How does MLB's 10 years pension plan work? Explaining league's service time benefits

Playing ten or more seasons in MLB is a feat of epic proportions. While remaining in the league for such a long time is far from guaranteed, MLB ensures that for those who do, a safety net is made available. As we are about to find out, that safety net can be pretty comfortable indeed.

Pensions for MLB players and coaching staff are determined by a "Player’s Clock." This serves to measure the amount of playing time in the league, and beging ticking when a player is first added to a team's active roster. After a player or coach has spent a minimum of 43 days on an active roster, they will be eligible for pension benefits not exceeding $9,000 per annum for the rest of their life.

Although it is certainly nice to be entitled to $9,000 for a mere 43 days of league service, it takes much longer to reap the full benefit of the pension program. To qualify for the fully vested portion of the pension, a player must have put in ten years of MLB service - measured by a minimum of 173 days annually spent on an active roster or the injured list.

"It’s a big day for Kevin Pillar, who reached 10 years of service time. His pension is now fully vested. Fewer than 10 percent of MLB players reach 10 years of service time. He wore a suit to the ballpark." - Rhett Bollinger

Those who qualify for the ten-year vested portion of the program will be able to begin withdrawing $68,000 annually. However, if the individual waits until they are 62 years of age, an annual payment of $220,000 will be made available.

For some players, such as Kansas City Royals catcher Salvador Perez, the 10-5 rule applies. The Venezuelan is eligible because he has not just logged ten seasons in the league, but the past five years have been spent with the Royals. As such, Perez is given full veto authority on any potential trades involving him.

Number of ten-year MLB veterans has fallen since a decade ago

Although there are still plenty of veterans such as Pittsburgh Pirates icon Andrew McCutchen or Angels star Mike Trout, the figure has fallen in recent years. According to Baseball Prospectus, the number of ten-year pension eligible players fell by over 40% between 2011 and 2019.

As the league gets increasingly competitive, putting together a decade-long career becomes ever more impressive. As such, the league makes sure that such players are compensated adequately.