Article 59Severance Pay
Section 1. Eligibility and Maintenance
The current terms of the NFL Player Severance Pay Plan (“Severance Plan”) shall continue, except as amended below, and all past and future amendments thereto as adopted in accordance with the terms of that Plan, are incorporated by reference and made a part of this Agreement; provided, however, that the terms used in such Plan and the definitions of such terms are applicable only to such Plan and shall have no applicability to this Agreement unless the context of this Agreement specifically mandates the use of such terms. The Severance Plan will be continued and maintained in full force and effect during the term of this Agreement and at all times comply with the terms of this Article. Only players with two or more Credited Seasons (as that term is defined in the Bert Bell/Pete Rozelle NFL Player Retirement Plan), at least one of which is for a season commencing in 1993 or later, will be eligible for severance pay under this Plan. This Article will not extinguish or affect any other rights that a player may have to any other severance pay. Determinations of the Retirement Board with respect to Credited Seasons will be final and binding for purposes of determining severance pay.
Section 2. Amount
Each eligible player will receive severance pay in the amounts determined as follows: >
Credited Season(s) Severance Amount per Credited Season 1989-1992 $5,000 1993-1999 $10,000 2000-2008 $12,500 2009 $15,000 2010 $0 2011 $15,000 2012-2013 $17,500 2014-2016 $20,000 2017-2019 $22,500 2020-2022 $30,000 2023-2025 $35,000 2026-2028 $40,000 2029-2030 $50,000
Section 3. Payment
Severance pay under this Article will continue to be paid in a single lump sum payment by the NFL Club with which the player last earned a Credited Season. The payment will be made automatically on the last day of the calendar quarter in which the eligible player’s “separation from service” as defined in the Severance Plan and within the meaning of Internal Revenue Code Section 409A, occurs, unless his separation from service occurs within twenty (20) days of such date, in which case his severance pay will be paid on the last day of the next following calendar quarter.
Section 4. Second Payment
Any player who returns to NFL football after receiving a severance payment under this Article will still be entitled to further severance pay based solely on his subsequent Credited Seasons.
Section 5. Payable to Survivor
In the event a player eligible to receive severance pay under this Article dies before receiving such pay, the player’s designated beneficiary (or his estate in the absence of a designated beneficiary) will be entitled to receive such pay on the later of (a) the next payment date following the date of the player’s death, or (b) thirty (30) days after written notification of the player’s death..
Section 6. Administration
The NFL shall continue to administer the Severance Plan. The NFL shall not change any benefit provided under this Article 59 without the consent of the NFLPA.
Section 7. Non-assignability
The right to receive payment hereunder shall not be assignable, transferable or delegable, whether by pledge, creation of a security interest or otherwise, and in the event of any attempted assignment, transfer or delegation, the Clubs will have no liability to pay any amount so attempted to be assigned, transferred or delegated. Neither the NFL nor any NFL Clubs will have any obligation to verify other than to the NFLPA upon request the amount of severance pay a player may be entitled to receive, unless and until an application for pay is properly submitted by such player. Notwithstanding the preceding, (1) a player’s severance pay will be assigned and paid to an “alternate payee,” under a court order that satisfies the essential requirements to be a “qualified domestic relations order” within the meaning of Internal Revenue Code Section 414(p); and (2) a Club may offset against severance pay, at the time of payment, amounts to the extent permitted by Internal Revenue Code Section 409A and the regulations thereunder.