A number of improved benefits for NFL players were negotiated as part of the 2011 NFL-NFLPA Collective Bargaining Agreement.
The benefits in the new CBA cover both past and present players as well as improve pensions for the oldest players, according to the NFLPA. Among the improvements are the “Legacy Benefit”; improving The 88 Plan (including amounts of the benefit for the 88 Plan) for players with dementia; new benefits for neurocognitive disabilities; 401(k) improvements and annuity.
“We at the NFLPA are certainly proud of the strides made in this Collective Bargaining Agreement,” said Miki Yaras-Davis, senior director of benefits at the NFLPA.
Although players sometimes don’t understand the nuances of their benefits package until a situation arises that requires them to do so, Yaras-Davis encourages all players—and their families—to spend sufficient time understanding them instead of waiting until they get older.
Experts have said that NFL players have the best benefits package among all U.S. professional sports, continuing that distinction since the 1993 CBA was signed. Players will continue to learn more from their union about the benefits gains achieved in the agreement.
“We’ll try our best to communicate better than ever the benefit improvements made in the CBA with the membership,” Yaras-Davis said.
The NFLPA is currently in the process of working through various issues concerning player benefits including implementation and other outstanding issues. A number of details like final specifics concerning the “Legacy Benefit” are being confirmed.
The new CBA gives a formal role regarding the players’ health care insurance plan; therefore, the NFLPA benefits department has attended the plan’s quarterly insurance trust meetings.
“We do have a large role with the active players, including membership education and if something very tragic happens,” Yaras-Davis said, emphasizing her colleagues’ work with former players on their benefits.
Among the CBA benefit improvements made are:
- Severance—$15,000 for 2011; $17,500 for 2012-2013; $20,000 for 2014-2016; $22,500 for 2017-2020
- Second Career Savings—Two-for-one matching contributions by clubs; $24,000 for 2011-2014; $26,000 for 2015-2018; $28,000 for 2019-2020
- Player Annuity Plan—$65,000 per player for 2011-2013; $80,000 per player for 2014-2017; $95,000 per player for 2018-2020
- Bert Bell/Pete Rozelle NFL Player Retirement Plan—Monthly benefit credit amounts at age 55: $470 for 2011; $560 for 2012-2014; $660 for 2015-2017; $760 for 2018-2020
- Health Reimbursement Account—$25,000 per player for each credited season from 2011-2015; $30,000 per player for each credited season from 2016-2020; total overall dollar limit increased from $300,000 to $350,000, starting in 2011
- Life Insurance—$600,000 for rookies; increasing $200,000 for each credited season up to a maximum of $1.6 million
Among the CBA benefits improvements made for former players are:
- The Former Player Life Improvement Plan, formerly the NFL Player Care Plan, continues to support vested former players with joint replacement, assisted living, prescription drug benefits, Medicare supplement benefits, spine treatment, neurological care and new life insurance benefits. The plan is now protected under the CBA and the NFLPA, for the first time, has the right to review and approve all future programs and any changes made to the existing programs.
- Players who left the game after 2006 now have increases to their health reimbursement account (HRA), 401(k) team contribution and tuition reimbursement assistance. Most importantly, the NFL group insurance, which covers life, medical and dental, will provide former players the right to purchase COBRA continuation coverage for the duration of the ten-year CBA.
- A Neurocognitive Disability Benefit was created for any vested former player who is suffering from any neurocognitive impairment. This benefit is special because, for the first time, former players do not have to demonstrate football causation to qualify. The benefit will payout for 15 years or until the former player reaches the age of 55. The benefit has two categories. The first category is for mild impairment. It pays $1,500 per month or 50 percent of the former player’s total benefit credit amount, whichever is greater. The second category is for moderate impairment. It pays $3,000 per month or 100 percent of the former player’s total benefit credit amount, whichever is greater. The benefit also reimburses up to $10,000 each year for covered medical care. The most incredible component of this benefit is that any vested former player with one credited season after 1994 is eligible.
- A new “Legacy Benefit” was created to provide increased pensions under the NFL retirement plan for vested players who played prior to 1993. Now, $620 million of an approximate $900 million, over the life of the ten-year agreement, will go towards substantially raising the pensions of these former players, thereby improving the quality of life for the union’s most senior members, whose legacy the organization stands upon today. Once the final pension payout is negotiated, these players will receive this benefit for the rest of their lives.
- The 88 Plan, designed to help players who are suffering from dementia and ALS and named after one of the greatest NFLPA presidents, the recently deceased John Mackey, was improved to include Parkinson’s disease. The maximum dollar amount of this benefit will also increase to $100,000 per year for players who are institutionalized and $80,000 per year for players who are able to live at home.
- The Disability Benefits were improved by having a qualified health care professional, appointed by both the NFLPA and the NFL, to cast the deciding vote on the Disability Initial Claims Committee for benefits. The NFLPA fought for this reform in the hopes that more of its former players will be able to get the disability benefits they deserve. Like the new Neurocognitive Disability Benefit, a former player will not have to prove that football caused the disability. There also were substantial increases in the dollar amounts for the four categories of this disability benefit.
- The Line of Duty Disability Benefit, designed to assist players whose bodies took a beating during their playing careers and now have a career-ending disability, but are not totally and permanently disabled, also was substantially increased going forward.
