Posted: Tuesday Feb 6, 2007 7:25 PM
SI.com
An overview of major sports leagues' pension plans:
MAJOR LEAGUE BASEBALL
MLB has a "defined benefit'' plan that promises a specific pension payment to each player that's determined by when and for how long an athlete played.
Current players with 10 years or more service time were to receive $180,000 per year in pension beginning at age 62. Players who didn't play 10 seasons and those who played before 1992 receive less money.
The MLB pension plan was part of the players association's first collective bargaining agreement with owners in 1968. At first, a player had to have five credited seasons of service time to become vested. That requirement was lowered to four years, and today, a player must be on a major league roster only 43 days to accrue pension benefits.
NATIONAL FOOTBALL LEAGUE
The NFL pension system, which began in 1962, pays retired players according to a formula that includes how many seasons he played and when he played them.
As of June 2006, players are to receive $250 a month for each season played before 1982, $255 a month for each season played between 1982 through 1992, $265 for 1993 and 1994, $315 for 1995 and 1996, $365 for 1997 and $470 per month for each season played between 1998 and today.
So a current player who retired after six seasons would get a monthly check for $2,820 in retirement.
Players begin receiving their pension at the age of 45 if they retired before 1993. After 1993, they can receive it at age 55.
The collective bargaining agreement says a player who "incurs a substantial injury that is a significant factor in causing his retirement from football'' is entitled to 100 percent of his monthly pension payment - and at least $1,000 per month - for 7 1/2 years. But critics have said it is difficult to qualify for disability payments.
NATIONAL BASKETBALL ASSOCIATION
The NBA pension plan was established in 1965 and is a defined benefit program.
Based on a retirement age of 62, current players would receive $12,400 annually for each year of service with a maximum amount of $124,000 (10 years of service). Players must play three seasons to become vested.
Those who played before 1965 still receive $200 per month for each season they played.
NATIONAL HOCKEY LEAGUE
Established in 1947, the NHL has a "defined contribution'' plan that establishes an individual account for each player and puts a specific amount of money into that account each year. Teams begin contributing to a player's account after his first season, but the player doesn't become vested in the plan until he has been on an NHL roster for 160 games.
A veteran who has been on an NHL roster for 160 games or more receives the maximum contribution allowed under U.S. tax law - $45,000 in 2006, according to league officials. Players who haven't been on an NHL roster for 160 games receive a smaller contribution.
The plan's normal retirement age is 45. League officials say it is impossible to say how much players will receive when they begin collecting their pensions, because it depends on variables such as the total amount contributed and the investment rate of return.
In terms of disability provisions, NHL players have guaranteed contracts. Players also have some career-ending insurance as part of their rights under the collective bargaining agreement. The players association also recommends players take out personal disability insurance.
PGA TOUR
The PGA Tour first established a retirement plan in 1983. Today, there are two separate programs that contribute money.
The first is called the "cuts'' plan, and it puts money away for a player's retirement according to the number of cuts he makes during a given season. As long as a player appears in 15 events per year, he gets a certain amount of money for each cut made. Last year, making a cut was worth $3,658 toward a player's retirement - then double that amount for each cut made beyond his 15th. Players can begin taking money out of this program at age 50 if they've stopped playing competitively, or at age 60 if they keep playing.
The second program used to be tied to where a player finishes on the money list. But starting this year, it will be tied in with the tour's new playoff-style FedEx Cup championship. The top 150 players in the FedEx Cup standings will receive contributions toward retirement, and the winner of the Cup will get $10 million in deferred compensation toward retirement.
Tour officials do not discuss how much money a specific player might accumulate under the programs. A 2001 estimate by Golfweek magazine said Tiger Woods could end up with $300 million in retirement money under the program. Ron Price, the PGA Tour's chief financial officer, says such estimates probably used "aggressive'' financial assumptions, but estimated that even a mid-level player can expect the retirement plan to provide him with 40 percent to 50 percent of what he was earning in prize money each year after he retires.
Players can begin receiving money out of the second program at age 45 if they stop playing competitively. Players also can apply for an early disbursement under a hardship provision.
ATP MEN'S TENNIS
The ATP retirement plan started in 1990 and includes about 900 participants, including current players who are contributing and retired players. Players become vested in the plan after five years.
Based on the number of tournaments played, the ATP determines each year the 125 singles players and 40 doubles players who are eligible to receive a retirement plan credit. Those players receive a contribution to their retirement account for that year - between $9,000 and $9,500 per year recently - and receive one year of credit toward the five credited years needed to become vested in the program. Three percent of the prize money at tournaments goes to fund the retirement plan.
At age 49, players can elect to postpone their benefits or begin receiving them at age 50. If benefits start at age 50, it continues for 20 years. Players can postpone benefits up to 10 years, then receive it over however many years they want. The last payment must be during the year when they turn 70. The ATP pension plan no longer has a "hardship request'' for players who become disabled through injury.
---
Source: Sports leagues, players association officials and Web sites.
