Bobby Bonilla
July 1 is Bobby Bonilla Day, based on the Major League Baseball player’s 2000 player agreement, which saw him defer payment for 10 years – an unusual move at the time – allowing for the accrual of interest and resulting in the continued payout of $1.2 million annually, similar to a fixed annuity, each July 1. This year, global asset manager Nuveen and retirement services provider TIAA have partnered with a sports platform to further promote the importance of guaranteed income for everyday Americans by creating a short film.
But guaranteed income isn’t just for sports stars – and you don’t need millions to reap the benefits. In fact, regular workers can also access pension-like security in retirement. “What's made headlines with Bobby Bonilla's contract is something TIAA has been delivering to educators and researchers for over a century - guaranteed income that provides financial security regardless of market conditions,” said Colbert Narcisse, Chief Product and Business Development Officer, TIAA.
Recommended For You
"Bobby's arrangement is essentially a fixed annuity that delivers steady, reliable income every July 1st. TIAA pioneered this concept over 100 years ago, recognizing that predictable income creates peace of mind, which is the true definition of retirement security … When considering annuities, start with your workplace retirement plan. The institutional options there have often been vetted by financial professionals with your best interests in mind."
"SECURE 2.0 has created a watershed moment for retirement security in America,” said Brendan McCarthy, Head of Nuveen Retirement Investing. “We now have the regulatory framework to bring guaranteed lifetime income solutions directly to workers through their 401(k) plans, addressing what has been a critical gap in retirement planning for millions."
To further promote the lifetime income solutions, Nuveen and TIAA have teamed up with Front Office Sports, a leading multiplatform media and news organization covering the business of sports, to launch a new short film, The Big Deal, detailing how Bonilla secured long-term financial security through a now-legendary contract.
“Guaranteed income is everything,” said Bonilla during an interview for The Big Deal. “That assurance that I’m able to take care of everybody, that’s peace of mind everybody should enjoy.”
“What Bobby Bonilla secured through an iconic contract, we are now working to make available to everyday Americans through their workplace retirement plans,” said McCarthy. “The demand for predictable, guaranteed income that can’t be outlived is universal.”
Related: Gimme pension: Workers call on employers to offer lifetime income in their 401(k) plans
“What’s made headlines with Bobby Bonilla’s contract is something TIAA has been delivering to educators and researchers for over a century - guaranteed income that provides financial security regardless of market conditions,” said Narcisse.
“With The Big Deal, we’re shining a light on one of the original and most iconic contract deferrals in sports, a practice that has now become more common among athletes, who go through the same long-term thought process with finances that many people do in their daily lives,” said Jonny Sonkin, Chief Operating Officer of Front Office Sports.
“Every July 1st, that check hits,” said Bonilla. “It’s peace of mind knowing that no matter what, that’s locked in. July 1st is guaranteed income, steady, simple, and secure.”
"The retirement landscape has shifted from traditional pension plans to 401(k)s, leaving the majority of American workers with social security as their only source of guaranteed income in retirement,” said McCarthy. “Through SECURE 2.0 provisions, we're bringing back the security of pension-like income without abandoning the flexibility of defined contribution plans."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Lynn Cavanaugh
Lynn Varacalli Cavanaugh is Senior Editor, Retirement at BenefitsPRO. Prior, she was editor-in-chief of the What's New in Benefits & Compensation newsletter. She has worked for major firms in the employee benefits space, Vanguard and Willis Towers Watson, as well as top media companies, including Condé Nast and American Media.
