The long-awaited PGA Deferred Compensation program went live in April 2023 after years of intense work between the PGA of America and the IRS to carefully craft a program that can help participants build wealth for the future without running afoul of tax regulations. The first year of the program closed on March 31 of this year, consistent with the PGA of America’s fiscal calendar, and the second year of the program started on April 1, 2024.
From all accounts, the first year of PGA Deferred Compensation was a strong first step, with more than 6,000 PGA of America Members enrolling in the program. More than 1,200 of those Members maxed out their contribution at $1,500 based on the points they earned for participating activities.
“In the first year of PGA Deferred Compensation, we’re making $2.29 million in contributions to Members for their retirement, which is a really big success,” says Paul Fredericks, PGA Member Benefits Lead. “The program already has about as many participants as Golf Retirement Plus, which has been around for decades.”
The activities for which PGA of America Members can earn points toward PGA Deferred Compensation vary slightly by experience and career path, but all are ways of actively growing and serving the game and business of golf. Those include but are not limited to:
The program’s first year gave the Association plenty of data and ideas for improving the plan moving forward, and minor tweaks will be made along the way. In time, new activities for earning points will likely be added to the PGA Deferred Compensation program to make the initiative even more effective across different career paths.
“Last year gave us a lot to learn from, and the feedback has been overwhelmingly positive,” Fredericks says. “Already this year we’ve seen almost double the number of points accrued relative to the same time last year, and I think word of mouth is really helping spread the word. PGA Members are saying to each other, ‘This is good for your career and good for you, so get involved.’”
Indeed, PGA Deferred Compensation is a benefit that increases the value of being a PGA of America Member in two ways. First, the availability of a long-term option for building wealth is very attractive to prospective Members, which can provide incentive for PGA Associates to stay in the program and business. Second, the program provides an initiative for adding programming at your facility, such as PGA Jr. League or PGA HOPE programming, that makes you more valuable to your employer.
“If you start with PGA Deferred Compensation as a young PGA Member, it might not seem like a lot – but you have to see this as the first drip that eventually leads to filling the glass,” Lindert says. “When you look back after 25 years, you’ll have a nice annuity from doing the activities that you’re probably going to be doing anyway as a PGA of America Golf Professional.
“When you’re looking at your branding as a golf professional and your avenues for self-improvement, all the things that earn you points toward PGA Deferred Compensation help you to become more valuable to your employer and put you in a great position in your career.”
Another bit of incentive for PGA of America Members to enroll in PGA Deferred Compensation 2025 is the end of a Professional Development Requirement (PDR) points cycle. The activities that earn points toward PGA Deferred Compensation can also help accrue PDR points, which makes those activities even more valuable.
Golf Retirement Plus also continues to evolve and provide long-term wealth-building value for PGA of America Members through plans provided by Corebridge Financial that create the potential for tax-deferred earnings and a steady flow of income in retirement. Products purchased from more than 30 sponsors in the Golf Retirement Plus program are paid out at a percentage that varies between sponsors. Four new sponsors – Wilson, L2, Ouray and Shot Scope – have joined the program this year, and record contributions were paid out to PGA of America Members’ accounts over the first two quarters of 2024.
To Fredericks, participating in Golf Retirement Plus and PGA Deferred Compensation is a win-win for PGA of America Golf Professionals looking to maximize the value of their Membership.
“Whether you’re a PGA Coach or you work on the golf operations or executive management side, there are so many opportunities to get involved with these programs and earn retirement benefits while you’re helping grow the game,” Fredericks says.
“Obviously, getting involved in PGA HOPE, PGA Jr. League and Drive Chip and Putt goes a long way toward growing the game and the profession, and the products that Golf Retirement Plus sponsors provide help golfers enjoy the game while driving business at golf facilities. Getting involved with these programs is a way to make a difference to your personal bottom line and that of your business, as well.”