Pension for beneficiaries

[aloha43]

Hello,

I hope I am in the right place to ask this question.

My husband is eligible to retire in Feb 2010. One of the other drivers told him that in order for me, as beneficiary, to receive his retirement after his death, that I would have to pay $1000 a month NOW and until his death, in order to collect his pension.

This sounds crazy to me, as it would be much cheaper to get a life insurance policy then to pay this.

Does anyone know anything about this, or does this UPS driver NOT know what he is talking about?

Thanks!

 

[ups79]

Your husband will recieve a packet listing amoung other things, spousal benefits if desired. You will have to sign off if he elects 100% of his pension. However he may take a lower pension(from 50%to 75%). As result by electing the lower amount you too would receive a amount according to age differences(a chart will outline your benefit). This is assuming your husband is an employee, not a management employee.

 

[aloha43]

Your husband will recieve a packet listing amoung other things, spousal benefits if desired. You will have to sign off if he elects 100% of his pension. However he may take a lower pension(from 50%to 75%). As result by electing the lower amount you too would receive a amount according to age differences(a chart will outline your benefit). This is assuming your husband is an employee, not a management employee.

He is a full time driver.

But....according to what you said...either way, would there be a $1000 per month payment for the beneficiary to keep the pension after he is gone?

This is all VERY new to us, and this amount seems ridiculous.!

Thank you for your response!

 

[ups79]

He is a full time driver.

But....according to what you said...either way, would there be a $1000 per month payment for the beneficiary to keep the pension after he is gone?

This is all VERY new to us, and this amount seems ridiculous.!

Thank you for your response!

I explain this way. When I retired full retirement benefit would have been $2800.00/month. I elected to, if I died before my wife, take the 50% spousal pension. I ended up receiving $2492.00/month. If I died bfore her she will receive $1246.00/month. In directly in costing us $308.00/month to allow my wife to have this pension upon my death. It also depends on the age difference of the employee and the spouse. If she were to die before me, I would revert back to receiving $2800.00/month. What you have to determine is whether or not you want the full benefits(in which case she will have to approve with a signed document) and applied the difference to a life policy for her, or do you wanted to take either the 75% or 50% spousal benefit.

 

[User Name]

Man these women, they can't wait to spend our money every week now she is worried when he dies how much she will get.