Dying and pension?

Discussion in 'UPS Retirement Topics' started by Wally, Mar 1, 2014.

  1. Wally

    Wally Hailing from Parts Unknown.

    If one were to die before retiring, what funds (pension)does a spouse receive?
     
  2. brownmonster

    brownmonster Man of Great Wisdom

    Good question. I would imagine each fund is different.
     
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Ours is 50% for 5 years but this option must be chosen before the first pension check is disbursed. We have had too many cases where the Survivor's Benefits was not chosen, the member dies and the spouse ends up w/squat.


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  4. 1989

    1989 Well-Known Member

    You feelin ok? You look a little pasty.
     
  5. brett636

    brett636 Well-Known Member

    I'd imagine that unless there is some provision in your pension like the one upstate pointed out that allows your surviving spouse to receive something(assuming you took the steps to ensure this happens) your surviving spouse and or heirs get nothing. A pension is really more of a benefit than an asset mainly because its only good so long as you are still breathing. This is why its so important to contribute to your 401k because at least with that if something happens there is some sort of substantial(hopefully) savings you can pass on to your heirs and or leave for your surviving spouse. Redeeming a pension isn't guaranteed since we don't know how long we will live or even if we will live long enough to realize that benefit.
     
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I have to admit that I misread the thread title and based my advice on the assumption that the member had already retired. I would have to assume that if the member died and had the required number of years of service and was at least as old as the minimum age that the surviving spouse would receive the surviving spouse benefit. I don't know what would happen if the member dies before reaching either the minimum age or required years of service.
     
  7. Jones

    Jones fILE A GRIEVE! Staff Member

    Our pension can be setup so that your spouse will continue to receive your pension should you die first, the trade off is that you agree to a lower payout while you are still alive. There are different options, it's been a while since I eyeballed it but basically you choose to have your spouse get between 25% to 75% of your full pension and your payout while alive is adjusted down from the full pension depending on which percentage you choose. Should you die before you retire, your spouse is automatically entitled to the max percentage he/she could have received (75%) starting from the date that you were eligible for retirement.
    Check with your local to see if your pension has a similar provision.
     
  8. saintrick

    saintrick Member

    Full time UPS/IBT plan.

    If You Die Before You Retire
    If you die before you retire, your spouse or beneficiary may be entitled to certain benefits, as follows:
    50% Surviving Spouse Benefit
    If you die after you are vested or you are eligible for a retirement benefit, your surviving spouse will receive a monthly benefit from the Plan. Your spouse will receive 50% of the benefit you were entitled to receive as if you had terminated employment rather than died, and received your benefit as a Qualified Joint and 50% Survivor Annuity. Your spouse’s benefit
    will be based on the benefit you had earned as of your date of death and is not offset by your CSPF accrued benefit or any other UPS benefit plan payment.
    Payment of a surviving spouse’s benefit will begin on the date that would have been your Normal Retirement Date.
    However, your surviving spouse has the option to begin payment on the first day of the month following the date you would have first become eligible for retirement or, if later, the date of your death. Your surviving spouse must make an application to begin payments.
    Death Benefit
    If you have at least 10 years of Service Credit and die while in Covered Employment, but prior to your Normal Retirement Date (or within two calendar years after becoming an inactive participant), a lump sum death benefit of $10,000 ($4,000 for TCI Participants) will be paid to your surviving spouse. If you have no spouse at your death, the death benefit will be paid to
    your dependent children, if any, in equal shares. This death benefit is payable in addition to the 50% Surviving Spouse Benefit described previously.
    If You Die After You Retire
    Remember, if you die after your monthly retirement benefits have started, benefits will be paid to your spouse or other
    beneficiary only if the payment form you elected provides for such benefits.

