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American Basketball Association Players’ Retirement Plan Summary Plan Description

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American Basketball Association Players’ Retirement Plan Summary Plan Description AMERICAN BASKETBALL ASSOCIATION PLAYERS’ RETIREMENT PLAN SUMMARY PLAN DESCRIPTION October 2014 To all eligible persons, We are pleased to present you with this booklet which outlines the benefits available under the American Basketball Association Players’ Retirement Plan. The Plan has been in effect since October 1, 1970 and has been amended to comply with new federal laws and the conditions set forth by the court which approved of the settlement of the litigation between the ABA Players Association and the NBA, which resulted in four former ABA teams becoming members of the NBA. The Plan is funded under a Group Annuity Contract with the Travelers Insurance Company, which invests the Plan’s funds. This booklet uses simpler language than the official Plan but it does not and cannot change the meaning or intent of the official Plan. Words that begin with capital letters have special meanings under the terms of the Plan. To help you understand the Plan – and to show what the Plan means to you – we have had this booklet prepared to answer some of the questions we thought you might have. If we have forgotten any, please tell us and we will be happy to provide an answer for you. 1 WHAT IS THE EFFECTIVE DATE? The Plan became effective October 1, 1970, but has subsequently been amended and restated several times. If you terminated employment prior to one of the dates of amendment, your rights and benefits will generally be determined on the basis of the Plan in existence at the termination of employment, unless the subsequent amendment specifically provides otherwise. WHO IS ELIGIBLE TO PARTICIPATE IN THE PLAN? A Player employed by a Member Club of the ABA on or after October 1, 1970, but before September 14, 1976 (the Date of Expansion), is eligible to participate in the Plan. WHO ADMINISTERS THE PLAN? The Plan will be administered by a Plan Administrator who is appointed by a majority of the former ABA Clubs. WHAT IS A YEAR OF CREDITED SERVICE AND HOW IS IT DETERMINED? Your Years of Credited Service equal the sum of your Years of Service and your Years of Past NBA Service. You receive one Year of Service for each Playing Season that you were employed by a Member Club of the ABA prior to the Date of Expansion or by a Member Club of the NBA after that date if you were employed by an ABA Club at the beginning of the 1975-76 ABA Playing Season. Unless special circumstances apply, including injury sustained as a direct result of a basketball game or practice, you must be on the active player roster of one or more Member Club for at least one half of the regularly scheduled league games of the Member Club(s) to receive a Year of Service for the Playing Season. You also receive one Year of Past NBA Service for a Playing Season in which you were employed by a Member Club of the NBA before being employed by a Member Club of the ABA. HOW MANY SEASONS MUST I PARTICIPATE IN ORDER TO QUALIFY FOR THE PENSION BENEFIT? In order to receive a pension benefit, you must have three Years of Credited Service. Your Years of Credited Service for vesting purposes will not be reduced even if you are receiving credit for those years under the NBA Pension Plan. WHEN WILL MY PENSION BEGIN? Your monthly pension payments will begin on your Normal Retirement Date. If you are credited with a Year of Service after the beginning of the 1972-73 ABA Playing Season but not after the beginning of the 1976-77 NBA Playing Season, your Normal Retirement Date is the first day of the month following the month in which you attain age 55. If you were on the roster of an ABA Member Club at the beginning of the 1975-76 ABA Playing Season and are credited with a Year of Service after the Date of Expansion, your Normal Retirement Date is the first day of the month following the month in which you attain age 50. In any other case your Normal Retirement Date is the first day of the month following the month in which you attain age 65. 