Dear Alumni:
Check out Gene Upshaw’s recent statements.
Gene Upshaw said he reads the harsh words and personal attacks from
former NFL players seeking improved disability and pension benefits.
That doesn’t mean he heeds them. “Guess what, I’ve been reading it,
and guess what, it doesn’t have any effect on what I will do tomorrow,
the next day and the next hour,” said Upshaw, executive director of
the NFL Players Association, following his annual Super Bowl news
conference today. “It’s just like water off a duck’s back. It had no
effect before and it will have no effect.” The NFLPA will not help
former players by dipping into the pensions of current ones, Upshaw
said. Friday, February 01 2008 Contributed by: Dennis Wyatt – TV
Sports Daily
IF GENE REALLY SAID THIS, THEN HE IS GROSSLY MISLEADING THE CURRENT
PLAYERS INTO BELIEVING THEIR PENSIONS WOULD BE REDUCED IF HE HELPED
RETIRED PLAYERS INCREASE THEIR PENSIONS. THIS IS JUST A SCARE TACTIC.
THE FACT IS, PENSION BENEFITS CANNOT BE REDUCED OR DIPPED INTO ONCE
THEY’VE BEEN NEGOTIATED AND SECURED. THE ONLY BENEFITS THAT CAN BE
RENEGOTIATED (INCREASED OR DECREASED) UNDER THE CBA ARE THE
FOLLOWING:
1) The Second Career Savings Plan (funds already in the Plan cannot
be reduced)
2) The Player Annuity Program (funds already in the Plan cannot be
reduced)
3) The NFL Players Health Reimbursement Account
4) The Tuition Assistance Plan
5) The Minimum Salary Benefit
6) The Performance Based Pool
7) Severance pay
8) Group insurance programs, including, life, medical, and dental
coverage Injury protection
9) Pre-season per diem amounts and regular season meal allowances
10) Expenses for travel, board and lodging for players participating
in off-season workout program
11) Payments or reimbursements made to players participating in a
Club’s Rookie Orientation
12) Moving and travel expenses
13) Postseason pay and salary paid to practice squad players pursuant
to a practice squad
14) The “88 Benefit” for former players suffering from dementia
15) Player medical costs
16) NFL Player Benefits Committee
AS YOU CAN SEE, GENE HAS MANY OPTIONS WHEN IT COMES TO FINDING MONEY
UNDER THE CURRENT CBA TO HELP INCREASE RETIRED PLAYER PENSIONS, BUT IT
IS UNLIKELY THAT HE, OR THE PLAYERS WOULD AGREE TO ANY REDUCTIONS IN
CURRENT BENEFITS.
IT DOESN’T MATTER……….TOTAL FOOTBALL REVENUES WILL CONTINUE TO
INCREASE DRAMATICALLY OVER THE NEXT DECADE SO THERE WILL BE MONEY
AVAILABLE.
THE QUESTIONS IS: WILL GENE UPSHAW AND THE CURRENT PLAYERS CONTINUE
TO INCREASE THEIR OWN BENEFITS?
HOW MANY CURRENT PLAYERS REALLY NEED A SECOND CAREER SAVINGS PLAN?
UNTIL THE NFLPA MADE IT AN AUTOMATIC DEDUCTION, QUITE A FEW PLAYERS
WEREN’T EVEN CONTRIBUTING TO THIS PLAN! HERE’S HOW IT WORKS….A
PLAYER PUTS IN $10,000 OF HIS OWN MONEY EACH YEAR AND THE OWNERS
CONTRIBUTE $20,000. THE OWNERS ARE CONTRIBUTING APROX. $30 MILLION A
YEAR TO THIS PLAN. IT WILL SOON SURPASS THE PENSION FUND IN TOTAL
ASSETS!
HOW MUCH MORE WILL IT TAKE TO SATISFY THE CURRENT PLAYERS WHEN THE
NEXT CBA IS NEGOTIATED.
Here is the projected Total income and benefits for a currently active
“average starting player” that plays over the 10 year period (2002 -
2011) which is the last capped year of the CBA.
NFL Salary: = $26,000,000 (Average starter salary 2.6 million for
each year from 2002-2011) This is a very conservative estimate based
on the current average salary for a starting player over the 10 year
period.
Annuity Plan: = $520,000 This is a deferred compensation plan.
Second Career Savings Plan: = $132,000 Effective in 2006 (this is
just the owner’s contribution)
Severance Pay Plan: = $132,000
Tuition Assistance Plan: = $45,000 for reimbursement of expenses
incurred for qualifying tuition, fees and books. This money can be
used while a player is still active and up to 3 years after they
retire.
5 Free Years of Health Insurance (Medical Benefits): = $60,000 ($1,000
x 12 months. x 5 years.) It’s hard to put an actual price tag on
this, but private coverage can cost anywhere from $500 to $2,000 a
month, so I’ve used $1,000 as an approx. amount. What does the NFL
actually pay the insurance company per covered person? I don’t know.
Health Reimbursement Plan: = $300,000 (Available after the 5 free
years of NFLPA Health Insurance, and only for players not involved in
an employers health care plan. Provides reimbursement payments from
the Plan to eligible players, their spouses, and dependents.) What is
the actual amount per player that is reimbursed through this Plan? I
don’t know.
The Total = $26 Million in salary and $1,189,000 in estimated eligible
benefits! This does Not even include the NFL Pension Plan, or the
interest that will be earned on the Second Career Savings Plan, or the
Annuity Plan!
Under the Pension Plan, this player would also receive $56,400 in
annual payments if they retired at age 55.
Does anyone really think that the above player is going to need a
Second Career Savings Plan?
If the past 15 years (1993 to 2007) was compared to a football game,
the NFLPA would have been flagged for piling on (benefits) for active
players. Granted, there have been modest increases for retired
players, but should we be satisfied with only about 1% of the gross
revenues going to Retired Players, Disabled Players, Widows and
Surviving Children ?
Don’t get me wrong, I think it’s great that players since 1993 have
been able to use the NFLPA to get the numerous benefits they now
enjoy…..but let’s not forget about the guys that came before.
Regardless of what Gene Upshaw tells us, there will be enough revenues
to continue to increase the pension plan for older players and that
should be a priority before any other new or increased benefits are
considered for current players.
I know I’ve said some of this before, but it doesn’t hurt to hear it
again from time to time.
Sincerely,
Jeff Nixon
