Mixed martial arts fighters in California received their retirement funds on Wednesday.

Gov. Gavin Newsom signed Assembly Bill 1136, the Mixed Martial Arts Retirement Benefit Fund, into law, the first of its kind in the United States. The bill from Assemblyman Matt Haney (D-San Francisco) would benefit the more than 400 MMA fighters currently licensed by the California State Athletic Commission.

A fighter would have to rack up 39 scheduled rounds of about 12 to 14 fights at commission-regulated MMA events starting in 2024 to get into the pension fund. The law, which will come into effect on January 1, 2024, does not apply retroactively to fighters.

MMA promotions have experienced tremendous growth over the past three decades, and the fighters who came to California to compete deserve compensation after their retirement, Andy Foster, executive officer of the State Athletic Commission, said in a statement. It’s time for MMA fighters to get their fair share.

The fund is not paid for with tax money. Instead, it is funded through ticket sales, sporting goods and souvenirs. One dollar from each ticket sold is earmarked for the fund.

California created the nation’s only pension for aging boxers. But it fails many of them

The California Professional Boxers Pension Plan, the only state-run pension plan of its kind, began paying eligible boxers in 1999. To date, the scheme has paid more than $4 million to at least 235 retired fighters. However, a further 200 boxers have not claimed the pensions due to them because in many cases they did not know they were eligible.

The Times examined hundreds of state documents and interviewed dozens of fighters, promoters and pension plan experts about California’s boxer pension, which covers the retirement accounts of more than 1,900 current and former boxers. The research showed that the pension scheme was often inadequate.

About 200 boxers could have claimed a pension in 2022, but only a dozen did so. The committee has failed to increase the amount of revenue generated for the pension to ensure that the plan is adequately funded and that the plan does not have enough money to pay all unclaimed pensions without increasing the amount of money reduction received by fighters who will become eligible in future years. Only $294,000 was set aside for the $2.1 million owed to boxers who had not yet been paid.

California will step up efforts to find boxers owed pensions following the Times report

The State Athletic Commission said it will begin sending annual statements to all established boxers starting in 2024 and has launched investigations to look for fighters with unclaimed money.

Haney read the Times investigation and amended his bill to require the commission to send annual statements notifying prospective established MMA fighters of their account balances.