Game on! The NHL players are strapping on their skates and hitting the ice. And, similar to the NFL referees, one of the more hotly debated items has been the addition of a defined benefit (DB) pension plan for players.

The league has provided a defined contribution (DC) plan since 1986, but downward financial markets have put the hockey players on thin ice, and they ve argued that a DB plan is the only way to make sure they have adequate retirement income.

The DB plan offers full retirement benefits at age 45, with reduced benefits available at age 35. Players are eligible for the plan after playing one game, but for full benefits, they must play in 160 games (about two seasons).

It's the same old story
The NHL players may have the spotlight these days, but their situation is very common (apart from their multimillion dollar salaries). DC plans became the norm in the mid-1980s because they were easier to understand and easier to administer than traditional DB plans. In addition, the fact that employees shared the cost of DC plans was very appealing to employers.

Back in those days, the stock market was riding high and there were few concerns about DC plans providing a livable retirement income. Today's situation is very different. With several years of poor returns, Baby Boomers have decided to work longer, and they are living longer too. A longer retirement requires more money, which requires either waiting for the market to replenish sagging DC plan balances, or supplementing retirement savings with income from other sources.

The NHL players union saw this as an opportunity to take a shot at getting a DB plan. DB plans are especially well-suited to professional athletes, whose working lifetimes are very short, allowing the athletes to accumulate the maximum amount of retirement income very quickly. Moreover, as history has shown with so many, professional athletes are usually not as focused on saving their salaries for the future.