Article 4 BENEFITS

4.1 Player Pension Benefits.

Subject to approval by the Internal Revenue Service (the “IRS”) (to the extent such approval may be obtained pursuant to IRS procedures) and to the extent permitted by applicable law, the NBA shall provide the following pension benefits to NBA players and former NBA players in accordance with and subject to the terms and conditions of the National Basketball Association Players’ Pension Plan, as restated effective July 1, 2017, and as amended from time to time and as to be modified as set forth herein (the “Pension Plan”), and the Amended and Restated Agreement of Trust for the Pension Plan, effective as of July 1, 2017, and as amended from time to time (the “Pension Trust Agreement”). (All capitalized terms used in this Section 1 not otherwise defined in this Agreement shall have the meanings set forth in the Pension Plan.)

Benefits.
1. Current Benefit. As of the effective date of this Agreement, the monthly amount per Year of Credited Service payable as a Normal Retirement Pension (the “Monthly Benefit”) is $1,001.47.
2. Benefit Increase.
  1. The Pension Plan shall be amended to provide that, effective as of February 2, 2024, (A) the Normal Retirement Date shall be the first of the month following a player’s sixty-second (62nd) birthday, and (B) the Early Retirement Date shall be any date on or after the first day of the month following the player’s forty-fifth (45th) birthday and prior to the player’s Normal Retirement Date. The Early Retirement Pension shall be the actuarial equivalent of the Normal Retirement Pension, as determined using modified actuarial equivalence factors to be specified in the Pension Plan amendment effective as of February 2, 2024.
  2. Effective for the Plan Year commencing February 2, 2024, and for each subsequent Plan Year during the term of this Agreement, the Normal Retirement Pension shall be adjusted (the Monthly Benefit following any such adjustment, the “New Monthly Benefit”) such that, subject to Section 1(d) below, the New Monthly Benefit shall equal (A) the maximum annual dollar amount permitted under the Internal Revenue Code of 1986, as amended (the “Code”) (and the regulations issued thereunder), as the Code and regulations are in effect as of the effective date of this Agreement, as such maximum benefit amount may be adjusted for future increases in the cost-of-living in the manner prescribed by Section 415(d)(2) of the Code, divided by (B) one hundred twenty (120). The maximum annual dollar amount permitted under the Code (and the regulations issued thereunder) for a player’s Early Retirement Pension shall be determined using modified actuarial equivalence factors to be specified in the Pension Plan amendment effective as of February 2, 2024.
  3. Any increase in the Normal Retirement Pension or Early Retirement Pension payable on or after the date of this Agreement: (A) shall apply only to those players and beneficiaries (x) who have not yet received or begun to receive a benefit under the Pension Plan as of the first day of the month following the beginning of the Plan Year to which the increase relates (the “New Benefit Increase Commencement Date”) or (y) who are receiving monthly benefits under the Pension Plan as of the New Benefit Increase Commencement Date; (B) shall be effective as of the New Benefit Increase Commencement Date; (C) shall apply only to any benefit payment(s) to be made on or after the applicable New Benefit Increase Commencement Date; and (D) shall not require the recalculation of any benefit payment(s) made prior to the applicable New Benefit Increase Commencement Date.
Two-Way Players. The Pension Plan shall be amended to provide that, for each Regular Season during the term of this Agreement, a Two-Way Player shall be considered to be on a Roster if he is (1) on an Active List, Inactive List, or Two-Way List of any Team on February 2nd of such Regular Season (or such other date that the parties may agree to), or (2) on the Active List of any Team for fifty percent (50%) or more of the total Regular Season games played by the Team during such Regular Season.
Pre-1965 Players and Pre-1965 Retirees. Effective for the Plan Year commencing February 2, 2018, and for each subsequent Plan Year during the term of this Agreement:
1. Pre-1965 Players shall continue to be entitled to receive the Normal Retirement Benefit in the amount and on the terms and conditions set forth in Article XIV of the Pension Plan.
2. Pre-1965 Retirees shall continue to be entitled to receive the Retirement Benefit in the amount and on the terms and conditions set forth in Article XV of the Pension Plan.
3. Any benefits that are unable to be paid to Pre-1965 Players or Pre-1965 Retirees under the Pension Plan because of the benefit limitations imposed by Section 415 of the Code shall be paid to such Pre-1965 Players and Pre-1965 Retirees pursuant to the National Basketball Association Excess Benefit Plan for Pre-1965 Players (the “Pre-1965 Players Excess Benefit Plan”).
Limitations on Benefits. Notwithstanding anything contained herein to the contrary:
1. Neither: (i) the pension benefits accrued or payable to any player or beneficiary for a Plan Year nor (ii) the New Monthly Benefit for a Plan Year shall exceed the maximum benefit amount permitted under the Code (and the regulations issued thereunder) as in effect for that Plan Year (as adjusted in accordance with the actuarial factors specified in the Pension Plan and as in effect on the date that the benefit accrues or commences (or is paid) or for the Plan Year for which the New Monthly Benefit is determined), as such maximum benefit amount may be adjusted for future increases in the cost-of-living in the manner provided under Section 415(d)(2) of the Code.
2. Neither the pension benefits accrued nor payable to any player or beneficiary for a Plan Year shall exceed the maximum benefit amount permitted under the Code (and the regulations issued thereunder), as in effect as of the effective date of this Agreement, as adjusted in accordance with the actuarial factors specified in the Pension Plan, and as may be adjusted for future increases in the cost-of-living in the manner prescribed by Section 415(d)(2) of the Code.
3. If all or any portion of the actuarially-determined annual contributions to be made to the Pension Plan would not be fully deductible under the Code when paid to the Pension Plan, the New Monthly Benefit shall not exceed the amount which would result in all of such contributions being fully-deductible when paid. In the event that any such contribution or portion thereof is not fully deductible when paid, the NBA and the Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by the NBA Teams to the players. The costs of any such alternative arrangement shall be at an annual cost (as determined on an after-tax basis) to the NBA Teams substantially equal to but no greater than the annual accrual cost that such Teams would have incurred under the Pension Plan to fund the amount by which the New Monthly Benefit is reduced pursuant to this Section 1(d)(3). If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right: (A) to unilaterally implement during the term of this Agreement any terms concerning the provision of pension benefits to the players; (B) to lockout; or (C) to strike.
Administration.
1. Subject to the provisions of Section 3.3(f) of the Pension Trust Agreement, which are hereby incorporated by reference and expressly designed to survive the expiration or termination of this Agreement, the Pension Plan shall continue to be jointly operated and administered by the NBA and the Players Association in accordance with Section 302(c)(5) of the Labor Management Relations Act of 1947, as amended, and the provisions of the Pension Trust Agreement and the Pension Plan.
2. It is intended by the NBA and the Players Association that: (i) the Pension Plan shall continue to constitute a collectively-bargained multiemployer defined benefit pension plan that is tax-qualified under Section 401(a) of the Code; and (ii) the Pension Plan’s corresponding Trust is exempt from taxation under the provisions of Section 501(a) of the Code.
3. The daily operations of the Pension Plan shall continue to be delegated to one or more independent third-party administrators, as selected by the Board of Trustees of the Pension Plan in its sole discretion.
