Upshaw says the NFLPA will not help former players by dipping into the pensions of current ones

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, inc. life, medical, dental coverage Injury protection
9) Pre-season per diem amounts and regular season meal allowances
10) Expenses for travel, board & lodging for players participating in off-season
11) Payments 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 14) The "88 Benefit"
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.

Severance Pay Plan: = $132,000

Second Career Savings Plan: = $132,000 Effective in 2006 (this is just the owner's contribution)

Annuity Plan: = $520,000 This is a deferred compensation plan.

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
Buffalo Bills Alumni