Update: NFL and Referees Settle 401(k) vs. Pension Question
By Brian Halligan on September 27th, 2012
The comedy of errors (or tragedy, depending on your point of view) is over for NFL teams and their fans. A tentative agreement has been reached between the league and its referees. One of the main sticking points had been whether the refs’ pension plan would be dropped in favor of a 401(k) plan. The result was no surprise: a compromise.
According to the Chicago Tribune, “Under the proposal, the current defined benefit pension plan will remain in place for current officials through the 2016 season or until the official earns 20 years’ service. The defined benefit plan will then be frozen.”
So, the refs nearing retirement will keep their pension, and those coming up will most likely transition to a 401(k) in the future. To find out why many businesses are choosing to offer their employees a 401(k), read our previous post, “Under the Hood of the NFL Referee Strike: Pension or 401(k) Plan?”