Chrysler and the NFL:

What do Chrysler and the NFL have in common? A defined benefits plan and participation in the global economy.

Definitions:
Defined benefit plans "promise(s) you a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service - for example, 1 percent of your average salary for the last 5 years of employment for every year of service with your employer." (Department of Labor - Employee Benefits Security Administration).

The Pension Benefit Guaranty Corporation (PBGC) was created as a result of the passage of the Employee Retirement Income Security Act of 1974 (ERISA).

ERISA was designed to protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire. ERISA does not require any employer to establish a pension plan. It only requires that those who establish plans must meet certain minimum standards. The law generally does not specify how much money a participant must be paid as a benefit. It is dependent upon the terms and conditions of the participant's defined benefits plan.

The Link:
As many of you know, Chrysler and GM are fiscally 'disabled' as a result of the economy and other factors. Both have defined benefits plans that are insured by PBGC under ERISA. The issues at GM and Chrysler may seem far removed from the active and retired player population. There may not seem to be a correlation and impact upon the active and retired players; yet, from an economic standpoint the pension plans of these two multinational corporations does impact the NFL active and retired player benefits.

How? It is dependent upon WHERE the retirement fund invested your retirement dollars. Public corporations that do business globally purchase parts and supplies from a variety of smaller corporations. There is an interdependence in the global enonomy for success. If the retirement fund took a hit based upon the current global economic landscape; then the pension and disability plan took a huge hit also. It is up to the plan administrators to resolve the plan underfunding. Remember, no longer is one national economy independent of another. We are a global economy and community.

In an effort to determine where the NFL's pension and disability plan is heading, the representative from the plan administration in Baltimore was asked at the Retiree Summit if there were plans in the works to resolve the plan underfunding? The plan representative, indicated to a room full of retirees 'no' it was in the "yellow".

Be concerned over the state of your retirement and disability plan. NFL annuitants and disability annuitants need to keep an eye on the state of their pension plan. Resolving the plan underfunding is critical to the health of the retired player's benefits. Attached is a list of various plans that are being monitored or have been taken over by PBGC. US Steel and Pan Am were taken over in the mid 1990's.

PBGC NEWS:
PBGC Seeks Recovery on Behalf of Tom's Foods Inc. Pension Plan (June 11, 2009)
PBGC Assumes Amsterdam Memorial Hospital Pension Plan (June 11, 2009)
Chrysler Pension Plans Continue Under New Company Sponsorship (June 10, 2009)
PBGC Protects Pensions at Milacron Inc. (June 10, 2009)
GM Pension Plans Remain Ongoing During Company Bankruptcy (June 01, 2009)
PBGC Assumes Circuit City Retirement Plan (May 27, 2009)
PBGC Moves to Protect Contech Pension Plan (May 26, 2009)