Pensions for Boxers: Let's Get It On!

"Feel Good" stories are nice to write and hopefully$30,000 in purses out of a total purse amount in
nicer to read. This is not such an article. This isCalifornia during one year of $900,000, your part
one that indicts and condemns the boxingwould be 3% of the amount contributed for total
establishment, politicians and government officialspurses. In addition, money may be added to your
for failing to address in a decisive manner an issuepension account from forfeiture of pension
that has been neglected far too long.accounts of boxers who fail to become eligible for
Too many boxing stories seem to end wrong.benefits. See "break in service" below.
Great fighters who have thrilled us over the7. What Happens if I Have a Break in Service?
years, whether fighting for a championship belt orA break in service means that you failed to fight
at a local club, face retirement without any kindat least 10 scheduled rounds in California during
of financial assistance or access to medical care.any 36 months in a row and before you turned
Many suffer from depression, alcohol and55.
substance abuse, rage disorders, homelessness orIf you have a break in service before you are
being indigent, bankruptcy (even the great Joeeligible to receive benefits, then the money in
Louis died penniless), and a total lack of financialyour pension account is taken out and divided
awareness. Few even know how to engage basicamong the other boxers. This is called a
investment vehicles or where to go for help."forfeiture".
Some suffer from the terrible effects of boxer'sIf you have a break in service after you are
syndrome (pugilistic dementia). In this connection,eligible to receive benefits, then your pension
Bobby Chacon, about whom I have written in theaccount is put on inactive status. This means you
past, Willie Pep, Jimmy Ellis, Wilfredo Benitez andwill not continue to share in the division of
the late Jimmy Young come to mind. When hepromoter contributions, but money will still be
died in June at age 55 in an assisted living centeradded to your account from forfeitures, if there
in California, Mike Quarry tragically followed hisare any.
brother. Jerry, who was 53 when he passed8. Can I Give My Benefits to Someone Else?
away in January1999 in a hospital in Templeton,You cannot sell, transfer, pledge or in any way
Calif. Among their afflictions, both suffered fromgive away your benefits to anyone else before
the dreadful pugilistica dementia. Jimmy Lesterthey are paid to you. In addition, your benefits
just passed away. Some, like Greg Page or Geraldcannot be taken from the plan by anyone else to
McClellan, have been injured in the ring; somethingpay for debts, contracts, liabilities or any wrongs
that can occur in a split second. For manyyou committed. You can, however, choose
ex-fighters, a combination of these factors cansomeone else to receive your benefits upon your
make for a dismal outlook.death.
Of course, there are many stories that end the9. How Do I Apply for Benefits?
other way....Harry Arroyo, Jerry Cooney, JohnYou or your beneficiary can ask the commission
Scully, Larry Holmes, Dana Rosenblatt , Alexfor information about rights and benefits and the
Ramos and Virgil Hill, to name a few and I havecommission will provide you with a reply in writing
written about many of them.within 30 days.
That said, my message here is a stingingYou or your beneficiary must file a written claim
indictment of the boxing establishment, particularlyfor benefits with the commission. The commission
those promoters and officials who seem tomust say in writing within 30 days whether the
remain unmoved in their single minded quest toclaim is complete. The commission has 60 days
make money from the sport without giving backafter receiving a complete claim to make a
to those who generated the money in the firstdecision in writing and provide it to the claimant. If
place. Professional hockey players, baseballthe commission denies your claim for benefits, it
players, football players and soccer players, tomust give you the reasons it denied the claim and
name just a few, all have great benefit packagesstate the specific parts of the plan on which it
including pension features. In a word, boxers havebased its denial. The commission must also explain
none, and it's been that way too long. But ithow it reviews denied claims.
doesn't have to be.11. How Do I Ask for Review if a Claim is Denied?
How difficult can it be to set up a plan similar to aIf the commission denies a claim for benefits, you
401k scheme in which a small percentage of eachor your beneficiary can ask the commission in
purchased ticket (including PPV) is transferred intowriting to review the denial. This request has to
a central fund and matched in some equitablebe made within 90 days after you receive the
manner by fight promoters? I submit that withdenial. The commission must notify the claimant in
the appropriate expertise and financial assistance,writing that it has received the request for review
this would not be difficult at all. But it is not myand that the person has 30 days to give the
purpose here to define the specifics (I.e., eligibility,commission a written statement and any
trustees, pay-out features, annuities, matching's,documents that he or she feels support the claim.
lump sum conversions, etc) of how such a planThe commission must look at the whole record
could be structured (though I believe I could doand make a decision no later than 30 days after
that without too much difficulty). Suffice to saythe person's deadline to give information to the
translating the concept to reality is long overduecommission. If the commission again denies the
and each day that boxers go without suchclaim, its written decision will give you or your
needed assistance is a shameful day for boxing.beneficiary the same kind of information it gave
As Jack Newfield states in his article entitled, "Theyou the first time the claim was denied.
Shame of Boxing" (posted on the web in October12. Who Do I Contact for More Information?
