I’m sure you’ve heard of pensions in the NFL – the player’s retirement benefit. But have you ever wondered how they calculate the “credited season” for their pension? Let me break it down for you.
It all starts with the Credited Season rules: Players with three or more games of professional football qualify for a credited season. That’s it. Three or more games – and that counts as one of the 16 seasons required to qualify for a pension. Now, here’s where it gets a bit tricky. You don’t necessarily need to be on a 53-man roster for a credited season – you could be on IR, PU, or NFI. You could even have your contract terminated by a team and still qualify.
So how do they calculate the credited season for player’s pension? The NFL uses a formula that takes into account the number of years played, and also the number of games played in each season. The formula also considers games that were shortened due to special circumstances. The NFL also uses a separate formula to calculate the credited season for players who are no longer playing professionally.
If you’re still wondering why the credited season is important – it’s because it helps the NFL determine how much of the pension the player is eligible for. If a player has 16 credited seasons, they will be eligible for the maximum pension benefits. For instance, a player that has nine credited seasons will be eligible for 75 percent of the maximum benefits.
Now that we know how NFL credited seasons count towards a pension, it’s a good idea to do some research on the pension benefit plans available to make sure you’re fully informed. This can be a complicated matter, so it’s always a good idea to consult with a financial planner or accountant. They can help you make sure you’re getting the most out of your pension benefits.
As an ex-NFL player, I know first-hand how important a pension can be and how important it is to understand the rules and regulations so you can get the most out of it. It’s a long and complex process, but taking the time to learn about the system can definitely pay off in the long-run.
When it comes to taxation, NFL credited seasons count towards pension just like any other form of income. That means players who earn more credited seasons than the sixteen needed to qualify for the maximum pension are subject to the same taxation laws. So before you start counting those credits, it might be a good idea to consult a tax expert like a certified financial planner or accountant.
It also pays to consider whether the credited season is worth the effort. While the credited season can provide a steady retirement income, it can be difficult to calculate the value each year since it can vary from team to team. If you’re considering pursuing the credited season route, I definitely recommend speaking with a financial advisor first to make sure it’s the right decision for you.
Another thing to consider is the long-term effect. Unlike other forms of retirement income, the credited season benefits could end if the athlete chose to retire early. So if you’re counting on the credited season for your retirement, make sure you have a plan in place for when you’re ready to hang up your cleats.
Most importantly, remember that there are plenty of other ways to save for retirement outside of the credited season. Investing in a 529 plan, contributing to an IRA, or even opening a traditional savings account are all great ways to ensure that your retirement will be secure. No matter what route you decide to take, take the time to do your research and understand the process.