IF YOU’RE A PARENT AND/OR GUARDIAN OF A CHILD PERFORMER IN CANADA, HERE’S SOME INFORMATION YOU NEED TO KNOW.
CHILDREN HAVE PROPERTY RIGHTS IN CANADA.
DID YOU KNOW that as a parent and/or guardian who receives money or property on behalf of a minor in Canada, you may have specific obligations under the law?
DID YOU KNOW that it’s up to you to know and understand those obligations and to act in accordance with the law?
ACTRA PRS cannot provide you with legal advice but there may be resources available to you in your province – ACTRA PRS encourages you to seek out those resources.
Saving for the future
ACTRA protects the unique interests of minors – a responsibility that your union has always taken seriously. ACTRA established Minors’ Trust so a portion of a minor performer’s earnings would be there for them when they reached the age of majority. ACTRA negotiated provisions in our Independent Production Agreement and our UBCP/ACTRA BC Master Production Agreement (beginning in 1999) and National Commercial Agreement (beginning in 2002) to ensure that 25% of all minors’ earnings are held in trust and available to the performer when they reach the age of majority.
As of today, ACTRA PRS administers over 1,600 accounts for minors in ACTRA PRS Minors’ Trust.
Under the direction of ACTRA PRS and trusteed by the ACTRA PRS Board of Directors, funds in ACTRA PRS Minors’ Trust are held in safe savings accounts, where every dollar in the Trust Fund is protected and guaranteed. The ACTRA PRS Minors’ Trust holds the preservation of contributions as its number one goal. Therefore, the Trust has different goals than an investment trust where the returns may be higher, but where the principal may be lost. Currently ACTRA PRS deducts 2% of contributions to provide for the administration of the trust with no fees on amounts held, interest earned, or amounts paid out.
The current annual rate of return for the Trust is 2.45%. Creative Arts Financial (a division of First Ontario Credit Union) was created by artists for artists. They understand the importance of these funds, longer term, to their beneficiaries and seek to maximize the interest rates offered, therefore they review their pricing to make sure we have the best rate. Their focus is helping members achieve financial independence and their advisors are on hand to help member’s unique needs.
Contributions under ACTRA and UBCP/ACTRA collective agreements in Canada
All work by minors in Canada under an ACTRA or UBCP/ACTRA collective agreement requires deductions by producers from earnings to be put into a trust for the benefit of the minor. Outside of BC, those funds are remitted to the ACTRA PRS Minors’ Trust.
As of July 8, 2024, the British Columbia Provincial government passed the legislation to allow BC minors the choice to have their minor’s trust contributions be remitted to either ACTRA PRS or the BC Public Guardian and Trustee (PGT), provided the collective agreement allows for the election. Now, when a minor is employed in British Columbia under a UBCP/ACTRA or ACTRA agreement, and where that agreement provides for the election, the guardians of the minor can choose to have the employer make the minor’s remittance to either ACTRA PRS or the PGT. The election is made on the Performer’s contract or voucher, however the BC PGT is the default if no election is made. The Minor’s Trust for BC resident minors will be released upon reaching the British Columbia’s age of majority – 19 years of age.
Contributions under the IPA and NCA in Canada, currently excluding British Columbia
All work by minors in Canada, excluding British Columbia, under the IPA or NCA requires deductions by producers from earnings to be put into ACTRA PRS Minors’ Trust as per each agreement.
United States of America
Contributions to trusts for minor performers working in the United States is governed by the Coogan Law, which requires that 15% of all minors’ earnings must be set aside in a blocked trust account commonly known as a Coogan Account. Click here for more information.
Minors’ Trust Forms for Producers
NCA – Engager Remittance report for Minors’ Trust Deductions
IPA – Engager Remittance report for Minors’ Trust Deductions Trust Declarations
Beneficiary Reporting
All beneficiaries of the fund will receive a printed and mailed annual statement in the first quarter of the calendar year detailing and summarising gross and net contributions, interest earned, as well as the opening and closing balance of the beneficiary account during the most recently completed calendar year.
Questions?
If you have any questions about the Minors’ Trust, please refer to our Q&A or contact our Administrator Patricia Lanca or 416 489 1311 ext. 5022.
FAQ for Minors’ Trust
ACTRA is the exclusive bargaining agent for all performers – including Minors – covered by the Independent Production Agreement (IPA) and the National Television and Radio Commercial Agreement (NCA). The IPA is a collective agreement which provides for minimum terms and conditions of engagement for performers in the film and television production industry in Canada and the NCA is a collective agreement which covers rates and conditions of engagement of performers in radio and television commercials. ACTRA has always taken its duty to protect the unique interests a Minor seriously and establishing the ACTRA Minors’ Trust is a manifestation of this duty.