25, 2001, "I have known a lot of fighters and likedYou can obtain more information about this
almost all of them. They have no pension, nopension plan from the California State Athletic
union, no health insurance, no voice. For everyCommission. The address and telephone number
George Foreman who gets rich, there are 1,000is:
you never hear of who end up with slurred1424 Howe Avenue, Suite 33
speech, failing memory and an empty bankSacramento, CA 95825-3217
account."(916) 263-2195
Sure, there are other extremely importantIn an inevitable bureaucratic debacle, a Joint
variables that come into play such as the possibleCommittee recommended on April 12th, 2005
role of unions (the Teamster affiliated Jointthat the State Athletic Commission should sunset
Association of Boxers), the Professional Boxing(i.e., disband) and its functions and duties be
Safety Act of 1996, the Muhammad Ali Boxingtransferred to the Department of Consumer
Reform Act, the Professional BoxingAffairs. There was plenty of warning, but with no
Amendments Act of 2003, and, of course, theExecutive Director in place, too many political
possibility of a national boxing commission, butappointees, and the Commission seemingly asleep
these should not become red hearings thatat the switch, it failed to heed the warnings.
impede the immediate need for a pension plan. OnPerhaps too many of the appointees viewed their
the contrary, they should become enablers tofour-year appointments as invitations to hobnob
help make it happen. But wait, someone hadwith boxing figures and celebrities rather than
already thought of about this, although in a wayattend to the business at hand. At any rate, the
that needs some major improvements.Joint Committee determined that the Commission
THE CALIFORNIA PLANhad not dealt with certain financial and personnel
The Mission Statement of the former Californiaissues to an acceptable level and had resisted
State Athletic Commission was to make Californiarecommendations for needed accounting
the model state for the welfare of boxers andimprovements. Thus, the California State Athletic
other licensees, with worldwide respect from theCommission (CSAC) has now become the Athletic
public and the industry. In line with this itCommission Program (ACP), with its functions and
established a Professional Boxers Pension Plan theduties transferred to the California Department of
concept of which could easily be the model for allConsumer Affairs. (See ESB article entitled,
other states to build on. The plan is as follows:"California State Athletic Commission turns over
SUMMARY PLAN DESCRIPTIONthe Governance of Boxing to the DOC," 10.05.05).
1. General Information About the PlanWithout the State Athletic Commission, much of
The name of the plan is the Professional Boxers'the governance that existed was taken away
Pension Plan. The entire plan is set out in thefrom the people, as the new arrangement
California Business and Professions Code ("Code")deprives boxers, the promoters, fans, and boxing
and in Title 4 of the California Code of Regulationsactivist from participating in the decision making
section 400 through 416 ("Regulations"). Thisprocess. "It takes away our voice and our
summary is provided so that one can understandknowledge of the sport and turns it over to a
how the plan works. If there are any conflictsbunch of government workers," asserts Alex
between the plan as written in the Code andRamos, President and Founder of the Retired
Regulations and the description of the plan in thisBoxers Foundation (RBF). Meantime, there is
summary, the Code and Regulations will control.growing support for a bill championed by Rep. Don
The plan was changed in 1996. Now onlyPerata, D-Oakland, that would establish a new
promoters make contributions to the fund. Thecommission with new standards on Jan. 1, 2007.
plan was also changed to make job training earlyLet's hope so.
retirement benefits available to some boxers. TheBut California DOES have the aforementioned
job training early retirement benefits areBoxers Pension Plan, and if improved, monitored
described in section seven (7). The plan isand administered properly, it could be the
administered by the California State Athleticconceptual model to place the professional boxer
Commission ("commission"). The plan has a publicat the same level as other professional athletes.
purpose because it helps eligible boxers haveIn fact, if the California Boxers Pension Plan was
some benefits when they retire.initiated in every state, boxers would retire with a
2. Who Contributes to the Plan?pension they actually might be able to live on. The
Before June 17, 1997, the boxer, manager andBoxers Pension is basically financed by the
the promoter each contributed to the pensionfans--$.89 a ticket--and pays the retired boxer $2
fund; now only the promoter does so. Thefor each round fought in California. For example,
promoter's contribution is based on the number ofthe aforementioned Alex Ramos, who often
tickets sold and comped per event, up to afought in California, is eligible for $154 a month at
maximum contribution of $4,600 per show. Theretirement. Clearly not enough to really help, but if
law states that a licensed California boxer has tothe same were true of New Jersey and New
participate in the pension plan.York, states in which he also often fought, he
3. Who is Eligible for Benefits?would have a much better retirement indeed.
Any professional boxer who is licensed in andAlong similar lines, an Abstract of Pension Plans
fights in California ("boxer") after July 1, 1981 mayfor Professional Boxers: A Study Prepared by
be eligible to receive benefits. You are eligible toThe Segal Company for the Secretary of Labor
receive benefits as a "covered" boxer if you:as Mandated by Congress (Published in 1998) can
(a) fought in 10 scheduled rounds per calendarbe accessed on the web. In brief, this study
year during each of four calendar years after Julyconcluded:
1, 1981 without an intervening break in service;"...... that the individual - rather than team-oriented -
andnature of the sport, its socioeconomic climate and
(B) fought in 75 scheduled rounds after July 1,existing federal laws have operated to inhibit the
1981 without a break in service.development of a comprehensive pension plan for
If you fought in at least 20 scheduled roundsprofessional boxers. The study recommends the
between July 1, 1981 and June 30, 1984, you willestablishment of four separate but
also receive credit for rounds you foughtcomplementary plans to provide pensions for
between June 30, 1978 and July 1, 1981.active and now-retired boxers:
A "break in service" means that you did not fight1. A charitable trust designed to help the neediest
at least 10 scheduled rounds in California duringboxers immediately.
