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Minor League Pension Plan

Minor League Players Pension Plan

So I was digging through some paper work just a minute ago and I found an old booklet of mine on the Minor League Players Pension Plan. I had it on my list of things to do and had actually made a few calls about the Minor League Pension Plan with no luck.

I was eager to see what all my hard work and dedication in the Minor Leagues had earned me as far as a Pension Plan was concerned. The 15 page booklet on the Minor League Pension Plan had tons of information on eligibility, benefits, vesting, and legalities. All that info looked interesting but I was more concerned with how much money I was going to get when I retired!

So here is the basic formula and basic requirements for all of you Minor League Baseball Players who were or are wondering like me. If you want more info or the full details send me a message and I’ll be sure to help you out. With that being said, show me the money!

“Your benefit in the Plan will be 100% vested after you have 5 years of Baseball Service.” From reading a little more in depth, it does seem that short season counts as one year of service time as long as you were on a roster and not in extended. Here’s the formula:

Club Service Benefit + NUPP Benefit + Twins Pension Plan Benefit = Your monthly benefit after you retire

Club Service Benefit: Minor League Level on August 1st


AAA $22 per month x Years of Club Service with AAA

AA $18 per month x Years of Club Service with AA

A or lower $14 per month x Years of Club Service with A or lower

Example: If you have three Years of Club Service with an AA Club and two years somewhere in the A ball levels, your monthly benefit will be $82 for your lifetime. This means the Plan will pay you a monthly benefit of $82 starting at age 65 for the rest of your life.

AA: $18 x 3 years = $54

A: $14 x 2 years = $28

Total: $54 + $28 = $82 per month for life beginning at age 65

BALLIN! Now here’s the tricky part. This Minor League Pension Plan (Club Service Plan) is only for January 1st of 2008 and after. That means, if you are like me and played before, or even through this time period, you are going to have a mix of two different Minor League Pension Plans.

NUPP Benefit (Minor League Pension Plan before January of 2008): So I got down to writing this part of the article and noticed that there was no information about the NUPP Benefit Minor League Pension Plan in my little booklet. I would be screwed if I couldn’t find the information for you guys. It would be a crappy article if I only covered 2008 and later (because it’s only 2010 right now as I’m writing this). But guess what? I remembered reading a pension plan in a similar booklet that I was given years ago, back in 2005.

So I got up off the couch and was ready to tear apart the house to find this info for you guys and you won’t believe it, it was the very first place I looked. It took me about 15 seconds to find it. What a great night! Now I can really see how rich I’m going to be when I retire!

The formula for the NUPP Benefit or Major League Baseball Pension Plan for Non-Uniformed Personnel Pension Plan for Minor League Players (I swear that’s what it says) is:

2% x Years of Club Service x Final Average Club Pay

Example: If you have 5 years of Club Service and you have Final Average Club Pay of $20,000, your pension will be $2,000 (2% x 5 x $20,000). This means you will get $2,000 every year from the Minor League Pension Plan beginning when you turn 65 and continuing until you die. Now this one is a little trickier to figure out.

First we have to find our Years of Club Service. To find our years of club service you take the months that you were on a roster in all your years. To be eligible to count a month, you have to be on the roster for at least one day during that month. So, say you played 4 full seasons and a short season and are eligible for all months. You would take 6 + 6 + 6 + 6 + 3 = 27 months. Now we have to divide this number by 12 which gives us 2.25 years of club service. To find the Club Pay we have to take our salary and multiply it by 12 and divide it by the months of club service for that year.

So if you are getting 10,800 for the 6 months of club service, you take 10,800 x 12 / 6 = $21,600. To find the Final Average Club Pay we have to take our 5 consecutive highest paid club pay years add them together and divide by 5. Let’s say for example our 5 consecutive highest paid club years were: $20,400, $20,700, $21,000, $21,300, and $21,600. Our final average club pay would be $105,000 / 5 = $21,000.

Now that we have all the necessary numbers, we can find what our NUPP Minor League Pension Plan will look like. Remember the formula is 2% x Years of Club Service x Final Average Club Pay. So, we will have 2% x 2.25 x $21,000 = $945 a year, which comes out to $78.75. Right around the same as the other Minor League Pension Plan listed above.

The last thing you would have to incorporate into your Minor League Pension Plan equations is if you played for the Twins at any point. I don’t have any of that information available but it seems that they had a little bit different of a Minor League Pension Plan. So, if you played for the Twins, sorry about your luck. I don’t know what to tell you.

If this was the best information you found on the internet about the Minor League Baseball Pension Plan, then please do me a favor and let any other baseball players you know or may be coaching know about this site. It’s got a ton of great information on it and I would love to see some of them stop by.

Thanks and I hope this helped answer some questions you guys had!