retirement

Retirement benefits of professional athletes

Retirement: National Basketball Association
Retirement benefits: National Basketball Association

National Basketball Association members are eligible to participate in a defined benefit pension plan and become vested in their benefit after three years of service in the NBA. The normal retirement age under the pension plan is 50. At this age, an unmarried retiree with the minimum three years of service would receive an annual benefit of approximately $19,160, while a retiree with 10 years of service or more would collect an annual benefit of $63,866.

For players who elect to defer collection of their benefit to age 62, unmarried retirees with three years of service would receive annual benefits of $61,499 and retirees with 10 years of service or more would collect annual benefits of $205,000, the maximum allowable by law.

In addition to the pension benefit, an optional 401(k) plan provides a generous employer match.

In October 2013, a new post-career income plan for players was launched, which generally provides for annuities to be purchased on behalf of eligible players each season that will pay monthly income to players following the termination of their NBA playing careers through age 50. The first contributions to purchase annuities were made in December 2013.

 

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