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2020 Twins Transactions

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#201 rdehring

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Posted 02 October 2020 - 07:30 AM

 

Pension credits are awarded for every quarter of a season you play. 1 season service time is considered to be 172 days, so it takes 43 days to first qualify, and every 43 days you accumulate after that (max 172 per year) increases your benefit.

 

10 years is indeed the max benefit, and the benefit figures I've seen for that are $68k annually if you start drawing at 45, or $220k annually if you wait until 62.

 

1 day of service time, however, does entitle a player to lifetime health insurance. If you reach 10 years service, I think your spouse is also covered for life too (Doug Mientkiewicz hung on for 10 years, in part for this reason).

 

In any case, Poppen had 38 days service time in 2019, so his 2020 service time was pretty important in this regard!

Very interesting, thanks.

 

Do you know if the payment is prorata, ie, one-quarter year is 2.5% of a full ten years. So if the max at 45 years old is $68,000, Poppen would get 2.5% of that for one-quarter...or $1,700 per year?


#202 spycake

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Posted 02 October 2020 - 08:38 AM

 

Very interesting, thanks.

 

Do you know if the payment is prorata, ie, one-quarter year is 2.5% of a full ten years. So if the max at 45 years old is $68,000, Poppen would get 2.5% of that for one-quarter...or $1,700 per year?

Roughly maybe? Here's a document from 2012 to give you an idea -- although I am sure the numbers have changed since then: 

http://www.mlb.com/m...nsion-print.pdf

 

There's both a fixed component (page 114) and a variable component (page 112, table 7), and I'm guessing the variable component will be worth a bit more in ~20 years when Poppen would be eligible to receive it. But you're right, 43 days alone in one season isn't worth all that much at age 45. It's a bit better if you wait until age 62, although nothing close to a living income.

 

Fortunately for Poppen, he earned quite a bit more service time in 2020 (maybe 68 days, after prorating?), so I think he's past 2 quarter-units and very close to 3 now, plus he may even qualify already for the higher-3-year-consecutive-average-salary fixed benefit (table 9, pg 115). His benefit at age 62 may soon or already be about $1k a month or more?

 

(I wonder if Poppen would be amused to know that strangers on the internet are trying to estimate his pension benefit!)

 

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#203 Seth Stohs

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Posted 02 October 2020 - 11:06 AM

Yeah, figured Poppen would get claimed. His stuff is too good. 


#204 Danchat

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Posted 02 October 2020 - 01:42 PM

I would have expected the Pirates to have claimed Littell, not Poppen. I suppose Poppen has the better stuff, but he didn't look good when he pitched for the major league squad.