Accrued pension vs 30 and out pension


Active Member
ive looked over the new pension plan an it doesnt seem any different than the old one except that maybe the money will be there with ups as the responsible party.

i dont see why someone would take the 30 and out pension instead of the accrual pension. the and out is basically 100/year an the accrual is more than that. for instance 132 in 2008. could someone explain this? whats the pros an cons of each.i just dont see why someone would take the 25 an out or 30 and out when the accrual is more money.

i talked to the new plan rep today and at 55 year old with 35 years of service under either plan you would get 58% of the retirement due because your taking a penalty. so the change from 55 to 57 an retiring before 62 years old is a moot point if you have to take a reduced pension.


Well-Known Member
I think you have almost answered your own question. I do not have access to the actual numbers, but I think you have to be 62 or real close to it to make the accruel more beneficial. There is a 6% penalty for every year you are under 62 if you have more than 20 years of service.It is from 65 if you have less than 20 years. Under the Central States plan I would have made $3500 with 33 years at the age of 62. This is the amount showed when I ran it on the Central States site.


Well-Known Member
The actual age to receive a FULL pension is 64 and NOT 62. At least here in the east. For every year you aren't 64 you are penalized. I was going to go out Dec 31st of this year. I will be 60 Dec 7th. My monthly checks would have been 3542.00 a month with 24 years of service.If I wait until July 2009 I will take home 3960.00 and if I go Dec 31st of 2009 I will get 4011.00 . I will be 62 at that point. I can also draw SS IF Bush hasn't blown it all.
The closer you are to 64 when you retire the more money you get. Even if you don't have 30 years. In my case OLDER is better. I'm still in good shape and I think I can hold out another two years to get the extra 500.00 plus each month.Remember I am in the EAST. I hear they will have a max in the CS states of 3500.00


Well-Known Member
Our max is with the 30 and out method Withe accrued methond there is no limit. We have a mechanic with 40 years and it is estimated he will get between 4 and 5 thousand a month. Our retirement is figured at 62 here. I always knew there were differences in the language according to where you live, but I am starting to see that there are a lot more than I had believed.