, if the Fund has both Forms on file [the Musician’s Beneficiary Designation Form and a previously executed Beneficiary of Beneficiary (BoB) Designation Form covering the Musician’s status as an active beneficiary receiving residuals on account of another Musician as of March 31, 2018] and each Form designates a different beneficiary, then the Fund will comply with the designation(s) as indicated on each Form.
If you would like, you can update your Beneficiary Designation Form (PDF).
Once notified by a participant of potential fraud (i.e., the participant’s check is stolen, forged, and cashed), the Fund will provide a standard claim form to the participant for him/her to complete and submit.
If it is proven that the participant is a victim of fraud (i.e. their check is stolen, forged and cashed) the Fund will make a determination on a case by case basis and depending on the amount will:
- File a claim with their insurance company and/or
- Replace the funds to the participant with an Accounts Payable check out of the general funds, documenting the reasons in the ledger, Fund financials, and participant file
- 1099 the participant
- Obtain, if possible, an assignment of the musician’s rights for assets of whatever is recovered by them
- Obtain, if possible, an order of restitution
- Contact the bank who cashed the check
- Pursue legal action against the perpetrator if it is in the Fund’s best interests to do so
If it is determined that the participant has committed the fraud (i.e. cashed duplicate checks) the Fund will establish themselves as a levy/lien agency for purposes of collecting future residuals:
- The participant will be charged for all administrative and legal costs associated with the theft
- The participant will receive a W2 or 1099 for the full amount of the checks cashed
- The lien will be effective until the full amount of the funds is recouped
- The Fund may take legal action against the participant if it is in its best interests to do so