Major League Baseball Benefit Plans Presented by: Andrew Hill Blair Huang Ted Nocella Mike Wahls. Introduction. Comprehensive 3 Part Benefit Plan Part 1: Standard Pension Plan Part 2: Investment Plan Part 3: Health & Welfare Benefits. Introduction. As a whole,
As a whole,
Than the other Major Sports Leagues
Implemented since 1947
Expansion in 1966 by Marvin Miller
Gain more concession on 1972 strike
The compensation is considered generous!
Eligibility and requirements tends to be beneficiary to the players! (ex: 1 day vesting, early access allowed…etc)
Average 10-year retiree earns: $180,000
Apply on all the players, coaches, trainers
Compensation based on “active service” period and contract salary levels.
No specific formula. Benefits are determined by group table( year, classes..)
Accrual rules apply:
Fixed retirement benefit (pre-setup)
Assumed variable benefit (performance)
Before 1970: Normal retirement age: 65
After 1970: decrease to 62
Monthly minimum:$1,000 Max out to $185,000 yearly (10+ years )
Payout method: whole life annuity with option of endowment annuity for 120 payment guaranteed (subject to reduced half benefit)
According to the researches:
Career length is inversely associated with the risk of death, likely because those who play longer gain additional incomes, physical fitness, and training.
In addition: the life expectancy of MLB player is higher than other major leagues sports even than normal people.
Pension is real $!!