Contributions/Funding. The NBA and Players Association acknowledge and agree that the Teams shall continue at all times to contribute to the Plan at least the amount necessary to meet the Pension Plan’s statutory minimum funding requirements under Section 412, Section 431, and, if applicable, Section 432 of the Code, or any other applicable law (the “Minimum Funding Standards”) for such Plan Year, as determined by the actuaries of the Pension Plan. For any period during the term of this Agreement during which a new “funding improvement plan” (a “FIP”) is required to be adopted by the Pension Plan under the Minimum Funding Standards, the funding benchmark for such FIP shall equal the funding benchmark required by the Minimum Funding Standards. The Teams may, in the sole discretion of the NBA, contribute to the Pension Plan more than the amount necessary to meet the Minimum Funding Standards; provided, however, that any such additional contribution amount shall not be greater than the contribution amount determined by the actuaries of the Pension Plan in accordance with the Pension Plan’s historical scheduled contribution methodology. All contributions shall be conditioned on their being fully deductible by the Teams when paid.
Players Employed by Toronto.
1. Players employed by Maple Leaf Sports & Entertainment Partnership (or any successor thereto) (“Toronto”) or by an NBA Team located in any country other than the United States shall continue to receive pension benefits of comparable value. Except as otherwise provided in Section 1(g)(2), players employed by Toronto (“Toronto Players”) shall continue to receive such benefits by means of the Pension Plan and the Toronto Raptors Players’ Pension Plan, as restated effective February 2, 2019, and as amended from time to time (the “Toronto Plan”); provided, however, that a player shall not be eligible to participate (or continue to participate) in the Pension Plan for any period of time during which the player is both a resident of Canada for income tax purposes and a Toronto Player (a “Canadian Resident”) but shall instead be eligible to receive a cash payment as described in Section 7 below.
2. If the participation of Toronto Players in the Pension Plan would, at any time, result in the Pension Plan becoming subject to Canadian provincial pension legislation and/or Canadian federal income tax laws (to the extent that the application of such laws would result in adverse tax consequences to the Pension Plan, the NBA Teams or the Toronto Players) or result in the Toronto Plan’s failure, at any future time, to either be qualified under the Code or registered under Canadian provincial pension legislation or Canadian federal tax laws, then any obligation to establish, maintain, or make contributions to the Pension Plan in respect of Toronto Players and the Toronto Plan pursuant to this Agreement or pursuant to any prior collective bargaining agreement shall terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right: (i) to unilaterally implement during the term of this Agreement any terms concerning the provision of pension benefits to the players; (ii) to lockout; or (iii) to strike. In the event of such termination, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by Toronto to the Toronto Players. Any such alternative arrangement shall be at an annual cost (as determined on an after-tax basis) to Toronto substantially equal to but no greater than the annual accrual cost that Toronto would have incurred under the Pension Plan and the Toronto Plan. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right: (A) to unilaterally implement during the term of this Agreement any terms concerning the provision of pension benefits to the players; (B) to lockout; or (C) to strike.
3. Subject to the provisions of Section 9.1(a) of the Toronto Plan, which are hereby incorporated by reference and expressly designed to survive the expiration or termination of this Agreement, the Toronto Plan shall continue to be jointly operated and administered by the NBA and Players Association in accordance with Section 302(c)(5) of the Labor Management Relations Act of 1947, as amended, Section 8(1)(b) of the Pension Benefits Act (as defined in the Toronto Plan), and the provisions of the Toronto Plan.
4. It is intended by the NBA and the Players Association that: (i) the Toronto Plan shall continue to constitute a collectively-bargained single employer defined benefit pension plan that is sponsored by Toronto and is tax-qualified under Section 401(a) of the Code and registered under Section 147.1 of the Income Tax Act (as defined in the Toronto Plan) and Sections 9 and 12 of the Pension Benefits Act; and (ii) the Toronto Plan’s corresponding trust fund shall continue to be exempt from taxation under the provisions of Section 149(1)(o) of the Income Tax Act and Section 501(a) of the Code.
5. The daily operations of the Toronto Plan shall continue to be delegated to one or more independent third-party administrators, as selected by the Committee of the Toronto Plan in its sole discretion.
Pension Plan Tax-Qualification Status. Notwithstanding anything else in this Agreement: (1) if any change or amendment made to the Code, ERISA, or other applicable law, or to any regulations (whether final, temporary, or proposed) or rulings issued thereunder; (2) if any interpretation, application or enforcement (or any proposed interpretation, application, or enforcement), by a court of competent jurisdiction in the United States or by the IRS, of the Code, ERISA, or other applicable law, or any regulations or rulings issued thereunder; (3) if any regulations (whether final, temporary, or proposed) or rulings issued by the IRS under the Code or ERISA; or (4) if any provisions of this Agreement, including, without limitation, any of the amendments or benefit increases to be provided under the Pension Plan pursuant to this Section 1, would result in the Pension Plan no longer being a tax-qualified plan under Section 401(a) of the Code, or would require NBA Teams to incur costs over and above any costs required to be incurred to implement the provisions of this Agreement or any prior collective bargaining agreement in order for the Pension Plan to maintain its tax-qualified status under Section 401(a) of the Code (but only to the extent that such additional costs are incurred in connection with the provision of pension benefits to their non-player employees or to non-player employees of affiliates (within the meaning of Sections 414(b), (c) or (m) of the Code) of such Teams), then any obligation to continue to provide for the accrual of additional benefits under the Pension Plan pursuant to this Agreement or pursuant to any prior collective bargaining agreement shall terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right: (i) to unilaterally implement during the term of this Agreement any terms concerning the provision of pension benefits to the players; (ii) to lockout; or (iii) to strike. In the event of such termination, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by the NBA Teams to the players. The costs of any such alternative arrangement shall be at an annual cost (as determined on an after-tax basis) to the NBA Teams substantially equal to but no greater than the annual accrual cost that such Teams would have incurred under the Pension Plan to fund the benefit described in this Section 1, commencing on the date of termination. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right: (A) to unilaterally implement during the term of this Agreement any terms concerning the provision of pension benefits to the players; (B) to lockout; or (C) to strike.
Additional Pension Benefits Costs. The NBA Teams shall pay all costs, including, without limitation, the cost of professional fees (e.g., attorneys, accountants, actuaries, and consultants) (“Professional Fees”), incurred in connection with: (1) the operation and administration of the Toronto Plan (but excluding the cost of contributions made by Toronto to the Toronto Plan), and (2) the determination and implementation of any alternative benefits pursuant to Sections 1(g)(2) and/or 1(h).
Actuarial Determinations. All actuarial determinations that need to be made in connection with, or under, the Pension Plan, including, without limitation, those necessary to implement this Section 1 and Section 9 below, shall be made by the actuaries of the Pension Plan. Any such actuarial determinations shall be binding and conclusive.

