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.
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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.
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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.
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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:
MONTHLY PENSION BENEFIT
IF YOU RETIRE AT YOUR
NORMAL RETIREMENT DATE
APPROXIMATE MONTHLY
PENSION BENEFIT IF YOU
RETIRE EARLY TEN YEARS
PRIOR TO YOUR NORMAL
RETIREMENT DATE
APPROXIMATE MONTHLY
PENSION BENEFIT IF YOU
RETIRE EARLY FIVE YEARS
PRIOR TO YOUR NORMAL
RETIREMENT DATE
$300
$500
$150
$250
$200
$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
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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.
(b)
A reduced lifetime monthly pension payable for your life with the provisions that
if you die before receiving a fixed number of payments (60, 120 or 180),
payments will be continued to your beneficiary until the total number of these
payments have been paid to you and your beneficiary.
Election of any of the above options must be made in writing to the Plan Administrator in the
form and manner the Plan Administrator requires.
Additional information on these and other available options will be furnished upon request.
WHAT IF I HAVE PLAYED FOR MORE THAN ONE CLUB?
The benefits are payable to you regardless of the number of Clubs for which you play.
RETROACTIVE ANNUITY START DATE
If you receive your election form and a calculation of benefits under the Plan and, once you
submit your election forms, your pension payments will actually begin after the date your first
payment was scheduled to be paid, you may be able to elect a Retroactive Annuity Start Date
(RASD). If you choose a RASD, you will receive missed payments, plus interest, with your first
payment, rather than deferring your benefit until the date of your first payment. If you defer
your benefit, your monthly pension payments may be slightly higher. If you are married, your
Spouse must consent for you to elect a RASD.
CAN MY BENEFITS BE FORFEITED?
No. Once your benefits are vested (when you have three or more Years of Credited Service),
they cannot be forfeited, unless your benefits have been payable and unclaimed for two years and
you cannot be located. Any such forfeited benefits will be reinstated if a claim is made to the
Plan Administrator by a person entitled thereto.
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ARE THERE ANY DEATH BENEFITS?
Yes. In the event of your death before payment of your Normal Retirement Pension or Early
Retirement Pension becomes effective, your beneficiary will receive a pre-retirement Death
Benefit. This benefit will provide for the payment of retirement benefits to your Surviving
Spouse or Beneficiary (if consented to by your Spouse).
Your pre-retirement Death Benefit will be the greater of:
1.
The actuarially adjusted amount of your Normal Retirement Benefit based on your Years
of Credited Service earned to your date of death.
or
2.
(a)
If you die after age 45, 50% of the amount you would have received under a Joint
and Survivor Annuity had you retired on the day before you died, or
(b)
If you die prior to age 45, 50% of the amount you would have received under a
Joint and Survivor Annuity if you had survived to age 45 and then retired.
The pre-retirement Death Benefit will commence as soon as possible after your death, if you die
after age 45, or the first day of the first month following the date you would have reached 45, if
you die prior to age 45. Your Surviving Spouse may elect to receive a lump sum payment based
on the value of the monthly pre-retirement Death Benefit instead of receiving monthly payments.
HOW DO I MAKE A CLAIM FOR BENEFITS?
You may apply for benefits under the Plan by contacting the Plan Administrator. The Plan
Administrator will notify you of its decision on a claim within 90 days after the claim is properly
submitted. Under special circumstances, the Plan Administrator may take an additional 90 days
(180 days in total) to make a decision. If this extension is required, the Plan Administrator will
send a written notice giving the reason for the delay and the date it expects to reach a final
decision.
If your claim is approved, the Plan Administrator will provide information regarding the amount
of your benefit and the distribution options available to you, as well as the forms that must be
completed to request a distribution from the Plan.
WHAT IF MY CLAIM IS DENIED?
If your claim is denied, in whole or in part, the Plan Administrator will furnish you with a written
or electronic notice of this denial. This notice will contain the following information:
(a) the specific reason or reasons for the denial;
(b) reference to the specific Plan provisions on which the denial is based;
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(c) a description of any additional information or material needed to perfect your claim
and an explanation of why such information or material is needed; and
(d) a description of the procedures you or your beneficiary(ies) must follow to request
review of the denial and the time limits applicable to these procedures.
CAN I APPEAL A DENIED CLAIM?
Yes. If your claim is denied, in whole or in part, you may file a written request with the Plan
Administrator for a review of the denial in accordance with the following:
(a) Your written request must be filed with the Plan Administrator at the address listed in
the denial notice no later than 60 days after you receive written or electronic
notification of the denial. Failure to request a review within this period will result in
forfeiture of your right to appeal the claim denial, and the decision of the Plan
Administrator will be final.
(b) You or your authorized representative may submit written comments, documents,
records, or other information relating to your claim for benefits.
(c) You or your authorized representative may review and copy all documents, records,
and other information relevant to your claim, free of charge.
(d) Your request for review will be subject to full and fair review by the Plan
Administrator as designated in the initial denial notice.
The Plan Administrator will provide written notification of its decision on your appeal within 60
days after your appeal request is received. Under special circumstances, the Plan Administrator
may take an additional 60 days (120 days in total) to make a decision. If this extension is
required, the Plan Administrator will send a written notice giving the reason for the delay and the
date it expects to reach a final decision. If the extension is required because you need to provide
additional information to the Plan, the 60 day extension period will not begin until the
information has been provided.
WHAT IF MY APPEAL IS DENIED?
If your claim is denied on appeal, the notice will include the following information:
(a) the specific reason or reasons for the denial;
(b) reference to the specific Plan provisions on which the denial is based; and
(c) a statement that you are entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information
relevant to your claim.
The decision will be final and binding on you and all other parties involved; however, if you
disagree with the Plan Administrator’s decision and you have followed all of these claims
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procedures, you have the right to bring a civil action in a court of law under ERISA Section
502(a).
If you do not follow the general claims procedures described above, you will have no right to
bring action, at law or in equity, in any court, and the denial of the claim will become binding.
For more details on the claims procedures, contact the Plan Administrator.
The Plan Administrator shall act as a fiduciary in reviewing your claim and in making its
decision, with full discretion and final authority, to determine eligibility for benefits and to
interpret the provisions of the Plan applicable to your claim.
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GENERAL INFORMATION
Limitation of Assignment
Because your pension is designed to provide security during your retirement, your benefits are
not assignable or subject to the claims of any creditor, except to the extent provided by law.
However, all or part of your pension benefit may be paid to a former spouse or other alternate
payee if necessary to comply with a Qualified Domestic Relations Order (“QDRO”). A QDRO
is a state court domestic relations order relating to child support, alimony or division of marital
property. To be “qualified,” the order must comply with the provisions of Code Section 414(p)
and ERISA Section 206. You will be notified if a domestic relations order affecting your benefits
is received, whether it is a QDRO and the effect of that order on your benefits. Participants and
beneficiaries can obtain, without charge, a copy of the procedures governing QDRO’s by
contacting the Plan Administrator.
Plan and Contract Govern
The description in this booklet contains only the highlights of the Plan and is not intended to be
an official statement of the Plan. In the event that any statement in this booklet is not in
accordance with the Plan and the related Group Annuity Contract, the Plan and the Contract will
govern. The complete text of the Plan and Group Annuity Contract are available at any
reasonable time through the Plan Administrator.
Section 432 Restrictions
All benefits under the Plan are subject to the requirements of Section 432 of the Internal Revenue
Code (establishing rules for plans in endangered or critical status), to the extent the law applies.
Tax Advice
It is recommended that you consult a professional tax advisor before you make any decisions as
to when or how you will elect to receive your retirement benefits.
Pension Benefit Guarantee Corporation
Your pension benefits under this multiemployer plan are insured by the Pension Benefit
Guaranty Corporation (PBGC), a federal insurance agency. A multiemployer plan is a
collectively bargained pension arrangement involving two or more unrelated employers, usually
in a common industry.
Under the multiemployer plan program, the PBGC provides financial assistance through loans to
plans that are insolvent. A multiemployer plan is considered insolvent if the plan is unable to
pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due.
The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer
program, the PBGC guarantee equals the participant’s years of service multiplied by (1) 100% of
the first $11 of the monthly benefit accrual rate and (2) 75% of the next $33. The PBGC’s
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maximum guarantee limit is $35.75 per month times a participant’s years of service. For
example, the maximum annual guarantee for a retiree with 30 years of service would $12,870.
The PBGC guarantee generally covers (1) Normal and early retirement benefits; (2) disability
benefits if you become disabled before the Plan terminates; and (3) certain benefits for your
survivors.
The PBGC guarantee generally does not cover: (1) benefits greater than the maximum
guaranteed amount set by law for the year in which the Plan terminates; (2) some or all of the
benefit increases and new benefits based on Plan provisions that have been in place for fewer
than 5 years at the time the Plan terminates; (3) benefits that are not vested because you have not
worked long enough for the company; (4) benefits for which you have not met all of the
requirements at the time the Plan terminates; (5) certain early retirement payments (such as
supplemental benefits that stop when you become eligible for Social Security) that result in an
early retirement monthly benefit greater than your monthly benefit at the plan's normal
retirement age; and (6) non-pension benefits, such as health insurance, life insurance, certain
death benefits, vacation pay, and severance pay.
Even if certain of your benefits are not guaranteed, you still may receive some of those benefits
from the PBGC depending on how much money your plan has and on how much the PBGC
collects from employers.
For more information on the PBGC and the benefits it guarantees, ask your Plan Administrator
or contact the PBGC’s Technical Assistance Division, 1200 K Street N.W., Suite 930,
Washington, D.C. 20005-4026 or call (202) 326-4000 (not a toll-free number). TTY/TTD users
may call the federal relay service toll-free at (800) 877-8339 and ask to be connected to
(202) 326-4000. Additional information about the PBGC's pension insurance program is
available through the PBGC's website on the Internet at http://www.pbgc.gov.
ERISA RIGHTS
As a participant in the Plan you are entitled to certain rights and protections under the Employee
Retirement Income Security Act of 1974 (ERISA). ERISA provides that you (and all Plan
participants) shall be entitled to:
Receive Information About Your Plan and Benefits
Examine, without charge, at the Plan Administrator’s office all Plan documents, including
insurance contracts and collective bargaining agreements and a copy of the latest annual report
(Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the
Public Disclosure Room of the Employee Benefits Security Administration.
Obtain, upon written request to the Plan Administrator, copies of documents governing the
operation of the Plan, including insurance contracts, and copies of the latest annual report (Form
5500 Series) and updated summary plan description. The Plan Administrator may make a
reasonable charge for the copies.
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Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by
law to furnish each participant with a copy of this summary annual report.
Obtain a summary of the Plan’s annual financial report. The Plan Administrator is required by
law to furnish each participant with a copy of this summary annual report.
Obtain a statement telling you whether you have a right to receive a pension at normal retirement
age and, if so, what your benefits would be at normal retirement age. This statement must be
requested in writing and is not required to be given more than once every twelve (12) months.
The Plan Administrator must provide the statement free of charge.
Prudent Actions by Plan Fiduciaries
In addition, to creating rights for Plan participants, ERISA imposed duties upon the people who
are responsible for the operation of employee benefit plans. The people who operate your Plan,
called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and
other Plan participants and beneficiaries. No one, including your employer, your union, or any
other person, may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a pension benefit or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to
know why this was done, to obtain copies of documents relating to the decision without charge,
and to appeal any denial, all within certain time schedules.
Under ERISA there are steps you can take to enforce your rights. For instance, if you request a
copy of plan documents or the latest annual report from the Plan and do not receive them within
thirty (30) days, you may file suit in a federal court. In such a case, the court may require the
Plan Administrator to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the control of the Plan
Administrator.
If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit
in a state or federal court. In addition, if you disagree with the Plan's decision or lack thereof
concerning the qualified status of a domestic relations order or a medical child support order, you
may file suit in Federal court. If it should happen that Plan fiduciaries misuse the Plan’s money,
or if you are discriminated against for asserting your rights, you may seek assistance from the
U.S. Department of Labor, or you may file suit in a federal court. The court will decide who
should pay court costs and legal fees. If you are successful, the court may order the person you
have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and
fees, for example, if it finds your claim to be frivolous.
Assistance with Your Questions
If you have any questions about your Plan, you should contact the Plan Administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan Administrator, you should contact the nearest
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office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in
your telephone directory or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington, D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee Benefits
Security Administration.
ADDITIONAL IMPORTANT INFORMATION
Employers
The Denver Nuggets Limited Partnership
1000 Chopper Circle
Denver, CO 80204
Spurs Sports & Entertainment
One AT&T Center Parkway
San Antonio, TX 78219
Pacers Basketball, LLC
125 South Pennsylvania
Indianapolis, IN 46204
Brooklyn Nets
15 MetroTech Center 11th Floor
Brooklyn, NY 11201
Employer Identification
Number and Plan Number
Employer Identification Number: 41-0912496
Plan Number: 001
Plan Year-End
September 30
Type of Administration of
the Plan
The Plan is funded under a group annuity contract with Travelers Insurance
Company, and is administered by a Plan Administrator who is appointed by
the four former ABA Clubs.
Plan Administrator
American Basketball Association Players’ Retirement Plan
Plan Administrator
Spurs Sports & Entertainment
One AT&T Center
San Antonio, TX 78219
Attn: Heather Staples
If you write to the Plan Administrator, be sure to give enough information so
that your records can be located for a prompt reply. Give your name, address,
Social Security number, and team(s) for which you played.
Agent for the Service of
Legal Process
Legal process may be directed to the Plan Administrator.
Funding Medium
A Group Annuity Contract
Type of Plan
Defined Benefit Pension Plan
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