Pension Scheme Changes
Professional Footballers’ Pension Scheme
The Finance Act 2004 has had a significant effect on professional footballers’ pension arrangements when it came into force on 6 th April 2006 (A-Day). Despite constant lobbying from the PFA and other professional Players’ Associations, the Government introduced new pension legislation removing the special exemption given to sportsmen to enable them to receive their pensions at an earlier age than 50.
As a result of this legislation, the Trustees of the Players’ Non-Contributory Cash Benefit Scheme (CBS) and the Football League Players’ Retirement Income Scheme (FLPRIS) decided it was in the best interests of the members that the two schemes merged into one Scheme called the Professional Footballers’ Pension Scheme (PFPS).
The Scheme, which is sponsored by the FA Premier League and Football League and operated in association with the PFA, provides valuable benefits for players and their dependants during and after their playing career. The Scheme is available to footballers that are registered with a club in the FA Premier League, the Football League or the Conference League (provided the Conference League club was previously in the Football League).
All benefits accrued by players under the previous Schemes (CBS and FLPRIS) before A-Day are protected and players who were members of these schemes before A-Day will retain their retirement age of 35. New entrants to the PFPS after A-Day are now eligible to take their pension benefits from age 55.
The new PFPS has two sections – a Cash Benefit section and an Income section.
Cash Benefit section
- No player contributions are required in this section.
- Benefits are accrued in the Cash Benefit section based on 3.75% of a player’s full taxable salary including all bonuses (capped at £108,800).
- To obtain full accrual through the Cash Benefit section, players are required to contribute 3.75% of their basic annual salary to the Income section (capped at £108,800).
Income Section
- Players can decide upon the level of contributions to the Income section (subject to revenue maximum limits).
- Although membership of this section is voluntary, players are strongly advised to contribute the minimum 3.75% of their basic annual salary to ensure the accrual of the non-contributory benefits under the Cash Benefit section.
Pension Benefits
When taking the pension benefits, all accrued benefits from April 2006 of both the Cash Benefit and Income sections are added together. 25% of the fund can then be taken as tax-free cash and the remaining 75% is then used to provide a pension.
Death Benefits
The Scheme provides death benefit to all professional contract players at Premier and Football League clubs. In the unlikely instance of a death of a player then a sum equal to 4 times annual salary (capped at £108,800) plus any value of funds in the Income section would be paid by the Scheme’s Trustees to the player’s dependants.
This overview is only a brief summary of the PFPS. However, if further detailed information or clarification is required then please contact either Simon Barker or Richard Jobson at the PFA on 0161 236 0575, or alternatively contact the Scheme Secretary.
Stephanie Wroe
Secretary to the Trustees
C/o The Football League
Edward VII Quay
Navigation Way
Preston
Lancashire
PR2 2YF
Tel: 0870 4420 1888
E-mail: swroe@football-league.co.uk
Further information is available and application forms can also be downloaded on the following websites:
It is strongly recommended that when players are taking decisions on their pension arrangements that independent financial advice is taken.
Click on the links below to download the document
The Professional Fooballers' Pension Scheme
Members' Booklet
Members' Booklet Summary
Explanatory Report to Players' IFA's
Q&A Document
Application Form for Joining or Re-Joining
Change of Contributions Form
Change of Investments Form
Nomination of Beneficiaries Form
Announcement to Members - March 3rd 2006
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