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NBA PLAYERS ASSOCIATION SELECTS MERRILL LYNCH TO MANAGE PRE-PENSION TRUST ACCOUNTS FOR PLAYERS

 NBA PLAYERS ASSOCIATION SELECTS MERRILL LYNCH
 TO MANAGE PRE-PENSION TRUST ACCOUNTS FOR PLAYERS
 NEW YORK, Jan. 24 /PRNewswire/ -- The National Basketball Association Players Association has chosen Merrill Lynch to create and manage a "pre-pension" trust fund for the NBA's 325 players, it was announced today by Merrill Lynch & Co., Inc. (NYSE: MER).
 The fund is designed to provide a financial cushion for the players, many of whom stop playing in their 30s, but who are ineligible for pension payments until they reach 50.
 "For years, we've been trying to solve a problem many professional athletes face, how to provide income during the most critical time in their lives, ages 30 to 50, which is a transition period from professional basketball to a second career," said Charles Grantham, executive director of the NBA Players Association.
 According to Winthrop H. Smith Jr., senior vice president at Merrill Lynch, "By putting a portion of their earned revenue into a managed trust account, their money can grow considerably and provide a comfortable nest egg during their non-playing years."
 Merrill Lynch will put the money into Individual Trust Accounts for the players and these accounts will be managed by Merrill Lynch Asset Management. When a player stops playing, and leaves the league, he will receive fixed monthly payments in the form of an annuity.
 "We selected Merrill Lynch, not just because of its vast resources, capabilities and reputation, but also because of its commitment to help educate the players in money management and financial planning," said Grantham.
 Under terms of a four-year contract, up to 8 percent of the NBA Defined Growth Revenue will be placed in trust accounts for all NBA active players. The plan contributed $22 million the first year and the contribution is expected to reach $200 million within four years.
 -0- 1/24/92
 /CONTACT: Fred Yager of Merrill Lynch, 212-449-7355/
 (MER) CO: Merrill Lynch & Co., Inc.; National Basketball Association Players
 Association ST: New York IN: FIN SU:


GK-KW -- NY058 -- 3330 01/24/92 13:18 EST
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Publication:PR Newswire
Date:Jan 24, 1992
Words:336
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