Comments on: NFL Retirement Plan Amendment Reduces Pension Payout to Participants http://retiredplayers.org/2008/03/31/nfl-retirement-plan-amendment-reduces-pension-payout-to-participants/ Covering NFL Player Issues Wed, 08 Sep 2010 09:48:13 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: RetiredPlayers.Org http://retiredplayers.org/2008/03/31/nfl-retirement-plan-amendment-reduces-pension-payout-to-participants/comment-page-1/#comment-3304 RetiredPlayers.Org Tue, 26 May 2009 15:02:23 +0000 http://retiredplayers.org/?p=42#comment-3304 In response to the previous comment: NFL players already reduce their monthly pension payments up to 43 percent in order for their beneficiary, such as their wife, to continue receiving a monthly benefit if the NFL player predeceases his beneficiary. The reduction of benefits that is criticized on this website is a separate issue. This reduction is known as a "pop-up provision". Under this "pop-up provision" NFL players who begin drawing their pensions after April 1, 2007, are being asked to pay up to an additional eight percent of their pension in order to fund this provision. Under the "pop-up provision", if a player's wife dies before the NFL player, the player’s benefit will “pop-up” to the monthly amount that would have been payable on a "life only pension" without survivor benefits. This would result in an increase to the monthly payment for the retiree. Women have a longer life expectancy than men. NFL players are forced to forgo up to 8 percent of their pension to bet that their wife will die before they do. Given the health issues that so many retired NFL players suffer from it seems that most NFL players would be hesitant to bet that their spouse will die before they do. In response to the previous comment:

NFL players already reduce their monthly pension payments up to 43 percent in order for their beneficiary, such as their wife, to continue receiving a monthly benefit if the NFL player predeceases his beneficiary. The reduction of benefits that is criticized on this website is a separate issue. This reduction is known as a “pop-up provision”. Under this “pop-up provision” NFL players who begin drawing their pensions after April 1, 2007, are being asked to pay up to an additional eight percent of their pension in order to fund this provision.

Under the “pop-up provision”, if a player’s wife dies before the NFL player, the player’s benefit will “pop-up” to the monthly amount that would have been payable on a “life only pension” without survivor benefits. This would result in an increase to the monthly payment for the retiree.

Women have a longer life expectancy than men. NFL players are forced to forgo up to 8 percent of their pension to bet that their wife will die before they do. Given the health issues that so many retired NFL players suffer from it seems that most NFL players would be hesitant to bet that their spouse will die before they do.

]]> By: Tim Voit http://retiredplayers.org/2008/03/31/nfl-retirement-plan-amendment-reduces-pension-payout-to-participants/comment-page-1/#comment-3257 Tim Voit Mon, 25 May 2009 12:24:57 +0000 http://retiredplayers.org/?p=42#comment-3257 Obviously who ever wrote this or has concerns about the 8% reduction is not familiar with how to fund and pay for benefits. You need to compare this plan to all other pension plans around the country to understand that without a reduction the NFL would be providing a free pension to a spouse, or someone else that hasn't been funded for. It also means that those that retired unmarried are getting less because the guys that are married get to provide a benefit for their spouse (paid over their lifetime for free). So where is the money to come from? So a reduction to provide a benefit is fair to the other players. The federal gov't has a 10% reduction in their pension and the military as well, but its not a penatly. Just means that if you want to provide a benefit for someone else (a non plan participant) it has to be funded somehow. So put things in perspective instead of providing mis-information.... or giving the impression someone is trying to screw somebody else. Obviously who ever wrote this or has concerns about the 8% reduction is not familiar with how to fund and pay for benefits. You need to compare this plan to all other pension plans around the country to understand that without a reduction the NFL would be providing a free pension to a spouse, or someone else that hasn’t been funded for. It also means that those that retired unmarried are getting less because the guys that are married get to provide a benefit for their spouse (paid over their lifetime for free). So where is the money to come from? So a reduction to provide a benefit is fair to the other players. The federal gov’t has a 10% reduction in their pension and the military as well, but its not a penatly. Just means that if you want to provide a benefit for someone else (a non plan participant) it has to be funded somehow. So put things in perspective instead of providing mis-information…. or giving the impression someone is trying to screw somebody else.

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