THE SIDELINES : NBA, Players Draft Age 30-50 Pre-Pension Benefit Program

The NBA and its players association agreed today to a pre-pension benefit plan that will provide revenue for retired players between age 30--or one year after retirement--and 50 when their regular pensions begin.

The plan will be funded from the 53% of gross revenues which the league is committed to paying to the players each year and was made possible because of the growth of those gross revenues. It will not alter salary caps set at $11.7 million, $12.5 million, $13.3 million and $14.2 million for the next four years.

The new program is designed as a mandatory savings plan with benefits calculated according to the number of years a player is in the league, his salary in relation to the salaries of all players, his age and the size of benefit pool.

“Our players will be provided for,” Commissioner David Stern said. “This is one area we have looked at wistfully over the years, to create a fund that would eliminate the specter of former NBA players who are destitute or short of living expenses.”

Each player receives approximately 8% of his salary as a contribution to the plan each year he plays, with the contributions above and beyond his regular salary.