SI.com
An overview of major sports leagues' pension plans:
MAJOR LEAGUE BASEBALL
MLB has a "defined benefit'' plan that promises a specific pension payment to each player that's determined by when and for how long an athlete played.
Current players with 10 years or more service time were to receive $180,000 per year in pension beginning at age 62. Players who didn't play 10 seasons and those who played before 1992 receive less money.
The MLB pension plan was part of the players association's first collective bargaining agreement with owners in 1968. At first, a player had to have five credited seasons of service time to become vested. That requirement was lowered to four years, and today, a player must be on a major league roster only 43 days to accrue pension benefits.
NATIONAL FOOTBALL LEAGUE
The NFL pension system, which began in 1962, pays retired players according to a formula that includes how many seasons he played and when he played them.
As of June 2006, players are to receive $250 a month for each season played before 1982, $255 a month for each season played between 1982 through 1992, $265 for 1993 and 1994, $315 for 1995 and 1996, $365 for 1997 and $470 per month for each season played between 1998 and today.
So a current player who retired after six seasons would get a monthly check for $2,820 in retirement.
Players begin receiving their pension at the age of 45 if they retired before 1993. After 1993, they can receive it at age 55.
The collective bargaining agreement says a player who "incurs a substantial injury that is a significant factor in causing his retirement from football'' is entitled to 100 percent of his monthly pension payment - and at least $1,000 per month - for 7 1/2 years. But critics have said it is difficult to qualify for disability payments.
NATIONAL BASKETBALL ASSOCIATION
The NBA pension plan was established in 1965 and is a defined benefit program.
Based on a retirement age of 62, current players would receive $12,400 annually for each year of service with a maximum amount of $124,000 (10 years of service). Players must play three seasons to become vested.
Those who played before 1965 still receive $200 per month for each season they played.
NATIONAL HOCKEY LEAGUE
Established in 1947, the NHL has a "defined contribution'' plan that establishes an individual account for each player and puts a specific amount of money into that account each year. Teams begin contributing to a player's account after his first season, but the player doesn't become vested in the plan until he has been on an NHL roster for 160 games.
A veteran who has been on an NHL roster for 160 games or more receives the maximum contribution allowed under U.S. tax law - $45,000 in 2006, according to league officials. Players who haven't been on an NHL roster for 160 games receive a smaller contribution.
The plan's normal retirement age is 45. League officials say it is impossible to say how much players will receive when they begin collecting their pensions, because it depends on variables such as the total amount contributed and the investment rate of return.
In terms of disability provisions, NHL players have guaranteed contracts. Players also have some career-ending insurance as part of their rights under the collective bargaining agreement. The players association also recommends players take out personal disability insurance.
PGA TOUR
The PGA Tour first established a retirement plan in 1983. Today, there are two separate programs that contribute money.
The first is called the "cuts'' plan, and it puts money away for a player's retirement according to the number of cuts he makes during a given season. As long as a player appears in 15 events per year, he gets a certain amount of money for each cut made. Last year, making a cut was worth $3,658 toward a player's retirement - then double that amount for each cut made beyond his 15th. Players can begin taking money out of this program at age 50 if they've stopped playing competitively, or at age 60 if they keep playing.
The second program used to be tied to where a player finishes on the money list. But starting this year, it will be tied in with the tour's new playoff-style FedEx Cup championship. The top 150 players in the FedEx Cup standings will receive contributions toward retirement, and the winner of the Cup will get $10 million in deferred compensation toward retirement.
Tour officials do not discuss how much money a specific player might accumulate under the programs. A 2001 estimate by Golfweek magazine said Tiger Woods could end up with $300 million in retirement money under the program. Ron Price, the PGA Tour's chief financial officer, says such estimates probably used "aggressive'' financial assumptions, but estimated that even a mid-level player can expect the retirement plan to provide him with 40 percent to 50 percent of what he was earning in prize money each year after he retires.
Players can begin receiving money out of the second program at age 45 if they stop playing competitively. Players also can apply for an early disbursement under a hardship provision.
ATP MEN'S TENNIS
The ATP retirement plan started in 1990 and includes about 900 participants, including current players who are contributing and retired players. Players become vested in the plan after five years.
Based on the number of tournaments played, the ATP determines each year the 125 singles players and 40 doubles players who are eligible to receive a retirement plan credit. Those players receive a contribution to their retirement account for that year - between $9,000 and $9,500 per year recently - and receive one year of credit toward the five credited years needed to become vested in the program. Three percent of the prize money at tournaments goes to fund the retirement plan.
At age 49, players can elect to postpone their benefits or begin receiving them at age 50. If benefits start at age 50, it continues for 20 years. Players can postpone benefits up to 10 years, then receive it over however many years they want. The last payment must be during the year when they turn 70. The ATP pension plan no longer has a "hardship request'' for players who become disabled through injury.
---
Source: Sports leagues, players association officials and Web sites.
0 comments:
Post a Comment