News Room







SRSPF RELEASES ANNUAL DISTRIBUTION FOR 2005

08/01/2005, by Fund Administrator,  


Dear Participant/Beneficiary:

This year’s Sound Recording Special Payments Fund (“Fund”) distribution is $12,351,000, based on the fiscal year ended April 30, 2005. Due to the continued slump in the record industry, the distribution will be 9% lower than last year’s distribution. The industry’s ongoing financial problems have resulted in decreases in contributions to the Fund and made it more difficult for the Fund to collect amounts assessed as a result of compliance audits of past years’ record sales (over $2.0 million is currently outstanding). I am pleased to report, however, that the decrease in contributions and compliance audit collections was partially offset by a reduction in the Fund’s administrative expenditures of $1.1 million last year.

Enclosed is a check (or voucher if you elected direct deposit) representing your portion of the distribution, along with a statement of your reported scale wages for calendar year 2004, if any. Please note that the check is only valid for ninety days, until October 30, 2005, and accordingly must be cashed or deposited by that date.

Since becoming the Fund Administrator in October 2004, I have devoted considerable effort to implementing expense reduction strategies and re-evaluating the Fund’s operating processes and procedures. While I believe significant progress has already been made to reduce the expense structure at the Fund, another 5% reduction in operating expenditures has been budgeted for next year. The additional savings is expected to be realized from restructuring and the automation of certain operating procedures.

With the launch of our website (i.e. www.Sound-Recording.Org) in December 2004, the Fund greatly improved its ability to communicate and provide services to its participants and beneficiaries. The website features “News” and “About the Fund” sections, and also has an area dedicated to publishing the names of those musicians who have not claimed their payment in any of distribution years 2003, 2004 or 2005. Other features enable members to sign-up for direct deposit, designate a beneficiary or view their prior years’ tax and wage statements. I encourage you, if you have not already done so, to fill out the enclosed “website registration form” and return it to the Fund by mail in the enclosed return envelope or by fax at 212-310-9481.

Below is a summary comparison of financial information related to the annual distributions for the fiscal years ended April 30, 2005 and 2004:


2005
2004
Contributions
$14,690,000
$15,818,000
Compliance audit collections
726,000
1,903,000
Interest and investment income
190,000
77,000
Insurance proceeds and other income
425,000
-
Musician restitutions
-
245,000
Unclaimed distributions
1,524,000
1,792,000
Total
17,555,000
19,835,000
Operating expenditures
$2,853,000
$3,480,000
Employer share of payroll taxes
1,240,000
1,350,000
Compliance audit expenses
694,000
771,000
Distributions for prior years
99,000
267,000
Total
5,204,000
6,293,000
Annual distribution
$12,351,000
$13,542,000




Sincerely,

V. Robert DiPaola
Fund Administrator