The deferred Legacy Benefit calculation for former players ages 55 to 64

If you are a retired player between the ages of 55 and 64 (as of August 4, 2011) and you are still thinking about deferring their Legacy Benefit, the actuarial increase formula is a little different than the one I talked about in the article: When should you take your NFL Pension and Legacy Fund benefits? 

You would use the same chart (attached below) that is used for the regular Bert Bell/Pete Rozelle Pension and the Legacy Benefit, but you will need to calculate an “individual retirement factor” to accurately project what your deferred benefit would look like at certain ages from 55 to age 65. 

The individual retirement factor is calculated as follows: Your age (retirement factor) when you decide to take the benefit, divided by your age (retirement factor) on August 4, 2011. The official Retirement Plan office calculations are done using your age, to the exact day. 

For example, let’s say you were age 60 on August 4, 2011, but you want to see what your Legacy benefit would be at age 65.   

Here is how the “Individual Retirement Factor” is calculated, using the Retirement Factor Chart: 

2.619 (age 65 retirement factor) ÷ 1.573 (age 60 retirement factor) = 1.665 

You would then multiply 1.665 by your Legacy Benefit credit.   

The Legacy benefit credit for a player vested prior to 1993 is:  

        $124 per Credited Season before 1975

        $108 per Credited Season from 1975 through 1992 

For this example, let’s say you played from 1969 to 1976 and had 8 credited seasons.  Your Legacy Benefit credit would be ($124 x 6 + $108 x 2) = $960. 

The Legacy Benefit credit of $960 is then multiplied by the “individual retirement factor” of 1.665 to estimate the increased Legacy Benefit at age 65. 

Based on the example, the payment for a player 60 years of age who defers the Legacy benefit until age 65 would be approximately $1,598. 

The amount of the benefit could be further adjusted depending on which “election” you decide to take at the time of retirement. 

If you were 55 or older as of August 4, 2011 and you are deferring your Legacy benefit, you can use this same formula to calculate what your projected Legacy benefit payment would be at any given age from 55 up to 65. 

RETIREMENT FACTOR CHART                         

Age

Retirement Factor

55

1.000

56

1.091

57

1.191

58

1.305

59

1.431

60

1.573

61

1.733

62

1.913

63

2.118

64

2.352

65

2.619

 

This presentation is simplified to show how the basic calculation is done. As I mentioned previously, the exact calculations is done using your age – to the exact day.  You should always check with the NFL Plan Office to get an official projection of benefits. 

 

Advertisements

About Jeff Nixon

Jeff was a first team consensus All-American from the University of Richmond in 1978. He is 7th in NCAA history with 23 career interceptions. Played for the Buffalo Bills 1979-1984. Led the team with 6 interceptions in Rookie Year. Holds Bills record for 4 takeaways in a single game - 3 interceptions and a fumble recovery. Tied Bills record with four consecutive games with an interception. After 5 knee surgeries Jeff retired from pro football in 1985. He worked for 13 years (1988-2000) as the Youth Bureau Director for Buffalo and Erie County. He has worked for the past 11 years as the Youth Employment Director for Buffalo. Plays guitar and was voted best R&B guitar player by Buffalo Nightlife Magazine in 2006, 2007 and 2008.

Posted on March 23, 2012, in NFL Alumni News. Bookmark the permalink. 3 Comments.

  1. Jerry Sisemore

    When I made my decision on ‘when’ to begin the plan, my #1 Question ……..
    What is the estimated mortality/’death age’ for Our Alumni Brothers in
    this age group?

    I am told The NFL’s Long Term Care Insurance provider has this ‘date’..
    Please advise. Blessings Of Strength, jsisemore

  2. YOUR LONG TERM CARE INSURANCE REJECTED BOTH MY MYSELF AND MY WIFE DUE TO PREVIOUS ILLNESS!

    CORNELL GORDON

  3. Jeff, There are still players that have not received the election letters for the legacy fund administered by the Nflpa !! One of these is a 10 yr. veteran with Parkinson’s who can use the money. Carl Mauck

%d bloggers like this: