If you are a former participant of the NBA Pension Plan and you elected to receive your retirement pension in a form other than a traditional Life Annuity (e.g., in a lump sum, in a fixed amount, for a fixed period, etc.), you may be entitled to further monetary benefits.
Since 1969, the NBA Pension Plan has been amended several times due to benefit formula increases and/or cost-of-living adjustments. These adjustments led to an increase in the total amount of the Normal Retirement Benefit. Players who elected to receive their retirement benefits in the traditional Life Annuity have continued to receive these increases and adjustments, resulting in a greater retirement pension.
If a retired NBA player elected to receive his retirement pension in a form other than the traditional Life Annuity, that alternative form was guaranteed in the NBA Pension Plan to be given in the form of an Actuarial Equivalent, a benefit of equal value to the Life Annuity, increasing as the value of the Life Annuity increases. However, for many players who chose an alternative to the Life Annuity, those alternatives have not been equal when financially compared to the Life Annuity values. This inequality between the Life Annuity and certain alternatives results from the NBA Pension Plan failing to pay benefit formula increases and cost-of-living adjustments, in violation of federal law.
A player who elected to receive benefits in an alternative form, and is no longer receiving benefits, may be entitled to further monetary benefits due to the above mentioned increases.
If you suspect that you may be owed further retirement benefits under the NBA Pension Plan, contact Melancon | Rimes at (225) 303-0455 today for more information.