1. NFL Postretirement Plans Jackie Cullinan Jennifer Haddad Andrew Shin Karen Wang

2. Discussion Topics  NFL pension plan today as compared to the NBA and MLB  NFL retirement plan history  Issues with the retirement plan  Lack of representation  Conflict of interest

3. League Stats Compared  NFL brought in $7.1 million in 2007  NBA: $3.6 billion  MLB: $4.3 billion  Average NFL career is 3.5 seasons  NBA: 4.82 seasons  MLB: 5.6 years  Average NFL player salary is $1.1 million per year  NBA: $4 million per year  MLB: $2.8 million per year

4. Pension Plans Compared  Vested in NFL plan in 3 seasons  NBA: 3 seasons  MLB:  Retirement Benefits in 43 days  Medical Benefits in 1 day  NRA for NFL pension plan is 55 years old  NBA: 50 years old  MLB: 62 year old, pro-rated  Average NFL pension payout is $12,165 per year  NBA: $19,000 per year  MLB: $36,700 per year

5. Brief NFL Benefit History  1959 – First NFL pension plan  Changes result from negotiations between the NFLPA and NFL Management Council  Until 1993 CBA, changes were insignificant  Ex – 1982 CBA increased benefit credits by $5 per month, per credited season  The result: Modest salaries and negligible retirement benefits left players with little savings. The nature of football and lack of medical benefits left retirees with medical issues and bills that they had to cover themselves.

6. NFL Benefit Funding  A portion of NFL’s total revenues are allocated to players annually  Active players’ salaries  Active and inactive players’ benefits  Thus, as league revenues increase, funding can increase  The issue: Former players complain that they made the game what it is today, and today’s players are reaping the benefits

7. 1993 CBA – A Year of Change  Guarantee of over $1billion in pension, post- career, and health benefits for current and retired players  Retroactive pension increases  30% for pre-59ers and 40% post-59ers  Decrease in vesting requirements  From four credited seasons to three

8. 1993 CBA (continued)  Establishment of new programs  Retiree Medical Benefits  Second Career Savings Plan – 401(k)  Total and Permanent Disability Benefits  Selection of overseers for post-retirement plan  Plan Counsel – Groom Law Group  Plan Actuary – Aon Consulting

9. 1998 CBA  Extended 1993 CBA through 2003  Established annuity plan  Increased lowest benefit credit  From $80 to $100 per month, per credited season  Increased T&P disability benefit  Changed pension eligibility requirements  From five seasons to four

10. 2002 CBA  Extended 1998 CBA  Increased lowest benefit credit  From $100 to $200 per month, per credited season

11. 2006 CBA  Extended 2002 CBA through 2012  Tripled widows’ and surviving children’s benefits  Established Plan 88  Increased monthly pension amount of those who played 1983-2006 by 10%  Increased portion of revenues to players League SeasonPercentage 2006, 200757% 2008, 200957.5% 2010, 201158%

12. 2006 CBA (continued)  Increased lowest benefit credit  Post-retirement, active and inactive players must receive at least the following per month, per credited season Credited SeasonBenefit Credit Before 1982$250 1982-1992$255 1993-1994$265 1995-1996$315 1997$365 1998-present$470

13. Improvements Since 2006  2007 – Established benefits and programs  Health Reimbursement Account Plan  Cardiovascular Health Program  NFL Player Joint Replacement Benefit Plan  Provided assistance with living arrangements  2008  Provided additional medical assistance  Announced changes to T&P and LOD disability benefits

14. Criticisms of the NFL Pension Plan  Conflicts of Interest  Actuary  Retirement Board  Lack of representation

15. Conflicts of Interest - Actuary  Actuaries determine the necessary contributions by NFL owners to fully fund retirement plans.  Actuarial for NFL - Aon Consulting  Aon Consulting founder and Board of Director member are 20% owners of the Chicago Bears

16. Conflicts of Interest  Disability Benefits  Only 2% receive disability benefits  Eligibility  Cannot receive retirement benefits before NRA  “Total and Permanently Disabled”

17. Conflict of Interest – Retirement Board Is the player “totally and permanently disabled?” Determined by … 1) Neutral physician,  Appointed by the Retirement Board 2) Reviewed by two-person Disability Initial Claims Committee. 3) Appeal process:  Retirement Board  Medical Advisory Physician

18. Conflict of Interest  Problem?  Retirement Board is 6 members  3 - NFL Management Council  3 – NFLPA  BUT NFLPA delegated positions to Aon Consulting Karen

19. Conflict of Interest – Retirement Board Is the player “totally and permanently disabled?” Determined by … 1) Neutral physician,  Appointed by the Retirement Board 2) Reviewed by two-person Disability Initial Claims Committee. 3) Appeal process:  Retirement Board  Medical Advisory Physician Problem affects these areas

20. Lack of Representation  Comparison  NBA gave pre-1965 players an 50% increase in benefits  NFL gave pre-1982 a 25% increase in benefits and post- 1982 a 10% increase  Executive Director of NBPA, Billy Hunter:  “This is an important gesture and a tangible benefit for the pioneers of our league”  Former NFLPA executive director, Gene Upshaw hada different focus  “The bottom line is I don't work for them. They can complain about me all day long … But the active players have the vote. That's who pays my salary.”

21. Lack of Representation  Gene Upshaw was primarily concerned with helping current players during his tenure despite being a former player  Former players were getting less pension  Fewer older players are even eligible  NFL was not the multi-billion dollar industry it is today  Today, the NFL spreads the knowledge of saving and retirement to its rookies  Results in many former players going homeless

22. What’s Being Done?  Mike Webster, a Hall of Fame center who played for the Pittsburgh Steelers died in 2002  Was homeless at the time  Suffered from mental illnesses attributed from concussions during his playing days  Many players take out their pensions early – meaning they receive even less money  Concussions and a variety of other injuries can cause permanent long-term damage  Many former players rely solely on their pension checks as income – making them below poverty level

23. What’s Being Done?  While pension and other benefits have increased in recent years, it is still not enough  Several former players and organizations have established organizations or websites  Dignity after Football, Inc.  Fourth & Goal  Gridiron Greats  Hall of Fame Enshrine Assistance Fund  Hall of Fame Players Association  The John Mackey Fund, Inc.

24. What’s Being Done?  In 2007, Kyle Turley donated his game check to Gridiron Greats  Turley is quoted, in a New York Times article, as saying: “Are we going to wait until guys die? Are we going to wait until guys commit suicide before we make a difference and change this thing?”  Other players have taken similar steps in helping older, retirees  Additionally, former pro athletes Charles Barkley and John McEnroe have also made sizable contributions

25. What’s Being Done?  Mike Ditka asked each NFL team to donate 100k to help older retirees  Some teams sent in a measly $5,000 check  Older players are often forgotten despite their efforts into making the league what it is today  Better playing conditions today for athletes  Injury treatment, etc

26. Questions?