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Brown Cafe UPS Forum
UPS Retirement Topics
UPS Special Pension Buyout Offer - December 2016
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<blockquote data-quote="ExFinanceGuy" data-source="post: 2385302" data-attributes="member: 64430"><p>For example, if you are 45, your retirement begins at 65. In the past you have gotten a retirement estimate of $2,000 at 65, you would input the amount of $2,000, 204 as the number of cash flows (82-65 times 12), 4% as the discount rate, use 11/15/2016 as today's date since that is a rough estimate of the actual payout date, and first cash flow date of the month after your birth-date. Let's say 12/1/2036 if you are 45 years old. $133K. </p><p></p><p>Again, pretty rough estimate, very difficult to pinpoint what other factors UPS and their actuaries may throw into the equation. I believe the PBGC rates only allow up to a maximum of 4% for buyouts. This rate used to be based on Treasuries, but now has a mix in of Corporate bonds rates (bad for us, good for pensions). </p><p></p><p>Will be interesting to see actual number. While this looks like a large number to many, it pales in comparison to the lifetime of payments for you and your spouse, especially if you are in good health. </p><p></p><p>John</p></blockquote><p></p>
[QUOTE="ExFinanceGuy, post: 2385302, member: 64430"] For example, if you are 45, your retirement begins at 65. In the past you have gotten a retirement estimate of $2,000 at 65, you would input the amount of $2,000, 204 as the number of cash flows (82-65 times 12), 4% as the discount rate, use 11/15/2016 as today's date since that is a rough estimate of the actual payout date, and first cash flow date of the month after your birth-date. Let's say 12/1/2036 if you are 45 years old. $133K. Again, pretty rough estimate, very difficult to pinpoint what other factors UPS and their actuaries may throw into the equation. I believe the PBGC rates only allow up to a maximum of 4% for buyouts. This rate used to be based on Treasuries, but now has a mix in of Corporate bonds rates (bad for us, good for pensions). Will be interesting to see actual number. While this looks like a large number to many, it pales in comparison to the lifetime of payments for you and your spouse, especially if you are in good health. John [/QUOTE]
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UPS Special Pension Buyout Offer - December 2016
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