So Many Pension Payment Options. What To Consider?

Discussion in 'UPS Retirement Topics' started by olroadbeech, Nov 10, 2014.

  1. olroadbeech

    olroadbeech Happy Verified UPSer

    we recently received my pension payment options and it is so confusing. I think there are 19 different options.

    its just me and my spouse. I can almost bet I will outlive my spouse. I am also 5 years shy of social security when I retire.

    I am leaning on taking the option where you get $300 a month more till you are 62. then it drops down.

    I am going to have another interview with the pension guy but don't even know where to begin with the questions.

    so for you people that have already retired. what option did you take and why?? maybe your feedback will help us make the right decision.

    thanks.
     
    Last edited: Nov 10, 2014
  2. cragmont

    cragmont New Member

    You can elect to get 100% of your pension and your spouse nothing if you predecease her.

    You can elect to bring your spouse along and get a reduced monthly pension for her to get 100%,75%, and 50% if you predecease her.

    The larger her percentage the greater the reduction in your monthly pension.

    In my particular local, my pension is reduced $400/mo for her to get 100%

    If you are in good health you can get a term life insurance policy on yourself and make her the beneficiary

    I elected to get 100% and secure a 25 year term policy...$169mo per every 250K in the event I died before her, so I have that coverage until I am 82.

    My SS has no effect on my pension

    If you are sure you will outlive her, take 100%, but you never know, that would be taking a chance
     
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    If you choose to take the 100% option you might want to consider getting a term life insurance policy so that your spouse will not be left high and dry if you pass away.
     
  4. You could be,healthy as a horse. Wouldn't stop you,from getting hit by a car.
    Never know,could happen to any of us!
     
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  5. Wally

    Wally Hailing from Parts Unknown.

    How far out in year does one go with pension maximization? Life insurance gets expensive with age.
     
  6. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Term insurance is still relatively inexpensive, even at that age.
     
  7. Wally

    Wally Hailing from Parts Unknown.

    What happens if you go at age 83? How much does your spouse get?
     
  8. burrheadd

    burrheadd Superstar

    7 Bazillion
     
  9. cragmont

    cragmont New Member

    She would have already divorced you
     
  10. Wally

    Wally Hailing from Parts Unknown.

    Then I'm all set!
     
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I had sent an e-mail to our local pension office requesting a print out of my pension status. I received a letter from them today with some good news----I will be eligible to retire on 7/1/2018 with a projected pension payment of $4,329.82/month (after my ex gets her 16%). I thought I wouldn't be eligible until sometime in the first part of 2019 so this is really good news----instead of having 5 Peaks left I only have 4!
     
  12. upschuck

    upschuck Avatar bet gone wrong

    Was she a nurse when you were married? Do you get part of her pension, if she has one?

    Good for you. You will also get out before the next contract, might want to wait to get a higher pension.
     
  13. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Believe it or not, she will not be getting a pension from any of the hospitals that she has worked at. If she were she wouldn't be getting as much of or perhaps any of my pension at all.

    Ours is a Teamster plan and the monthly payment does not change from contract to contract; in fact, drivers who retired in the '70s and '80s are receiving $6-8K/month.
     
  14. Wally

    Wally Hailing from Parts Unknown.

    You folks have a great pension system for sure.
     
  15. upschuck

    upschuck Avatar bet gone wrong

    They'd been making twice retired, what they'd been working. I don't believe that at all.
     
  16. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I didn't at first but it is true.
     
  17. upschuck

    upschuck Avatar bet gone wrong

    Your pension hasn't gone up in 40 years? That is crazy.
     
  18. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Although it is still one of the highest in the nation it has gone down over the past 10-20 years.
     
  19. PT Car Washer

    PT Car Washer Well-Known Member

    My dad retired in the 80's on $900.00 a month. Central States.
     
  20. upschuck

    upschuck Avatar bet gone wrong

    You might want to get out before the next contract then. Here they usually wait for the next contract, because it almost always goes up.