DPO musicians wary of pension fight

Philadelphia Orchestra proposal would affect DPO pension fund.

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By Terry Morris, Staff Writer 11:17 PM Monday, December 26, 2011

DAYTON — The Dayton Philharmonic Orchestra, like many others in the United States that have union contracts with its musicians, contributes in their names to the American Federation of Musicians and Employers Pension Fund.

News that the financially beset Philadelphia Orchestra, one of the country’s largest, is seeking bankruptcy court protection to withdraw from the fund is stirring ripples in the music world.

Paul Helfrich, president of the Dayton Philharmonic, said Philadelphia’s withdrawal from the fund “wouldn’t put our musicians’ pensions in jeopardy. It might increase the amount we and all other participants would have to pay into the fund.”

But if other large orchestras also pulled out, “the fund could collapse. That’s why the fund is contesting Philadelphia’s withdrawal so vigorously, seeking a $35 million penalty payout for them to exit,” he said.

One reason pension burdens are much heavier on bigger orchestras, particularly those with full-time musicians, is that some have in-house pension funds as well as the multi-employer fund Dayton is part of.

“We may all be running our pensions through the same fund, but each orchestra has a different agreement with their own musicians. Dayton is a $4.8 million orchestra (annual budget). Philadelphia is at least 10 times that size and the New York Phil is probably more like $70 million,” Helfrich said.

Contributions to the AFM-EPF “are a regular part of our operating budget and are not creating any special pressure for us. Our collective-bargaining agreement with the musicians obligates us to contribute an amount equal to 4.5 percent of all wages earned by each musician to the fund, individually, in their names. That means that for each $100 earned by a DPO musician, we contribute $4.50 in their name to the AFM-EPF,” Helfrich explained.

“Philadelphia’s situation is a lot different. They’ve had a defined benefit plan and you can bet it costs a lot more than 4.5 percent of wages.”

Contact this reporter at (937) 225-2377 or tmorris@DaytonDaily News.com.towrt

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