4.2 Player 401(k) Benefits.

To the extent permitted by the Code and applicable law, the NBA shall provide the following 401(k) benefits to NBA players and former NBA players in accordance with and subject to the terms and conditions of the National Basketball Association Players’ 401(k) Savings Plan as restated effective November 1, 2014, as amended from time to time and as to be modified as set forth herein (the “401(k) Plan”). (All capitalized terms used in this Section 2 not otherwise defined in this Agreement shall have the meanings set forth in the 401(k) Plan and, for purposes of this Section 2, the term “Compensation” shall have the meaning set forth in the 401(k) Plan and not Article I or Exhibit A of this Agreement.)

Current Benefits. For each Plan Year commencing during the term of this Agreement, the 401(k) Plan shall continue to provide for: (1) Salary Deferral Contributions by players, (2) except as may be limited below, Matching Contributions by Teams in respect of Salary Deferral Contributions for a Salary Cap Year, as requested in writing by the Players Association, and (3) After Tax Contributions by players. The request for the Matching Contributions by the Players Association for a Season shall be made in writing prior to the commencement of that Season.
Two-Way Matching Contributions. Effective for all Regular Seasons during the term of this Agreement, the 401(k) Plan shall be amended to eliminate the matching contribution formula currently applicable to Two-Way Players and provide Two-Way Players who are Eligible Players a Matching Contribution pursuant to the formula set forth in Section 3.7 of the 401(k) Plan.
Timing of Matching Contributions. Any Matching Contributions to be made to the 401(k) Plan in respect of each Season shall be made no later than thirty (30) days following the completion of the Audit Report for the Salary Cap Year covering such Season.
Limitations on Benefits. Notwithstanding anything contained herein to the contrary:
1. Matching Contributions, Salary Deferral Contributions, and After Tax Contributions shall at all times be subject to all applicable limitations under the Code, including, without limitation, the maximum limitation on contributions under Code Section 415, the maximum limitation on compensation under Code Section 401(a)(17), and the maximum limitation on 401(k) deferrals under Code Section 402(g).
2. The total amount of the Salary Deferral Contributions and Matching Contributions to be made to the 401(k) Plan shall be limited to an amount that, taking into account only Compensation paid to current players by the Teams, would result in all of such Salary Deferral Contributions and Matching Contributions being fully deductible under the Code (and, where applicable, Canadian income tax laws) when paid to the 401(k) Plan. If, for any reason, all or a portion of the Salary Deferral Contributions and Matching Contributions to be made to the 401(k) Plan will not, when paid to the 401(k) Plan, be fully deductible under the Code, the NBA and the Players Association agree that the contributions shall be reduced to result in all such contributions being fully deductible when paid.
Players Employed by Toronto. The terms of the 401(k) Plan shall continue to permit participation by Toronto Players on a tax-effective basis under Canadian income tax laws; provided, however, that a player shall not be eligible to participate in the 401(k) Plan for the period of time during which the player is a Canadian Resident but shall instead be eligible to receive a cash payment as described in Section 7 below. If the NBA and the Players Association should determine that the 401(k) Plan cannot continue to be provided to Toronto Players on a tax-effective basis under Canadian federal income tax laws, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by Toronto to the Toronto Players. The costs of any such alternative arrangement shall be at an annual cost (as determined on an after-tax basis) to Toronto substantially equal to but no greater than the annual cost that Toronto would have incurred under the 401(k) Plan with respect to the Matching Contributions for the Toronto Players. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right: (i) to unilaterally implement during the term of this Agreement any terms concerning the provision of 401(k) benefits to the players; (ii) to lockout; or (iii) to strike.
401(k) Plan Tax-Qualification Status. Notwithstanding anything else in this Agreement: (1) if any change or amendment made to the Code, ERISA, or other applicable law, or to any regulations (whether final, temporary, or proposed) or rulings issued thereunder; (2) if any interpretation, application, or enforcement (or any proposed interpretation, application, or enforcement), by a court of competent jurisdiction in the United States or by the IRS, of the Code, ERISA, or other applicable law, or any regulations or rulings issued thereunder; (3) if any regulations (whether final, temporary, or proposed) or rulings issued by the IRS under the Code or ERISA; or (4) if any provisions of this Agreement would result in the 401(k) Plan no longer being a tax-qualified plan under Section 401(a) of the Code, or would require NBA Teams to incur costs over and above any costs required to be incurred to implement the provisions of this Agreement or any prior collective bargaining agreement in order for the 401(k) Plan to maintain its tax-qualified status under Section 401(a) of the Code (but only to the extent that such additional costs are incurred in connection with the provision of benefits to their non-player employees or to non-player employees of affiliates (within the meaning of Sections 414(b), (c), or (m) of the Code) of such Teams), then any obligation to maintain or make contributions to the 401(k) Plan pursuant to this Agreement or pursuant to any prior collective bargaining agreement shall terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right: (i) to unilaterally implement during the term of this Agreement any terms concerning the provision of 401(k) benefits to the players; (ii) to lockout; or (iii) to strike. In the event of such termination, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by the NBA Teams to the players. Any such alternative arrangement shall be at an annual cost (as determined on an after-tax basis) to the NBA Teams substantially equal to but no greater than the annual cost that such Teams would have incurred under the 401(k) Plan with respect to Matching Contributions commencing on the date of termination. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right: (x) to unilaterally implement during the term of this Agreement any terms concerning the provision of 401(k) benefits to the players; (y) to lockout; or (z) to strike.
Additional 401(k) Benefits Costs. The NBA Teams shall pay all costs incurred in connection with the operation and administration of the 401(k) Plan (and in connection with the determination and implementation of any alternative arrangement pursuant to Section 2(e) and/or Section 2(f)), including, without limitation, the cost of Professional Fees and the 401(k) Plan’s recordkeeper’s fixed fee for recordkeeping and other administrative services provided to the 401(k) Plan. Notwithstanding the previous sentence, this Section 2(g) shall not apply to: (1) any costs or fees attributable to a participant-initiated transaction under the 401(k) Plan; or (2) any investment fees or expenses charged directly against the return on any investment options under the 401(k) Plan, which, in each case, shall be paid by the applicable participant.