2 DO I HAVE TO CONTRIBUTE TO THE PLAN TO RECEIVE BENEFITS? No. All contributions are made by the former ABA Member Clubs. HOW MUCH WILL MY NORMAL RETIREMENT PENSION BE? If your last Playing Season occurred before the 1976-77 NBA Playing Season or, if it occurred after the 1976-77 NBA Playing Season but you were not on the active playing roster of any ABA Member Club (including the Baltimore Claws) at the beginning of the 1975-76 ABA Playing Season, your monthly pension at Normal Retirement Date will be the sum of (1) $60 times the number of your Years of Past NBA Service (but only if you are not entitled to receive benefits from the NBA Pension Plan for the same year) plus (2) $60 times the number of Years of Service (but only if you are not entitled to receive benefits for a Playing Season after the Date of Expansion from the NBA Pension Plan), and in no event more than $600 per month. If your last Playing Season ended after the beginning of the 1976-77 NBA Playing Season and you were on the active playing roster of any ABA Member Club (including the Baltimore Claws) at the beginning of the 1975-76 ABA Playing Season, your monthly pension at Normal Retirement Date will be the sum of (1) $117 times the number of Years of Past NBA Service (but only if you are not entitled to receive benefits from the NBA Pension Plan for the same year) plus (2) $117 times the number of Years of Service (but only if you are not entitled to receive benefits for a Playing Season after the Date of Expansion from the NBA Pension Plan). This benefit has been increased to reflect a cost-of-living adjustment. IS EARLY RETIREMENT PERMITTED? Yes. You may elect to begin receiving an Early Retirement Pension at any time on or after the first day of the calendar month following the calendar month during which you reach age 50, except that if you have a Year of Service after the beginning of the 1972-73 ABA Playing Season, you may elect to begin receiving an Early Retirement Pension on or after the first day of the calendar month following the calendar month during which you reach age 45. Your election of an Early Retirement Benefit must be made in writing to the Plan Administrator at least 90 days before you wish your pension to begin. 3 HOW MUCH WILL MY EARLY RETIREMENT PENSION BE? The amount of Early Retirement Pension is determined in the same manner as a Normal Retirement Pension, but is reduced because payments begin sooner and you may expect to receive them for a longer period of time. For example: APPROXIMATE MONTHLY APPROXIMATE MONTHLY PENSION BENEFIT IF YOU PENSION BENEFIT IF YOU MONTHLY PENSION BENEFIT RETIRE EARLY TEN YEARS RETIRE EARLY FIVE YEARS IF YOU RETIRE AT YOUR PRIOR TO YOUR NORMAL PRIOR TO YOUR NORMAL NORMAL RETIREMENT DATE RETIREMENT DATE RETIREMENT DATE $300 $150 $200 $500 $250 $333 ARE THERE ANY DISABILITY BENEFITS? If you became totally and permanently disabled while employed as a Player you will be entitled to receive a Normal Retirement Pension at your Normal Retirement Date, as provided above. You will receive this benefit without regard to whether you have qualified for a pension benefit by having three Years of Credited Service. If you become totally and permanently disabled after you cease to be employed as a Player and prior to your Normal Retirement Date, you will receive, on the first day of the month next succeeding the Plan Administrator’s determination that you are disabled, your Normal Retirement Pension reduced to reflect the fact that payments are being made over a longer period of time. HOW WILL MY PENSION BE PAID? If you are single at your Retirement Date, unless you elect otherwise, your benefits will be payable in the form of a Life Annuity, providing you with monthly payments for your lifetime. If you are married at your Retirement Date, unless you elect otherwise, your benefits will be payable in the form of a Joint and Survivor Annuity, providing you with reduced monthly payments for your lifetime and continuing monthly payments of 50%, 75% (the Qualified Optional Survivor Annuity) or 100% of your benefits to your Surviving Spouse for his or her lifetime. If you are married, you must designate in writing to the Plan Administrator the percentage of your retirement benefit to be payable to your Surviving Spouse upon your death. If you do not make an election prior to your Normal Retirement Date you will be deemed to have elected the 50% continuation option. If you are married, and you elect to receive your benefits in a form other than a Joint and Survivor Annuity or Qualified Optional Survivor Annuity you must make such election in 4 writing and your Spouse must consent in writing within the 90-day period before benefits are to commence to such election and to a beneficiary other than your Spouse, if any. Your Spouse’s consent must be properly notarized. Your benefit should begin no later than the first day of April after the calendar year you reach age 70 ½. ARE THERE OPTIONAL FORMS OF PENSIONS? Yes. Instead of receiving a Life Annuity or a Joint and Survivor Annuity, if married, you may elect to receive payment in one of the following ways: (a) A lump sum payment based on the value of your monthly pension.
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