NFL Retirement Plan

There are many reasons why many NFL players expectedly rely on their retirement plans for sustenance. The most prominent cause may be the often difficult transition from being a well-paid NFL player to less-glamorous and less-profitable “retired” or “ex” NFL player. Usually, an NFL career is short and does not last longer than three and a half seasons. During this period, most players earn an average NFL salary of less than $1.2 million. Playing for three seasons is a must requirement to qualify for the pension’s vesting while the age of 55 serves as the NFL’s designated retirement age.

NFL players have a retirement system that effectively includes a disability plan and a pension plan. Like any other pension plan, the NFL pledges to promote financial securities for the lifetime of their employees. This is done by cutting down a portion of a player’s income together with compelling the NFL to contribute additional funds to save for retirement years. It is often difficult to save enough earning to account for future expenses. Therefore, by implicating a pension system, the saving headache goes to the NFL.

Let’s now go through the quality of benefits afforded by the NFL’s retirement plan. To start with, note that eligibility terms and benefit levels derive from collective bargaining between different bargaining representative and NFLPA. Today, the NFL retirement plan partly reflects the system’s historical progression. In the year 1959, the first ever agreement reflected a very modest retirement system for ex-players. Later on, the NFLPA and NFL collectively bargained into existence the “Bert Bell NFL Player Retirement Plan.” Under this plan, the quality of retirement benefits and other benefits such as disability was enhanced for eligible ex-players. Another alternative version was introduced known as “Pete Rozelle NFL Player Retirement Plan.” Five years later, these two plans were merged for enhancement purpose and were more easily called as the “New Plan.”

In addition to the “New Plan,” collective bargaining created the NFL Player Supplemental Disability Plan in 1993. This was to provide additional disability benefits along with the New Plan. Later the years, many negotiations were made to these plans to enhance the benefits provided to the NFL ex-players.

Moreover, NFLPA and NFL have recently enhanced the retirement plan. Implementations include a $7 million fund that will offer free surgery for joining replacement to uninsured retired players. They have also started the “88 Plan” named in honor of John Mackey. Further objective include establishing more local chapters of retired players, building a network for business contacts and second career, to raise funds for the Players Assistance Trust, etc.

Considering all the factors of NFL retirement plan since 1959 to date, the argument over whether the retirement system is bad or good, the answers are not easy.