4.3 Player Health and Welfare Benefits.

Except as set forth below in this Section 3, as of the effective date of this Agreement, and continuing until the expiration or termination of this Agreement, to the extent permitted by applicable law, the NBA shall provide the following health and welfare benefits to NBA players and former NBA players in accordance with and subject to the terms and conditions of the National Basketball Association Players’ Health and Welfare Benefit Plan, as in effect on the date of this Agreement, as amended from time to time and as to be modified as set forth herein (the “Health and Welfare Benefit Plan”) and the Agreement of Trust for the NBA Players’ Health and Welfare Benefit Plan, as restated effective July 1, 2017, and as amended from time to time (the “Health and Welfare Benefit Trust Agreement” and the trust, the “Health and Welfare Benefit Trust”). (All capitalized terms used in this Section 3 not otherwise defined in this Agreement shall have the meanings set forth in the Health and Welfare Benefit Plan.)

Benefits. The Health and Welfare Benefit Plan shall continue to provide the following benefits, which shall be operated and administered through the Health and Welfare Benefit Trust:
1. A health reimbursement arrangement (the “HRA Benefit”) for players who played in the NBA during and/or after the 2000-01 Season will continue to be operated in accordance with the Health and Welfare Benefit Plan, which arrangement shall be administered and operated in compliance with IRS and U.S. Department of Labor rules applicable to such arrangements. Except as may otherwise be agreed to by the NBA and the Players Association, any contributions to fund the HRA Benefit in respect of each Salary Cap Year shall be made no later than ninety (90) days following the completion of the Audit Report for such Salary Cap Year.
2. The following insurance benefits provided to players:
  1. Life insurance and accidental death and dismemberment benefits, which, as of the date of this Agreement, are being provided through the Metropolitan Life Insurance Company Policy No. 0122986; provided, however, the Health and Welfare Benefit Plan shall be amended to provide that Two-Way Players shall receive the same level of coverage under such policy as players who signed a Standard NBA Contract.
  2. Disability insurance benefits, which, as of the date of this Agreement, are being provided through the Houston Casualty Company Policy No. 20/7005744.
  3. Except as otherwise provided in Section 3(a)(2)(iv), medical, dental, vision, and prescription drug insurance benefits which, as of the date of this Agreement, are being provided through the CIGNA HealthCare Policy No. 3211244 and the EyeMed Vision Care Policy No. 9886987; provided, however, that the Health and Welfare Benefit Plan shall be amended to provide that Two-Way Players shall not be required to contribute toward their medical, dental, vision, and prescription drug insurance premiums.
  4. For players other than Two-Way Players who are “qualified expatriates” under the Expatriate Health Coverage Clarification Act of 2014, expatriate medical, vision, and prescription drug insurance benefits through the Cigna Policy No. 07578A and the EyeMed Vision Care Policy No. 9886987.
3. All of the benefits provided for in Section 3(a)(2) are subject to their permissibility and availability under applicable law.
4. The Board of Trustees of the Health and Welfare Benefit Trust (the “Health and Welfare Trustees”) may make changes to any of the insurance programs provided under Section 3(a)(2), provided that any such change that would result in an increase in the costs or a change in the types or levels of any of the benefits, or that would change any such program from an insured program to a self-insured program or vice versa, must be mutually agreed to in writing by the NBA and the Players Association.
5. Subject to Sections 3(a)(5)(i)-(ii) below, the NBA and the Players Association shall continue to provide retiree health insurance benefits which, as of the effective date of this Agreement, are being provided through UnitedHealthcare Policy Numbers 908971, 16160, 16161 and 16162, Cigna Policy Number 3342982, and EyeMed Policy Number 10250821001 (collectively, the “Retiree Medical Plan”).
  1. The Retiree Medical Plan will be continued only for the term of this Agreement; provided, however, that the NBA and the Players Association (or, if so delegated by the NBA and the Players Association in writing, the Health and Welfare Trustees) reserve the right, by mutual written agreement, to modify, amend, or terminate, in whole or in part, the Retiree Medical Plan with respect to any or all eligible retirees and their eligible dependents at any time or for any reason, and no eligible retirees or eligible dependents (or other NBA players, retired NBA players or their dependents) shall under any circumstances have any vested rights of any nature with respect to the Retiree Medical Plan or any retiree health benefit (whether or not the player or retired player, or their dependents, has participated in the Retiree Medical Plan).
  2. The NBA and the Players Association (or, if so delegated by the NBA and the Players Association in writing, the Health and Welfare Trustees) reserve the right, by mutual written agreement, to increase or otherwise change the amount of monthly premiums under the Retiree Medical Plan charged to players at any time and for any reason.
6. The Health and Welfare Benefit Plan shall continue to provide for a tuition and career transition benefit (the “Tuition Reimbursement Benefit”), to be modified as set forth below, which reimburses eligible players for qualifying educational expenses (“Educational Expenses”). For purposes of this Section 3(a)(6), an “eligible player” is a player who is eligible under plan rules to use the Tuition Reimbursement Benefit.
  1. Each eligible player in respect of each Salary Cap Year during or after the 2023-24 Salary Cap Year shall be entitled to a Tuition Reimbursement Benefit equal to the lesser of (A) $41,667, and (B) the difference between $125,000 and the sum of the amount of all Tuition Reimbursement Benefits previously earned by such player in respect of prior Salary Cap Years (including, for clarity, Salary Cap Years prior to the 2023-24 Salary Cap Year). Each eligible player with three (3) or more Years of NBA Service as of the date of this Agreement shall receive a one-time increase in his Tuition Reimbursement Benefit equal to $24,000.
  2. All eligible players, including players who have a Tuition Reimbursement Benefit as of the date of this Agreement, may be reimbursed for each calendar year up to a maximum of $62,500. Notwithstanding anything to the contrary, the maximum aggregate amount of Educational Expenses for which all eligible players may be reimbursed for each Salary Cap Year is $4,276,185.
7. The Health and Welfare Benefit Plan shall be amended to provide that, for purposes of the HRA, retiree medical, and tuition reimbursement benefits described in Sections 3(a)(1), 3(a)(5), and 3(a)(6) above, for each Regular Season during the term of this Agreement, a Two-Way Player shall earn a Year of NBA Service if he is (i) on an Active List, Inactive List, or Two-Way List of any Team on February 2nd of such Regular Season (or such other date that the parties may agree to), or (ii) on the Active List of any Team for fifty percent (50%) or more of the total Regular Season games played by the Team during such Regular Season.
Administration.
1. The Health and Welfare Benefit Trust shall continue to be jointly operated and administered by the NBA and Players Association in accordance with Section 302(c)(5) of the Labor Management Relations Act of 1947, as amended, and the provisions of the Health and Welfare Benefit Trust Agreement and the Health and Welfare Benefit Plan, as to be amended pursuant to this Agreement. It is intended by the NBA and Players Association that the Health and Welfare Benefit Plan and Health and Welfare Benefit Trust shall continue to constitute a collectively-bargained voluntary employees’ beneficiary association that qualifies as a tax exempt organization under the provisions of Section 501(c)(9) of the Code.
2. The Health and Welfare Benefit Trust Agreement shall continue to provide that the Health and Welfare Benefit Trust and Health and Welfare Benefit Plan will be administered by the Health and Welfare Trustees. The daily operations of the Health and Welfare Benefit Plan and each of the benefits provided thereunder shall continue to be delegated to one or more independent third-party administrators and/or insurers, as applicable.
3. For the avoidance of doubt, nothing in this Section 3(b) shall prevent the Education Trust (defined below) from engaging or hiring an academic advisor or career counselor to assist with player outreach and similar functions with respect to the tuition reimbursement and career transition program set forth in Section 3(a)(6).
Players Employed by Toronto. The terms of the Health and Welfare Benefit Plan shall continue to permit participation by Toronto Players on the same basis as players who are not Toronto Players; provided, however, that a player shall not be eligible to participate in the HRA Benefit for the period of time during which the player is a Canadian Resident but shall instead be eligible to receive a cash payment as described in Section 7 below. If the NBA and the Players Association determine that the Health and Welfare Benefit Plan cannot provide one or more of the benefits described in Section 3(a) to Toronto Players (1) that are substantially equivalent to the benefits provided to players employed by Teams located in the United States or (2) on a tax-effective basis under Canadian federal income tax laws, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by Toronto to the Toronto Players. The annual cost incurred by the Teams in connection with any such alternative arrangement (as determined on an after-tax basis) shall not exceed the annual cost that such Teams would have incurred to fund the applicable benefit(s) described in Section 3(a) for such Toronto Player. The cost to Toronto of funding any alternative arrangement(s) to any of the benefit(s) described in Section 3(a) shall be subject to the limitations set forth in this Agreement. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to any alternative arrangement(s) as described above, such failure to agree shall not create any right (A) to unilaterally implement during the term of this Agreement any terms concerning the provision of benefits provided or to be provided by the Health and Welfare Benefit Plan; (B) to lockout; or (C) to strike.
Deductibility of Contributions/Regulatory Changes.
1. The Health and Welfare Benefit Trust and the Health and Welfare Benefit Plan shall be operated and administered in a manner that will result in all contributions by the Teams being fully deductible under the Code (and, where applicable, Canadian income tax laws) when paid to the Health and Welfare Benefit Trust (or directly to an insurance carrier for a benefit provided under the Health and Welfare Benefit Plan). If any Team is disallowed a deduction (in whole or in part) for such contributions, and unless the NBA determines otherwise, the obligation to provide the benefit (or portion of the benefit under the Health and Welfare Benefit Plan to which the contribution relates) and to make further contributions to provide the benefit (or portion of the benefit under the Health and Welfare Benefit Plan to which the contribution relates) shall immediately terminate and the provisions of Section 3(d)(3) shall apply.
2. In the event that any benefit under the Health and Welfare Benefit Plan is no longer permissible or available due to applicable laws (a “Regulatory Change”), the obligation to provide the benefit shall immediately terminate and the provisions of Section 3(d)(3) shall apply.
3. Any termination of the Health and Welfare Benefit Plan or a benefit under such plan pursuant to Sections 3(d)(1)-(2) shall not impair the legally binding effect of any other provision of this Agreement, or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right (i) to unilaterally implement, during the term of this Agreement, any terms concerning the provision of the Health and Welfare Benefit Plan (or the applicable benefit provided or to be provided); (ii) to lockout; or (iii) to strike. In the event of any termination pursuant to Sections 3(d)(1)-(2) of the Health and Welfare Benefit Plan or a benefit under such plan, the NBA and Players Association agree to bargain in good faith with respect to alternative arrangement(s) to be provided by the NBA Teams to the players; provided, however, that any such alternative arrangement(s) shall be subject to the terms and conditions set forth in this Agreement, including, without limitation, with respect to an alternative arrangement to the Retiree Medical Plan, the terms and conditions set forth in Section 3(a)(5). The annual cost incurred by the NBA Teams in connection with any such alternative arrangement(s) (as determined on an after-tax basis) shall not exceed the annual cost that such Teams would have incurred in providing the relevant benefit(s) under the Health and Welfare Benefit Plan commencing on the date of termination. Any such alternative arrangement(s) shall, to the extent permitted by applicable law and the Health and Welfare Benefit Plan, be funded by such monies as may then remain in the Health and Welfare Benefit Trust and, if the monies remaining in the Health and Welfare Benefit Trust may not lawfully be used for, or are insufficient for, such purpose, such alternative arrangement(s) shall be funded by the NBA Teams. Any such alternative arrangement(s) shall be operated and administered in a manner that will result in all contributions by the Teams being fully deductible under the Code (and, where applicable, Canadian income tax laws) when paid. The costs of funding any alternative arrangement(s) shall be subject to the limitations set forth in this Agreement. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to any alternative arrangement(s) as described above, such failure to agree shall not create any right: (A) to unilaterally implement, during the term of this Agreement, any terms concerning the provision of benefits provided or to be provided by the Health and Welfare Benefit Plan; (B) to lockout; or (C) to strike.
Additional Health and Welfare Benefits Costs. Except as otherwise set forth in Section 9(b)(12), the NBA Teams shall pay all costs, including, without limitation, the cost of Professional Fees, incurred in connection with (1) the operation and administration of the Health and Welfare Benefit Plan Trust and the Health and Welfare Benefit Plan (including, without limitation, the operation and administration of the benefits set forth in Section 3(a) above and any other benefits to be provided under the Health and Welfare Benefit Plan), and (2) the determination and implementation of any alternative arrangement pursuant to Section 3(d)(3). Notwithstanding the preceding sentence, this Section 3(e) shall not apply to any costs or fees attributable to investment management fees in connection with the investment of Health and Welfare Benefit Trust assets. Such costs and fees shall: (i) be paid out of the assets of the Health and Welfare Benefit Trust; and (ii) be excluded for purposes of all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of: (A) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report; and (B) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits).

4.4 The Post-Career Income Plan.

To the extent permitted by the Code and applicable law, the NBA shall provide the following post-career income benefits to NBA players and former NBA players in accordance with and subject to the terms and conditions of the National Basketball Association Players’ Qualified Post-Career Income Plan, as restated effective July 1, 2017, and as amended from time to time (the “Qualified Plan”) and the National Basketball Association Players’ Non-Qualified Post-Career Income Plan, as restated effective July 1, 2017, and as amended from time to time (the “Non-Qualified Plan,” and, when referenced collectively with the Qualified Plan, the “Post-Career Income Plan”). (All capitalized terms used in this Section 4 not otherwise defined in this Agreement shall have the meanings set forth in the Post-Career Income Plan.)