In California a law designed to protect the earnings of child actors, known as the Coogan Law was enacted in 1939. The law was named for child actor Jackie Coogan, who filed suit against his parents to recover the $4 million fortune he had made as a popular child actor. However, the law was ineffective and the Screen Actors Guild lobbied to have it amended. California’s new Coogan Law (SB 1162), became effective on January 1, 2000 and it ensures that every time young performers work under an entertainment contract, 15% of the gross earnings will be set aside for them until they reach legal majority. The bill also makes it clear that the earnings of a minor are the legal property of the minor and not his parents.
The provisions of A2716 of the IPA and Article 1611 of the NCA are to some extent based upon the legislative provisions in the Provinces of Ontario and British Columbia, in that they are both designed to ensure that 25% of all Minor’s lifetime earnings over $5,000 will be available to the child when they reach the age of majority.
The rights and interests of Minors now defined in the IPA and NCA as performers under the age of 18, have always received special attention in the ACTRA collective agreements. There is one Article in the IPA, Art. 27, which contains a detailed code regarding the engagement and treatment of Minors on set. In 1999 ACTRA made the reform of Art. 27 one of the central issues in bargaining. As part of this broader strategy to significantly improve and enhance the Minors’ rights, Art. A2716 was negotiated into the IPA and more recently the same language was negotiated into the NCA.
ACTRA, as a democratic organization, feels strongly that it is often in a better position to protect the interests of its members. In fact the raison d’être of ACTRA is the representation of performers and the promotion of performers’ rights, contractual, statutory or otherwise.
As an example, when it became obvious that actors were being ill-served by the Insurance industry, who did not understand the particular needs of artists who are often independent contractors, ACTRA created the ACTRA Fraternal Benefit Society (AFBS). The AFBS has been a resounding social and financial success. In the case of the ACTRA Minors’ Trust, ACTRA knows it can do a better job than Governments – even if Provincial legislatures had the will to enact laws to protect Minor’s earnings. ACTRA is closer and more accountable to its members and understands their needs.
The ACTRA PRS Minors’ Trust ensures that each of the Minors’ Trust investments are efficiently administered and that the fundamental values of transparency and accountability are respected.
After complaints from parents and guardians of BC minors about the outrageous fees which resulted in minors losing money and lack of reporting from the BC Public Guardian and Trustee, UBCP/ACTRA lobbied the provincial government to amend the Employment Standards Regulations to allow for BC minors to have their trust managed by ACTRA PRS instead. Finally on June 8, 2024, British Columbia Provincial government passed the legislation to allow British Columbia minors the choice to have their minor’s trust managed by either ACTRA PRS or the Public Guardian and Trustee.
Under the direction of ACTRA PRS and trusteed by the ACTRA PRS Board of Directors, funds in ACTRA PRS Minors’ Trust are held in safe savings accounts, where every dollar invested in the Trust Fund is protected and guaranteed. The ACTRA PRS Minors’ Trust holds the preservation of contributions as it number one goal. Therefore, the Trust has different goals than an investment trust where the returns may be higher, but where the principal may be lost.
All Minors’ Trust Funds are insured under the Financial Services Regulatory Authority of Ontario. Should any account reach the $250,000 limit for such insurance, a second and any subsequent account required will be opened for the minor in to maintain a fully insured trust. This provides the Trustees (ACTRA PRS Board of Director) and the Beneficiary the comfort of knowing that their funds are secured as they are insured by the Province of Ontario.
There are no annual administration fees payable to ACTRA PRS or its service providers. There is a processing fee of two percent (2%) payable at the time the Minor’s contributions are remitted to ACTRA PRS. This processing fee is calculated on the total contributions.
If a Parent or Legal Guardian is able to satisfy ACTRA PRS that there is an established irrevocable trust, ACTRA PRS may grant an exemption.
Under exceptional circumstances, ACTRA PRS may allow funds to be made available to a Minor provided that there is a demonstrated and dire need to encroach upon the Trust monies. Exceptional circumstances may include medical or psychological needs, or post-secondary education.
Application Forms for either of the above will be made available to the Parent or Legal Guardian, upon request to ACTRA PRS.
ACTRA PRS has available for any Parent or Legal Guardian, the necessary forms to make additional contributions directly. Once the voluntary contributions have been remitted to ACTRA PRS for deposit in the Trust, these monies are subject to all of the rules and regulations established for the Minors’ Trust.
Monies earned while the funds are held in trust are taxable. We recommend that you obtain tax advice.
All beneficiaries of the fund will receive a printed and mailed annual statement in the first quarter of the calendar year detailing and summarising gross and net contributions, interest earned, as well as the opening and closing balance of the beneficiary account during the most recently completed calendar year.