any 36 months in a row after July 1, 1981 and2. A defined contribution plan funded by a
before you turned 55 years old.percentage of each boxer's purse from each
If you are eligible for benefits and you die beforequalifying bout, potentially combined with
age 55, the benefits can be paid to a person youpromoter-paid matching contributions and additional
choose (the "beneficiary"). If you have not chosenvoluntary contributions by the boxer.
anyone, then the commission will choose the3. A defined benefit plan covering all present and
person who will receive your benefits, in the orderformer boxers who meet preset minimum
named in the California Probate Code. Theparticipation requirements. This type of plan would
commission's choice is final.guarantee a minimum benefit amount even for
4. When Can I Get Benefits?boxers who never had a realistic opportunity to
A boxer who has vested can receive benefitsplan for their retirement.
when he or she:4. A disability income/survivors' benefit program
Reaches the age of 55;to fill in gaps left by the first three plans.
Becomes medically retired or suffers an injury.......because pensions for boxers are now virtually
provable by a physician after the age of 36;nonexistent, congressional action or collective
Reaches the age of 36, becomes retired frombargaining will likely be necessary to bring a
boxing and requests a vocational education benefitcomprehensive program into existence."
that would be paid directly to the school; orTHE CHALLENGE
Dies before the age of 55, with benefits to beSo much for studies or what can be accessed on
paid to your beneficiary.the Internet or what can be found through simple
5. What Benefits Are Available?research. So much for politics and bureaucratic
The commission decides how it will pay benefitsobstacles. Let's focus on providing a dignified
to you. The commission will usually buy anretirement for those who thrilled us by risking so
insurance contract that pays money to you inmuch. Think what a breakthrough it would be If
equal amounts over a period of years. There willevery state embraced the kind of program
be at least one payment per year.California adopted. How difficult can that be?
OptionsWhat's standing in the way? Is anyone out there
You can ask the commission in writing to pay youhearing this? How difficult would it be to research
in a different way. You must give the commissionwhat California has done and then build on it? That
good reasons for changing the way it paysother states have not followed suit, at least
benefits. Good reasons include that you are dyingconceptually, is egregious, if not disgraceful. That
or retired because of a disability. You can ask tohis fellow senators have not embraced John
be paid in one of the following ways:McCain's efforts is disgraceful.
A. A single payment in cash.If governmental action or collective bargaining
B. Equal cash payments every three months, or aseem necessary to bring a comprehensive
specific percent of your pension account to beprogram into existence, then the focus manifestly
paid over no more than five (5) years.should be on Congressional action and the
C. Job training early retirement benefits. If youformation of a national boxing commission...as I
are at least 36 years old and retired from boxing,see little progress being made by the fledgling
you can ask the commission to have all or part ofunion known as the Joint Association of Boxers
your pension benefit paid for school or job training(JAB), an apparent subordinate body of the
to help you prepare for a different career. If theInternational Brotherhood of the Teamsters.
commission approves your request, it will pay theRecognizing that to establish a national commission
money directly to the school that you attend. Theis easier said then done, I suspect there are
school has to show the commission that you areplenty of people out there with the qualifications
actually going to class.to sit on such a commission, people like Teddy
6. What Goes into My Account?Atlas, Dr. Flip Homansky and former fighter Dave
Money contributed by you, managers andTiberi. Atlas and Senator John McCain are strong
promoters before June 17, 1997, as well as byadvocates, and McCain might just be able to pull it
promoters after June 17, 1997 goes into youroff. If so, it will be the fighters who win.
pension account. The amount placed in yourIn the meantime, people like Alex Ramos and
pension account depends upon the number ofJacquie Richardson (the Executive Director of the
rounds you fought and the amount of purses paidRetired Boxers Foundation) and Gerry Cooney,
to you. One-half of the money contributed bywho started the F.I.S.T. Foundation (Fighter's
promoters is divided among boxers based on theInitiative for Support and Transition) are filling
number of scheduled rounds fought in Californiasome important gaps for needy retired fighters
by each boxer as a percent of the total numberLet's just get it on!
of scheduled rounds fought by all boxers in"All of the sports have a safety net, but boxing is
California during a year. The other half is dividedthe only sport that has none. So when the fighter
based upon the amount of purses received byis through, he is through. While he was fighting his
boxers for fights in California during a year.management was very excited for him, but now
For example, if you fought 20 of the total 2,000that he is done, that management team is moving
rounds of scheduled boxing fought in Californiaon.......by the time you're 30 years old, you can be
during one year, your part is 1% of the amounton a nowhere street, if you're not careful.
contributed for total rounds. If you were paid