Current Benefits.
1. Effective for the Contribution Year (defined below) commencing November 1, 2023, and for each subsequent Contribution Year during the term of this Agreement, the Post-Career Income Plan shall provide for: (i) a Team contribution to the Post-Career Income Plan for Eligible Players to be used to purchase Post-Career Annuities (the “Team Contribution”); and (ii) elective Player Contributions made by Qualifying Players to the Non-Qualified Plan to be used to purchase Post-Career Annuities on such players’ behalf. The Team Contribution for each Eligible Player for each Contribution Year shall equal (A) the Additional Benefit Amount (defined below) divided by the total number of Eligible Players for such Contribution Year (including, for this purpose only, any Canadian Resident who but for the fact that he is a Canadian Resident would otherwise be an Eligible Player) (such quotient, an Eligible Player’s “Allocated Share”), less (B) tax withholding (solely with respect to contributions made to the Non-Qualified Plan) in the manner described in Section 3.3 of the Non-Qualified Plan (“Tax Withholding”). For each Contribution Year, a portion of a player’s Allocated Share shall be contributed to the Qualified Plan on behalf of such player pursuant to the terms and conditions described in the Qualified Plan, and a portion to the Non-Qualified Plan pursuant to the terms and conditions described in the Non-Qualified Plan. For purposes of this Section 4, a “Contribution Year” means each November 1 through October 31 in respect of which a Team Funding Pool (defined below) is provided under this Section 4.
2. Notwithstanding anything in this Section 4(a) to the contrary, and subject to the requirements of the Code and IRS rules and regulations, if the Board of Trustees of the Post-Career Income Plan (the “PCIP Trustees”) determines, after Post-Career Annuities have been purchased for Eligible Players for a Contribution Year, that a present or former player should have received an Allocated Share for such Contribution Year but did not receive an Allocated Share, such present or former player shall be entitled to an Allocated Share equal to the amount of the Allocated Share made to the other Eligible Players for such Contribution Year, which shall be used to purchase one or more Post-Career Annuities in the same manner and on the same terms as the other Eligible Players for such Contribution Year. Unless practicable and otherwise agreed to by the PCIP Trustees, the cost of such Allocated Share shall not require a retroactive reduction in the Allocated Share and Post-Career Annuities of the other Eligible Players for such Contribution Year but rather shall be paid from the Additional Benefit Amount for the next Season (or, to the extent the Additional Benefit Amount for the next Season is insufficient, future Seasons). In addition, the cost of any additional fees or expenses charged by the Insurer for the purchase of such Post-Career Annuity (or for the purchase of any other Post-Career Annuity(ies) under the Post-Career Income Plan on a retroactive basis) shall also be paid from the Additional Benefit Amount for the next Season (or, to the extent the Additional Benefit Amount for the next Season is insufficient, future Seasons).
Deductibility of Team Contributions/Regulatory Changes.
1. The Post-Career Income Plan shall be structured and maintained in a manner that will result in the Team Funding Pool being fully deductible under the Code (and, where applicable, Canadian laws) when used toward Team Contributions contributed to the Post-Career Income Plan. In the event that a Team is disallowed a deduction (in whole or in part) for its portion of the Team Funding Pool, then the Team shall be returned such disallowed deduction from the Post-Career Income Plan; provided, however, that, if such portion may not be returned to the Team under the terms of the Plan or the applicable Group Annuity Contract or applicable law, then such Team shall instead be reimbursed for the lost tax benefit resulting from the disallowance of the deduction from the Additional Benefit Amount for the next Season (or, to the extent the Additional Benefit Amount for the next Season is insufficient, future Seasons) following the date such Team submits satisfactory documentation of the disallowance to the PCIP Trustees.
2. Notwithstanding anything else in this Agreement, if any event or occurrence, including, without limitation, (i) any change or amendment made to the Code, ERISA, or other applicable law, or to any regulations (whether final, temporary, or proposed regulations), or rulings or formal guidance issued thereunder, (ii) any interpretation, application, or enforcement (or any proposed interpretation, application, or enforcement), by a court of competent jurisdiction in the United States or by the IRS, of the Code, ERISA, or other applicable law, or any regulations or rulings issued thereunder, (iii) any regulations (whether final, temporary, or proposed regulations), or rulings or formal guidance issued by the IRS under the Code or ERISA or (iv) any provisions of this Agreement, including, without limitation, the provisions of this Section 4(b), would result in the Teams being disallowed a deduction (in whole or in part) for contributions made to the Post-Career Income Plan, then any obligation to maintain the Post-Career Income Plan pursuant to this Agreement shall, at the option of the NBA, terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right (A) to unilaterally implement during the term of this Agreement any terms concerning the provision of post-employment benefits to the players; (B) to lockout; or (C) to strike.
3. Notwithstanding anything else in this Agreement, if any event or occurrence, including, without limitation, (i) any change or amendment made to the Code, ERISA, or other applicable law, to any regulations (whether final, temporary, or proposed regulations), or rulings or formal guidance issued thereunder, (ii) any interpretation, application, or enforcement (or any proposed interpretation, application, or enforcement), by a court of competent jurisdiction in the United States or by the IRS, of the Code, ERISA, or other applicable law, or any regulations or rulings issued thereunder, (iii) any regulations (whether final, temporary, or proposed regulations), or rulings or formal guidance issued by the IRS under the Code or ERISA or (iv) any provisions of this Agreement, including, without limitation, the provisions of this Section 4, would result in the Qualified Plan no longer being a tax-qualified plan under Section 401(a) of the Code or would require NBA Teams to incur costs over and above any costs required to be incurred to implement the Qualified Plan in order to maintain its tax-qualified status under Section 401(a) of the Code (but only to the extent that such additional costs are incurred in connection with the provision of benefits to their non-player employees or to non-player employees of affiliates (within the meaning of Sections 414(b), (c), or (m) of the Code) of such Teams), then any obligation to maintain and/or make contributions in respect of the Qualified Plan pursuant to this Agreement shall terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right (A) to unilaterally implement during the term of this Agreement any terms concerning the provision of post-employment benefits to the players; (B) to lockout; or (C) to strike.
4. If the Taxable Allocated Share attributable to Eligible Players would be subject to a federal income tax rate higher than the rate that would apply if the Taxable Allocated Share were paid as Base Compensation, then any obligation to maintain the Post-Career Income Plan pursuant to this Agreement shall, at the option of the Players Association, terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement or the legally binding effect (if any) of any other provision of any prior collective bargaining agreement, nor shall it create any right (i) to unilaterally implement during the term of this Agreement any terms concerning the provision of post-employment benefits to the players; (ii) to lockout; or (iii) to strike.
5. In the event of a termination described in Sections 4(b)(2)-(4), the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by the NBA Teams to the players. The annual cost to the Teams of any such alternative arrangement (as determined on an after-tax basis) shall be substantially equal to but no greater than the annual cost that such Teams would have incurred under the Post-Career Income Plan on the date of termination. The cost of funding of any such alternative arrangement shall be as set forth in Section 4(d)(1). If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right (i) to unilaterally implement during the term of this Agreement any terms concerning the provision of post-employment benefits to the players; (ii) to lockout; or (iii) to strike.
Players Employed by Toronto. The terms of the Post-Career Income Plan shall continue to permit participation by Toronto Players on a tax-effective basis under Canadian income tax laws; provided, however, that a player shall not be eligible to participate in the Post-Career Income Plan for the period of time during which the player is a Canadian Resident but shall instead be eligible to receive a cash payment as described in Section 7 below. If the NBA and the Players Association should determine that the Post-Career Income Plan cannot continue to be provided to Toronto Players on a tax-effective basis under Canadian federal income tax laws or that either the Qualified Plan or the Non-Qualified Plan would become subject to Ontario’s Pension Benefits Act, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement to be provided by Toronto to the Toronto Players. The cost of any such alternative arrangement to be provided in any Contribution Year shall come from such year’s Team Funding Pool and shall equal an Eligible Player’s Allocated Share for such Contribution Year as reduced by all federal, state, local, payroll, or other tax obligations of any kind (including, where applicable, Canadian tax) applicable to such player as Toronto, in the exercise of its reasonable discretion, deems necessary. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right (1) to unilaterally implement during the term of this Agreement any terms concerning the provision of post-employment benefits to the players; (2) to lockout; or (3) to strike.
Funding.
1. For each Season, except as provided below, one percent (1%) of BRI for such Season (the “Additional Benefit Amount”) shall be used to fund the Team Funding Pool (or the alternative arrangement referenced in Sections 4(b)(5) and 4(c)); provided, however, that the Additional Benefit Amount for a Season shall be subject to reduction or elimination pursuant to Article VII, Section 12(b)(1). In no event shall the Additional Benefit Amount be used for any purpose other than as set forth in the immediately foregoing sentence. For purposes of all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of (i) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report, and (ii) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits), the amount to be included with respect to the Additional Benefit Amount shall be the full Additional Benefit Amount specified in this Section 4(d) and not the reduced Additional Benefit Amount provided for under Article VII, Section 12(b)(1).
2. For each Contribution Year, all or a portion of the Additional Benefit Amount as determined under Section 4(d)(1) (the “Team Funding Pool”) shall be used to fund the Post-Career Income Plan.
3. The Teams shall contribute the Team Funding Pool, less Tax Withholding, into the Post-Career Income Plan each November following the Contribution Year to which it relates or, if later, within one hundred and twenty (120) days following the completion of the Audit Report covering the November 1 of such Contribution Year.
4. For each Salary Cap Year in which the amortized portion of the amount to be included in BRI from applicable equity securities, pursuant to Article VII, Section 1(a)(13), exceeds $5 million, the NBA and the Players Association shall meet and confer to discuss in good faith the possibility of creating a funding pool equal to 50% of such amortized portion (the “Equity Proceeds Funding Pool”) to fund after-tax contributions to the Non-Qualified Plan for players who were Eligible Players in any of the years during the period beginning with the Salary Cap Year in which the equity securities were received and continuing through the first Salary Cap Year in respect of which contributions to the Non-Qualified Plan are made in respect of such equity. For clarity, in the event that the NBA and the Players Association agree to provide the above-described after-tax benefits, then, for purposes of all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of: (i) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report; and (ii) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits), the amount to be included with respect to the benefits shall be the amount of the Equity Proceeds Funding Pool and not the amount of the aggregate after-tax amounts contributed to the Non-Qualified Plan.
Additional Post-Career Income Benefits Costs. The NBA Teams shall pay all costs, including, without limitation, the cost of Professional Fees and other administrative services provided to the Post-Career Income Plan (but excluding the cost of contributions made to the Post-Career Income Plan) in connection with the operation and administration of the Post-Career Income Plan (or any alternative arrangement pursuant to Sections 4(b)(5) and (c)).