    UPS part time pension

    If You Die Before You Retire
    If you die before you retire, your spouse or beneficiary may
    be entitled to certain benefits, as follows:
    Qualified Pre-Retirement Joint
    and Survivor Annuity
    If you die after you become vested in your Plan benefit but
    before your retirement benefit payments begin, your surviving
    spouse will receive a monthly benefit from the Plan (called
    the Qualified Pre-Retirement Joint and Survivor Annuity). Your
    spouse will receive 50% of the benefit you were entitled to
    receive if you had terminated employment rather than died,
    and received your benefit as a Qualified Joint and Survivor
    Annuity. Your spouse's benefit will be based on the Service
    Credit you had earned as of your date of death.
    Payment of a surviving spouse's benefit will begin on the
    date that would have been your Normal Retirement Date.
    However, your surviving spouse has the option to begin
    payment on the first day of the month following the date you
    would have first become eligible for retirement or, if later,
    the date of your death. Your surviving spouse must make
    an application to begin payments.
    Death Benefit
    If you are vested, have at least five years of Service Credit,
    die while in active employment with any UPS Related
    Company (even if not in Covered Employment), are not
    married and have not begun receiving your Plan benefit, your
    beneficiary will be paid a death benefit equal to:
    1) $100
    times
    2) Your years of Service Credit (up to the maximum number
    of years recognized in your Accrued Benefit).
    Note: Your beneficiaries are your children, or if you have
    none, your estate.
    If You Die After You Retire
    Remember, if you die after your monthly retirement benefits
    have started, benefits will be paid to your spouse or other
    beneficiary only if the payment form you elected provides
    for such benefits.
     
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  9. Wally

    Wally Hailing from Parts Unknown.

    Good info. We were talking about this at work and nobody knew. We have a number of folks working with full credit for pension. Something else to consider if working after you are eligible for retirement.
     
  10. 3 done 3 to go

    3 done 3 to go In control of my own destiny

    With the way my career at UPS has gone. It would figure my demise
     
  11. Funfact

    Funfact Well-Known Member


    The rules vary depending on what pension fund you are in....

    You need to read the rule and regulations for the pension fund that your are in....
     
  12. 104Feeder

    104Feeder Phoenix Feeder

    In the WCTPF, your spouse would receive 66 2/3% of the benefit you would have received immediately after your death if you had recent coverage (1500 hours of service in any 60 month period, and full PEER 80 if you have that after 25 years of contributory service).

    If you don't have recent coverage it's 50% and not effective until the date you would have turned 55.

    So if you are going to kick the bucket prior to your PEER 80 date, do it after 25 years of service and work at least 1500 hours in the prior 60 month period.
     
  13. 1989

    1989 Well-Known Member

    So if you are going to kick the bucket prior to your PEER 80 date, do it after 25 years of service and work at least 1500 hours in the prior 60 month period.



    So another words, plan ahead before you die.
     
  14. upschuck

    upschuck Avatar bet gone wrong

    All I know is I'm dying to be able to take my pension, several years out though.:hangin:
     
  15. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You may think this funny but we have had two widows who ended up with zilch after their UPS retiree spouses passed away. Neither had chosen the SSB or had thought to purchase sufficient life insurance with the extra money in their pension checks.
     
  16. beentheredonethat

    beentheredonethat Well-Known Member

    Not funny at all, very sad actually. I know for mgmt pension the default is to pick the surviving spouse option and the only way not to pick that option is if the spouse signs and agrees to not take this option. I can't imagine a situation where I would even contemplate not providing for my wife in the event I die. I have heard of some who take the "difference in money" and buy a life insurance policy. To me, I'd rather have the safety of knowing my wife has a pension (and SS) to rely.
     
  17. lytkep

    lytkep New Member

     
  18. lytkep

    lytkep New Member

    Pensions are taxable as well as SS. Insurance is not.
     
  19. Mark Rauzon

    Mark Rauzon New Member

    If you are already retired and pass away would your spouse continue with medical benefits or would those also stop with the pension payments?
     
  20. upschuck

    upschuck Avatar bet gone wrong

    Teamcare people get 5 years of spousal benefits after members death. New in contract.