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Increases retirement option awareness
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Reduces the cost for members choosing a survivor pension
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Provides for a tax-free spousal income benefit
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Allows for a rebate of costs should the spouse die first
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Tax-free lump sum settlements for your family upon premature death
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Provides necessary risk management to cover tax liabilities on the members field annuity at death
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Increases retirement income for all members
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Valuable disability income coverage 24 hours a day (if you qualify)
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Allows member Tax-Deferred savings options
Union Member Pension Plan Example:
Options for Monthly Benefit at Retirement:
Option #1 Life only Benefit*
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$3450 Per Month: You receive this as long as you are alive
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Upon your death: your spouse will receive nothing
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*Based on 30 years of continuous service crediting $115 monthly.
Option #2 Employee & Spouse
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$3105 Per Month: You receive this as long as you are alive
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$1552 Per Month: Your spouse will receive this upon your death
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$345 Per Month: The amount your income is reduced by including the Spouse Benefit
Why modify your plan? Consider the following circumstances:
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Your age: 55
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Spouses age: 52
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Life expectancy: 22 years
$345 loss per month x 12 months is a $4140 yearly loss. Over 22 years that totals a $91,080 loss by including the Spouse Benefit. Once both retiree and spouse die, there is no benefit for children, grandchildren, church or charity.
Option #3 Pension Maximizer
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You select the Life only Benefit
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$3450 Per Month: You receive this as long as you are alive
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$345 Per Month: You pay this each month for Life Insurance
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$400,000 Member Lump-Sum Death Benefit (Income Tax Free)
Income for Spouse with Pension Maximizer: 6.5% of Principal "After-Death"
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In the bank: $400,000
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Annual: $26,000
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Monthly: $2166
Pension Amount for Surviving Spouse
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Under Employee and Spouse Plan: $1552 (Option #2)
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Under Pension Max $2166 (Option #3)
Please note that the above numbers are estimates and are not intended to represent final pension benefits.
Click the photo below to watch a short video on Spousal Pension Max.