4.5 Labor-Management Cooperation and Education Trust.

Except as set forth below in this Section 5, as of the effective date of this Agreement, and continuing until the expiration or termination of this Agreement, the National Basketball Players Association/National Basketball Association Labor-Management Cooperation and Education Trust (the “Education Trust”) shall continue to be jointly operated and administered by the NBA and the Players Association in accordance with the provisions of the Agreement and Declaration of Trust Establishing the National Basketball Players Association/National Basketball Association Labor-Management Cooperation and Education Trust, as restated effective December 1, 2014, and as amended from time to time (the “Education Trust Agreement”). It is intended by the NBA and the Players Association that, at all times, the Education Trust shall comply with the provisions of Section 302(c)(9) of the Labor Management Relations Act of 1947, as amended, and shall qualify as an exempt organization under the provisions of Sections 501(c)(5) or 501(c)(3) of the Code.
The Education Trust shall continue to be operated and administered for the purpose of establishing and providing (1) health education programs, and (2) education, career transition, and career counseling programs designed to assist the NBA, NBA Teams, and NBA players in solving problems of mutual concern not susceptible to resolution within the collective bargaining process and to enhance the involvement of NBA players in making decisions that affect their working lives. The NBA and the Players Association agree to provide jointly-run financial education programming, which shall be operated and administered by the Education Trust, subject to the programming being structured to qualify as a permitted activity of an exempt organization under the provisions of Section 501(c)(5) of the Code. In the event that a jointly-run financial education program cannot be structured to qualify as a permitted activity of an exempt organization under the provisions of Section 501(c)(5) of the Code, the NBA and Players Association agree to meet and confer regarding the establishment of such program through a different vehicle than the Education Trust.
Alongside jointly-run financial education programs, the NBA and the Players Association shall each develop and implement such independent financial education programs as it deems appropriate to be offered on a voluntary basis in such forms and at such times as deemed appropriate by the NBA and the Players Association, respectively. The NBA and the Players Association agree to confer periodically to share details and thoughts on best practices with respect to such programs. The NBA and the Players Association shall be responsible for the costs of their respective independent programs and such costs shall be excluded for purposes of all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of (1) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report, and (2) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits).
The NBA and Players Association agree that, subject to the limitations set forth in this Section 5:
1. The amount to be paid by the Teams to fund the education and career counseling programs to be operated and administered by the Education Trust for the 2023-24 Salary Cap Year shall be no greater than $2,020,339;
2. The amount to be paid by the Teams to fund the career transition program to be operated and administered by the Education Trust for the 2023-24 Salary Cap Year shall be no greater than $893,397;
3. The amount to be paid by the Teams to fund the health education programs (or any programs that, pursuant to Section 5(g) below, are substituted for the health education programs) to be operated and administered by the Education Trust for the 2023-24 Salary Cap Year shall be no greater than $628,549;
4. The maximum funding amount for each of the programs described in Sections 5(d)(1)-(3) above shall be increased by five percent (5%) for each subsequent Salary Cap Year during the term of this Agreement after the 2023-24 Salary Cap Year;
5. For each Salary Cap Year, the amount to be paid by the Teams to fund the jointly-run financial education programs to be operated and administered by the Education Trust, if any, shall be mutually agreed upon by the parties; and
6. Payment of the amount necessary to fund the Education Trust in respect of each Salary Cap Year shall be made within thirty (30) days following the completion of the Audit Report for such Salary Cap Year.
The Education Trust shall be operated and administered in a manner that will result in all contributions by the Teams being fully deductible under the Code (and, where applicable, Canadian income tax laws) when paid. If any Team is disallowed a deduction (in whole or in part) for such contributions, and unless the NBA determines otherwise, the obligation to maintain the Education Trust and to make further contributions to the Education Trust shall immediately terminate; provided, however, that any such termination shall not impair the legally binding effect of any other provision of this Agreement, and shall not create any right (1) to unilaterally implement, during the term of this Agreement, any terms concerning the provision of education programs provided or to be provided by the Education Trust; (2) to lockout; or (3) to strike.
In the event of any termination pursuant to Section 5(e) above, the NBA and Players Association agree to bargain in good faith with respect to an alternative arrangement designed to provide the programs described in the Education Trust Agreement. Such alternative arrangement shall, to the extent permitted by applicable law, be funded by such monies as may then remain in the Education Trust and, if the monies remaining in the Education Trust may not lawfully be used for, or are insufficient for, such purpose, such alternative arrangement shall be funded, by the NBA Teams; provided, however, that the annual cost incurred by the Teams in connection with such alternative arrangement (as determined on an after-tax basis) shall not exceed the annual cost that such Teams would have incurred to fund the Education Trust commencing on the date of termination. Any such alternative arrangement shall be operated and administered in a manner that will result in all contributions by the Teams being fully deductible under the Code (and, where applicable, Canadian income tax laws) when paid; and, if funded by the Teams (and not out of existing monies remaining in the Education Trust), the costs of funding any alternative to the Education Trust shall be subject to the limitations set forth in this Agreement. If despite good faith negotiations, the NBA and the Players Association fail to agree with respect to an alternative arrangement as described above, such failure to agree shall not create any right (1) to unilaterally implement, during the term of this Agreement, any terms concerning the provision of programs provided or to be provided by the Education Trust; (2) to lockout; or (3) to strike.
Upon written notice delivered to the NBA at least six (6) months prior to the commencement of any Salary Cap Year, the Players Association may elect to terminate the programs currently provided by the Education Trust and substitute alternative programs; provided, however, that the NBA consents to such substitution, which such consent shall not be unreasonably withheld; and provided, further, that any new programs shall comply with the provisions of Section 302(c)(9) of the Labor Management Relations Act of 1947, as amended, and shall qualify as a permitted activity of an exempt organization under Section 501(c)(5) of the Code.

4.6 Additional Player Benefits.

Except as set forth below, the NBA shall provide the following additional benefits:

Workers’ compensation benefits in accordance with applicable statutes. Such benefits will be provided for players and Two-Way Players.
Funding for the annual Players Association High School Basketball Camp (or any substitute program mutually agreed upon by the parties) in the amount of $1,595,792 for the 2023-24 Season, increasing by seven and one-half percent (7.5%) per Season thereafter for the term of this Agreement.
A Player Playoff Pool for each Salary Cap Year in an amount equal to the greater of: (i) $31,014,350 multiplied by a fraction, the numerator of which is BRI for the Salary Cap Year immediately preceding the then-current Salary Cap Year and the denominator of which is BRI for the 2021-22 Salary Cap Year, and (ii) the amount of the Player Playoff Pool for the immediately preceding Salary Cap Year.
1. If, for a Salary Cap Year, the NBA increases the number of Teams participating in the playoffs above sixteen (16), then the Player Playoff Pool shall be calculated pursuant to Section 6(c) above and then increased by $615,000 for each Team added above sixteen (16) Teams.
2. Each year, the NBA will consult with the Players Association with respect to the method of allocation of the Player Playoff Pool.
3. The players on a Team that receive amounts from the Player Playoff Pool in respect of a Salary Cap Year shall not be permitted to share with Team personnel amounts that, in the aggregate, exceed five percent (5%) of the total amount received by the players on that Team, collectively, from the Player Playoff Pool in respect of such Salary Cap Year.
An In-Season Tournament Prize Pool for each Salary Cap Year in an amount equal to the total prize amounts paid to players in accordance with the following.
1. For each Salary Cap Year, the prize amounts paid to players shall be as follows:
  1. For the 2023-24 Salary Cap Year: (A) $500,000 to each “IST Player” (defined below) on the Team that wins the IST Finals Game; (B) $200,000 to each IST Player on the Team that loses the IST Finals Game; (C) $100,000 to each IST Player on a Team that loses an IST Semifinals game; and (D) $50,000 to each IST Player on a Team that loses an IST Quarterfinals game; and
  2. For each subsequent Salary Cap Year: (A) for each IST Player on the Team that wins the IST Finals Game, an amount equal to $500,000 multiplied by the “BRI Growth Factor” (defined below) for such Salary Cap Year; (B) for each IST Player on the Team that loses the IST Finals Game, an amount equal to $200,000 multiplied by the BRI Growth Factor for such Salary Cap Year; (C) for each IST Player on a Team that loses an IST Semifinals game, $100,000 multiplied by the BRI Growth Factor for such Salary Cap Year; and (D) for each IST Player on a Team that loses an IST Quarterfinals game, $50,000 multiplied by the BRI Growth Factor for such Salary Cap Year;
  provided, however, that for each IST Player, the applicable amount set forth in Section 6(d)(1)(i) or (ii) above shall be multiplied by a fraction, the numerator of which is the number of knockout stage games (i.e., IST Quarterfinals games, IST Semifinals games, and the IST Finals Game) for which the player was on the Team’s Active or Inactive List and the denominator of which is the total number of knockout stage games played by the Team. For the purposes of the calculation described in this Section 6(d)(1), a knockout stage game for which an IST Player was on a Team’s Active or Inactive List while under a Two-Way Contract or a 10-Day Contract shall count as one-half of a knockout stage game for which such player was on the Team’s Active or Inactive List. For example, if a Two-Way Player is on the Active or Inactive List of the Team that wins the In-Season Tournament for all four (4) of the Team’s knockout stage games during the 2023-24 Salary Cap Year, then such player will receive a prize amount equal to $250,000 (i.e., $500,000 (i.e., the amount set forth in Section 6(d)(1)(i)(A) above) multiplied by a fraction, the numerator of which is two (2) (i.e., one-half of a knockout stage game for each knockout stage game for which the Two-Way Player was on the Team’s Active or Inactive List), and the denominator of which is four (4) (i.e., the total number of knockout stage games played by the Team)).
2. For purposes of this Section 6(d), for each Salary Cap Year:
  1. An “IST Player” is a player who is on a Team’s Active or Inactive List for at least one (1) In-Season Tournament knockout stage game during such Salary Cap Year.
  2. The BRI Growth Factor for a Salary Cap Year is a fraction, the numerator of which is BRI for the immediately preceding Salary Cap Year and the denominator of which is BRI for the 2022-23 Salary Cap Year; provided, however, that the NBA and Players Association may agree to reduce the BRI Growth Factor for one (1) or more Salary Cap Years to a smaller fraction with value of no less than one (1).
The employer’s portion of payroll taxes.
The Players Association’s one-half share of the payment of fees and expenses to the Accountants (as defined in Article VII, Section 10(a) below) in connection with any audit conducted under this Agreement, and the Players Association’s one-half share of the payment of fees and expenses payable with respect to the TV Expert (as defined in Article VII, Section 1(a)(7)(ii) below) and any expert selected in accordance with Article VII, Section 1(a)(7)(i).
The Players Association’s share of the costs of the Anti-Drug Program as provided for by Article XXXIII.
The sum of the Compensation paid to each player with three (3) or more Years of Service who signs a one-year, 10-Day, or Rest-of-Season Contract for the Minimum Player Salary during a Season, less, for each such player, the Minimum Player Salary for a player with two (2) Years of Service. The Compensation paid to any such player shall be paid by the player’s Team pursuant to the terms of such player’s Uniform Player Contract, and then reimbursed to the Team out of a League-wide fund created and maintained by the NBA. Such reimbursement shall be made at the conclusion of the Season covered by the Contract.
One-half of the annual funding of $1.5 million for the NBA Players Legacy Fund that is provided jointly by the NBA and the Players Association.
Any additional contributions that may be required to be made to the Pension Plan because of any new law, change, or amendment made to ERISA, the Code, and/or any other applicable law or to any regulations (whether final, temporary, or proposed), rulings or formal guidance issued thereunder that is effective for a Plan Year that first begins after the effective date of this Agreement.
Costs of player attendance at the partner forums as set forth in the following sentence. For the purposes of enhancing career exposure and professional development, the NBA agrees to permit current and former players to attend partner forums held from time-to-time with NBA business partners, subject to advance notice by the players and there being a reasonable number of player attendees such that the primary purpose of the forums (i.e., to facilitate interaction between the NBA and business partners) will be maintained. To the extent reasonably practicable, the NBA agrees to provide the Players Association with advance notice of partner forums that it is aware of.
The Players Association’s one-half share of the costs of: (1) the Fitness-to-Play Panels as provided for by Article XXII, Section 11; (2) the player care survey as provided for by Article XXII, Section 12; and (3) the Wearables Committee, including, without limitation, the costs of retaining experts, as provided for by Article XXII, Section 13.
Costs described in Sections 1(i), 2(g), 3(e), and 4(e) above.
Costs attributable to the operation and administration of the Education Trust, including, without limitation, the cost of Professional Fees.
The cost of the Professional Fees and vendor fees in connection with the design, implementation, operation, and maintenance of an online benefits portal, the content, vendor, and other details of which shall be mutually agreed upon by the parties, to provide players access to their benefits information and benefit plan accounts and make transactions related to their benefits, as applicable.
The cost of premiums to purchase fiduciary liability insurance coverage applicable to the 401(k) Plan, the Pension Plan, the Post-Career Income Plan, and the Health and Welfare Benefit Plan.

4.7 Canadian Residents.

As of the effective date of this Agreement, and continuing until the expiration or termination of this Agreement, Toronto shall continue to provide the following benefits to Canadian Residents:

Definitions. All capitalized terms used in this Section 7 not otherwise defined in this Agreement shall have the meanings set forth below:
1. “Eligible Canadian Resident” shall mean a Canadian Resident who would be eligible to participate in the Pension Plan, the Post-Career Income Plan, the HRA Benefit, and/or the 401(k) Plan, in each case, but for the fact that he is a Canadian Resident.
2. “EHT” shall mean the Ontario Employer Health Tax.
3. “Gross Amount” for a Season shall mean, as applicable, the sum of:
  1. if the player is an Eligible Canadian Resident in respect of the Pension Plan, the annual accrual cost that Toronto would have incurred under the Pension Plan for such Eligible Canadian Resident for such Season but for the fact that he was Canadian Resident; and
  2. if the player is an Eligible Canadian Resident in respect of the Post-Career Income Plan, the amount of the per-player Allocated Share for such Season; and
  3. if the player is an Eligible Canadian Resident in respect of the HRA Benefit, the amount of the contribution to fund the HRA Benefit for such Season that such player would be entitled to under Section 3(a)(1) but for the fact that he is a Canadian Tax Resident; provided that, for the avoidance of doubt, the Gross Amount(s) previously allocated to such player in lieu of the HRA Benefit for years in which he was an Eligible Canadian Resident in respect of the HRA Benefit shall be applied against the $150,000 limit applicable to aggregate HRA Benefit contributions per player under the Health and Welfare Benefit Plan; and
  4. if the player is an Eligible Canadian Resident in respect of the 401(k) Plan, the amount of the Matching Contribution (as defined in the 401(k) Plan) for such season assuming that the Eligible Canadian Resident had made the maximum player deferral permitted under the 401(k) Plan for such Season.
4. “Adjusted Gross Amount” shall mean the adjusted gross amount that is equal to the Eligible Canadian Resident’s Gross Amount less the amount of EHT on such adjusted gross amount.
Cash Payment. For each Season during the term of this Agreement, each Eligible Canadian Resident shall be entitled to a single sum payment subject to the following terms and conditions:
1. The amount of the payment shall equal the Eligible Canadian Resident’s Adjusted Gross Amount in respect of such Season, less all amounts required to be withheld by any governmental authority, and less the employer’s share of payroll taxes for the Eligible Canadian Resident (the “Cash Payment”).
2. The Cash Payment shall be paid in Canadian dollars to the Eligible Canadian Resident by no later than the December 31 immediately following the end of the Season to which the payment relates. For purposes of calculating the Cash Payment, the Adjusted Gross Amount shall be calculated in U.S. dollars and then converted to Canadian dollars using the daily exchange rate quoted by the Bank of Canada for converting U.S. dollars into Canadian dollars on the first day of the month in which the Cash Payment is made, or if there is no such U.S. dollar to Canadian dollar exchange rate quoted for that date, the closest preceding date on which such exchange rate is quoted by the Bank of Canada.
Funding of Gross Amount.
1. The cost of the portion of the Gross Amount attributable to the Pension Plan, the 401(k) Plan, and the HRA Benefit shall be paid by Toronto and the cost of the portion of the Gross Amount attributable to the Post-Career Income Plan shall be funded from the Team Funding Pool.
2. The NBA Teams shall pay all costs incurred in connection with the determination and implementation of this Section 7, including, without limitation, the cost of Professional Fees (but excluding the cost of the Gross Amount).

4.8 Projected Benefits.

For purposes of computing the Salary Cap in accordance with Article VII, “Projected Benefits” shall mean the projected amounts, as estimated by the NBA in good faith, to be paid or accrued by the NBA or the Teams, other than Expansion Teams during their first two Salary Cap Years, for the upcoming Salary Cap Year with respect to the benefits to be provided for such Salary Cap Year. In the event that the amount of any benefit for the upcoming Salary Cap Year is not reasonably calculable, then, for purposes of computing Projected Benefits, such amount shall be projected to be one hundred four and one-half percent (104.5%) of the amount attributable to the same benefit for the prior Salary Cap Year.
For purposes of computing Projected Benefits, the amount to be included with respect to players with three (3) or more Years of Service who receive the Minimum Player Salary shall be the same amount included in Benefits with respect to such players for the immediately preceding Season.
For purposes of computing Projected Benefits with respect to a Salary Cap Year, the amount to be included with respect to the Additional Benefit Amount shall be one percent (1%) of Projected BRI for such Salary Cap Year.

