News Room







ADJUSTMENTS TO SOME CANADIAN MUSICIANS’ 2005 DISTRIBUTIONS TO RECOVER PREVIOUS OVERPAYMENTS

07/18/2005, by Fund Administrator,  
In conjunction with preparing for the 2005 Sound Recording Special Payments Fund (“Fund”) annual distribution, the Fund implemented new procedures to help ensure the accuracy of the distribution. One of those procedures revealed that certain wages reported by AFM-EPW Fund (Canada) to the Fund for two years (2001 and 2003) were duplicated for the following years (2002 and 2004). The result of the duplicate wage reporting for 2002 was that a few musicians received distribution overpayments in 2003 and 2004. Overpayments were made to fewer than 3% of Fund participants and represent only about 1% of the total distributions for those years. The duplicate wage reporting for 2004 will have no effect on the 2005 distribution because the 2004 wage data was corrected before the distribution was calculated.

The Fund has determined the most prudent and cost-effective method of recovering the overpaid amounts for 2003 and 2004 is through an offset of the overpaid musicians’ annual distributions for 2005 or thereafter, as required. The Fund will notify these musicians separately of the details concerning the amount of their overpayments and the distribution amount they will receive this August 1, 2005 (after applying the offset) or, for those musicians whose overpayment was in excess of the distribution amount, the amount of the overpayment remaining to be satisfied from future distributions. More than three-quarters of the total overpayments will be recovered by the Fund through the offsets of the August 1, 2005 distributions.

In response to the Fund’s inquiry concerning this discrepancy, AFM-EPW Fund (Canada) has identified the cause of this reporting inaccuracy and has adjusted its computer-programs, which should prevent the duplication from recurring in the future.


Sincerely,

Robert DiPaola
Fund Administrator

Cc: Ellen Versteeg-Lytwyn – Fund Administrator
AFM-EPW (Canada)