NFL players will get a major boost to their retirement benefits with a $25 billion plan to offset the effects of a $400 billion national pension program.
The plan, which the NFL announced on Tuesday, will be funded by a combination of a combination-of-funds program, a pension fund and a surcharge on the value of player’s stock, the NFL said in a statement.
Players will receive a $2,500 annual salary for the first two years of their career and a $5,000 base salary each year for the next three years.
The average NFL player’s first year’s salary will increase to $10,000, the league said.
“This will help provide a cushion in retirement for players who have contributed to the national pension fund but are not making the required contributions to the NFL pension plan,” said NFL Commissioner Roger Goodell in the statement.
The new plan will provide players with a pension of $75,000 per year and will provide $2.2 billion in retirement benefits over the next 25 years, according to the league.
The NFL is the only NFL league that does not require players to make contributions to a pension, which is a popular way to raise money for the league and its players.
The pension fund is expected to have a $4.8 billion surplus, or about $1.6 billion per year, by the end of 2022, according a report released by the AFL-CIO, which represents many of the NFL’s players.
A new pension plan for all NFL players, including the players who were not drafted, will cost $5.8 to $7.4 billion, the AFL said.
The NFL is also planning to pay the costs of new stadium projects, including one planned in New Orleans, the report said.NFL Commissioner Roger “Mack” Goodell, center, speaks during a press conference in New York, on March 12, 2021.
The AFL-, NFL, and the NFL Players Association announced Tuesday a $7 billion pension plan to help support players in retirement, which will pay out $5 billion over 25 years.
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