4.9 Benefit Exclusion Amount.

An amount equal to the Benefit Exclusion Amount (defined below) shall be (1) paid by the Teams and (2) excluded for purposes of all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of: (i) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report; and (ii) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits).
The “Benefit Exclusion Amount,” for each Salary Cap Year, shall mean the sum of:
1. The “Pension Exclusion Amount,” which shall equal fifty percent (50%) of the portion of the increase in the amount of the actuarially-determined annual contributions to be made to the Pension Plan to fund the portion of the liabilities for the 2017-18 Benefit Increase (defined below) that is attributable to the Current Retiree Group (defined below), as determined by the actuaries of the Pension Plan. The “2017-18 Benefit Increase” means the increase in the Monthly Benefit from $572.13 to $812.50; and
2. Fifty percent (50%) of the portion of the increase in the amount of the actuarially-determined annual contributions to be made to the Pension Plan, and fifty percent (50%) of the portion of the increase in the cost under the Pre-1965 Players’ Excess Benefit Plan, to fund the 2017-18 Pre-1965 Benefit Increase (defined below). The “2017-18 Pre-1965 Benefit Increase” shall mean the increase in the Normal Retirement Benefit payable to a Pre-1965 Player and the “A portion” of the Retirement Benefit payable to a Pre-1965 Retiree from $300 to $400 per month for each Year of Pre-1965 Credited Service or Year of Eligible Pre-1965 Retiree Service, respectively; and
3. Fifty percent (50%) of the portion of the costs (including, without limitation, the cost of Professional Fees) that were approved by both an NBA designee and a Players Association designee as having been properly incurred in connection with the operation and administration of the Retiree Medical Plan (“Administrative Costs”), but only to the extent that such costs are attributable to the Current Retiree Group. The portion of the Administrative Costs for a Salary Cap Year that is attributable to the Current Retiree Group shall be determined by multiplying the total Administrative Costs for the Salary Cap Year by the “Allocation Percentage” (defined below) for such Salary Cap Year. The “Allocation Percentage,” for a Salary Cap Year, means the fraction, when expressed as a percentage, the numerator of which is the number of players in the Current Retiree Group who are enrolled in the Retiree Medical Plan on the day that is sixty (60) days prior to the last day of such Salary Cap Year, and the denominator of which is the total number of players who are enrolled in the Retiree Medical Plan on such date; and
4. Fifty percent (50%) of the portion of the contributions made by the Teams to the Health and Welfare Benefit Trust during the Salary Cap Year to fund the premium costs of the Retiree Medical Plan attributable to the Current Retiree Group. Such portion shall be determined by multiplying (i) the total amount contributed by the Teams to the Health and Welfare Benefit Trust during the Salary Cap Year to fund the premium costs of the Retiree Medical Plan by (ii) a fraction, when expressed as a percentage, (A) the numerator of which is the total premium costs paid by the Health and Welfare Benefit Trust to the insurer of the Retiree Medical Plan (excluding the participant share of premium contributions) that are attributable to the Current Retiree Group, and (B) the denominator of which is the total premium costs paid by the Health and Welfare Benefit Trust to the insurer of the Retiree Medical Plan (excluding the participant share of premium contributions) that are attributable to all players who are enrolled in the Retiree Medical Plan. Such premium costs shall be calculated based on the schedules provided by the insurer of the Retiree Medical Plan that set forth the monthly premium payments for each eligible retiree or any eligible dependent based on the applicable coverage level elected; and
5. Fifty percent (50%) of the portion of reimbursable tuition reimbursement and career transition benefits for players under the Health and Welfare Benefit Plan (as described in Section 3(a)(6) above) that is attributable to the Current Retiree Group; and
6. In respect of the Two-Way Player 401(k) Plan benefits, an amount equal to $40,000 multiplied by a fraction, the numerator of which is the Salary Cap for such Salary Cap Year and the denominator of which is the Salary Cap for the 2023-24 Salary Cap Year; provided, however, that the foregoing amount shall be decreased by thirty-three and one-third percent (33-1/3%) for any Salary Cap Year following the Players Association’s exercise of the PA Third Two-Way Option set forth in Article XXIX, Section 5(b); and
7. The amount that is the difference between (i) the portion of the premium costs paid to the applicable insurer(s) to provide the medical, prescription drug, dental, and vision insurance benefits to Two-Way Players as described in Section 3(a)(2)(iii), and (ii) the sum of the “Applicable Portion” (as defined below) for all Two-Way Players. The Applicable Portion for each such player shall be calculated by multiplying: (A) the total monthly premium payment for a Two-Way Player who elected that coverage level under the relevant Two-Way Players’ insurance policy that Season; by (B) a fraction, expressed as a percentage of a premium payment, the numerator of which is the portion of the total monthly premium payment contributed by an NBAGL player for the same coverage level under the corresponding insurance policy covering NBAGL players during the NBAGL regular season occurring within the Salary Cap Year immediately preceding that Season, and the denominator of which is the total monthly premium payment for that NBAGL player for the same coverage level under the corresponding insurance policy covering NBAGL players during the NBAGL regular season occurring within the Salary Cap Year immediately preceding that Season; and
8. The portion of the premium costs paid to the applicable insurer(s) to provide the life and accidental death and dismemberment insurance benefits to Two-Way Players as described in Section 3(a)(2)(i) above (excluding the cost of increasing such life insurance and accidental death and dismemberment benefits as described in Section 3(a)(2)(i) above); and
9. The amount equal to: (i) the premium costs under the workers’ compensation policy covering NBAGL players in the Salary Cap Year, divided by the average number per month of participants covered under such policy during the NBAGL regular season occurring within such Salary Cap Year; multiplied by (ii) the average number per month of Two-Way Players (excluding, for any month’s calculation, Two-Way Players who were signed or converted to Standard NBA Contracts in that or a prior month) during the Regular Season; and
10. In respect of the employer’s share of payroll taxes for Two-Way Players, an amount equal to $201,000 multiplied by a fraction, the numerator of which is the Salary Cap for such Salary Cap Year and the denominator of which is the Salary Cap for the 2023-24 Salary Cap Year; provided, however, that the foregoing amount shall be decreased by thirty-three and one-third percent (33-1/3%) for any Salary Cap Year following the Players Association’s exercise of the PA Third Two-Way Option set forth in Article XXIX, Section 5(b); and
11. Fifty percent (50%) of the cost of Professional Fees that were approved by both an NBA designee and a Players Association designee as having been properly incurred on or after the effective date of this Agreement by the Pension Plan’s and the Toronto Plan’s third-party administrator in connection with the administration of the Pension Plan and the Toronto Plan; and
12. Fifty percent (50%) of the portion of the cost of Professional Fees that were approved by both an NBA designee and a Players Association designee as having been properly incurred on or after the effective date of this Agreement by the Health and Welfare Benefit Plan’s third-party administrator that is attributable to the provision of insured benefits to current players as described in Section 3(a)(2) above; and
13. The portion of the contributions made by the Teams to the Education Trust during the Salary Cap Year to fund the jointly-run financial education programs or, if such programs are not operated and administered by the Education Trust, fifty percent (50%) of the portion of the costs that were approved by both an NBA designee and a Players Association designee as having been properly incurred in connection with providing such programs.
Benefit Reduction in Respect of Two-Way Salaries. Each Salary Cap Year, a portion of the Compensation paid to Two-Way Players equal to the “Two-Way Salary Exclusion Amount” shall be deducted from all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of: (x) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report, and (y) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits). The Two-Way Salary Exclusion Amount shall be an amount equal to $5,250,000 multiplied by a fraction, the numerator of which is the Salary Cap for such Salary Cap Year, and the denominator of which is the Salary Cap for the 2023-24 Salary Cap Year; provided, however, that the foregoing amount shall be decreased by thirty-three and one-third percent (33-1/3%) for any Salary Cap Year following the Players Association’s exercise of the PA Third Two-Way Option set forth in Article XXIX, Section 5(b).
Current Retiree Group and Current Player Group.
1. The “Current Retiree Group” shall mean those former players whose last day on an NBA Active List or Inactive List during a Regular Season occurred before the 2016-17 Season.
2. The “Current Player Group” shall mean those players whose last day on an NBA Active List or Inactive List during a Regular Season will occur during or after the 2016-17 Season.
3. If a player who is included in the Current Retiree Group for one or more Salary Cap Years returns to an NBA Active List or Inactive List and thereby moves to the Current Player Group in a later Salary Cap Year, the Benefit Exclusion Amount for the Salary Cap Year during which he returns to an NBA Active List or Inactive List shall be reduced by the amount of the portion of the Benefit Exclusion Amount for the prior Salary Cap Year(s) that is attributable to such player.
If the NBA and Players Association provide an alternative arrangement to any benefit referenced in Sections 9(b)(1) through 9(b)(8) above, the amount to be included in the calculation of the Benefit Exclusion Amount with regard to that alternative arrangement shall not exceed the amount referenced in the applicable part of Section 9(b) with regard to the benefit being replaced by that alternative arrangement for the most recent Salary Cap Year before such benefit was replaced.
For the avoidance of doubt, other than the Benefit Exclusion Amount and the Two-Way Salary Exclusion Amount, all amounts paid or to be paid during any Salary Cap Year by the NBA or the NBA Teams for or relating to the benefits described in this Article IV shall be included for purposes of all calculations called for under this Agreement of, or relating to, Benefits (including, without limitation, for purposes of (1) preparing the Audit Report, Interim Audit Report, or Interim Designated Share Audit Report, and (2) calculating Total Benefits, Total Salaries and Benefits, and Projected Benefits).