How to retire like an NFL official

Congratulations to the NFL Referees Association, whose 121 members managed to hang on to a benefit that's nearly disappeared from the U.S. workplace -- a dependable, defined-benefit pension plan.

A five-year extension of the pension plan is part of a tentative eight-year contract announced early Thursday, ending a lockout of league officials that began in June. Negotiations reportedly intensified after replacement officials blew critical calls Monday night, costing the Green Bay Packers a win.

Yes, the agreement includes a decent pay raise. The average annual pay, $149,000 last year, will jump to $173,000 next year and to $205,000 in 2019. Actual pay is based on seniority, with rookie officials earning about half of that. 

But it was the pension plan that the referees and other officials were most concerned about. 

Here's what the NFL proposed, as explained by Michael Hiltzik of the Los Angeles Times:

One major issue is the NFL's insistence on changing the retirement plan for all refs from a traditional defined-benefit plan, based on the employees' pay and years of service, to a 401k-style defined-contribution​ plan. The defined-benefit plan covering existing refs would be frozen and terminated -- they'd get what they've earned so far, but no more. The referees union has already agreed to the changeover for all newly hired members but proposes to grandfather the old plan for existing refs, allowing them to continue to accrue benefits.

What was wrong with the NFL proposal?

The NFL looked cheap. The league, which took in more than $9 billion last year, would save a mere $3.3 million a year by switching officials to a 401k. "Helpless to stop themselves overspending on running backs and Aqualanga truffles, this year the owners figured they'd wring a few cents from the help by locking out the officials," wrote Jeff MacGregor on ESPN.

Those numbers made the NFL's argument look weak. Commissioner Roger Goodell argued that he and other non-player league employees are on a 401k plan, so that should be good enough for the officials. As Goodell noted, a pension is an option for very few employees these days.

Wrote Kim Peterson at our sister blog Top Stocks:

This scenario has been hitting workers across America for decades. Companies have been very successful at moving employees from pension plans to 401ks and other plans that are cheaper and less secure.

The officials essentially weren't impressed with the NFL's logic. "NFL referees have picked their battle over pensions for a reason: The 401k system is badly broken," said Demos' Policy Shop blog. 

The tentative agreement provides that the pension plan will continue for current officials for five years or until an official completes 20 years. In 2017, a 401k will take its place for all officials. "The annual league contribution made on behalf of each game official will begin with an average of more than $18,000 per official and increase to more than $23,000 per official in 2019," The Associated Press said of the 401k. And that's in addition to employer matches of employee contributions. Sweet.

Officials will vote on the contract Saturday when they meet in Dallas. "The freezing of the defined-benefit plan after five years might not be a popular concession with all officials because 96 of them would not reach the 20-year mark at the end of that five-year period," wrote Sam Farmer of the Los Angeles Times. "The pension plan caps at 20 years, and therefore 80% of the officials would not realize that pension goal." Nevertheless it's expected to pass.

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What do you think? I don't buy the line that NFL officials are overcompensated for what is described as a part-time job. Many officials -- 85% of whom have other jobs -- put in nearly 40 hours a week during the season -- including study, a weekly exam, film review and travel to and from games, Sports Illustrated has said. Not convinced? Read John Clayton's description of referee Ed Hochuli's average week. (It was Hochuli who organized weekly tests and conference calls to keep officials up to speed while they were locked out.)

They're not overpaid for a job that requires them to:

• Regulate supersized millionaires engaged in a brutal contact sport.
• Maintain a high level of physical fitness and mental quickness.
• Endure the critique and, at times, condemnation of millions of people.
• Have impeccable integrity.

If these guys don't deserve a great retirement plan, who does?

More from MSN Money:

• What really annoys NFL refs
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• How to avoid a retirement crisis