busdriver12

Certainly you aren't required to choose survivor benefit. Many people who are married choose not to select the survivor benefit, and get the entire pension. It's not required. You can also delay getting your pension, and it increases accordingly. For example, by delaying receiving your pension for a year, the pension will increase from 130K to approximately 142K per year. Sure wish we had a COLA, though.

Jetjok

However, I believe that if you select No Survivor Benefit, your spouse has to sign off on that selection.

JJ

busdriver12

I would hope that anyone still married at the point of retirement would be in agreement with their spouse on whether they desire to take the full pension or take a reduced one. Though it can be tough to adequately plan for all scenarios, because who knows when we will die? I think my optimum scenario is to delay a year, take the full pension and go for the 142K. But if my health declines, and something appears to seriously threaten my lifespan, I’ll change my mind, and keep max life insurance also.

KnightFlyer

I’ve looked at this a lot too. Getting life insurance instead of joint survivor would require me to get it before 60 and 20 year term. After 60 and/or 25 year term ramps the cost up big time. My wife wasn’t comfortable with life insurance running out when she hits 78 and then no survivorship after that. Schwab financial planner recommended the joint survivor options.

Deferring the pension does raise the benefit nicely but you need to look at the break even point. Deferring a year for me had a break even at just under 9 years.


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Jetjok

Although my situation was different than you guys, what I found, when I was ready to retire, was that I could convert my FedEx Group Policy to a Flexible Premium Adjustable Life Insurance Policy, that was offered by Lincoln National Life Insurance Company, a division of Lincoln Financial Group, which at the time was the company providing our FedEx Group life insurance.

I went out on LTD in 2007 and retired in 2012, while still on LTD. I too was wrestling with which retirement "plan" to take, because you only get one shot at making your selection. Once you retire, you're stuck with your selection, forever. I was leaning toward the Joint and Survivor Annuity 50/50 Benefit, but was also considering taking out life insurance, instead, thereby increasing my take home pay from my FedEx monthly retirement checks.

I ended up going with the life insurance policy mentioned above, not because it saved me money, but because the premiums never change, and I am covered by this policy until my 104th birthday. Another important reason I went this way is that when I die, my wife, or my son will get the face amount of my policy, in a lump sum, tax free!

Because I was on LTD at the time I retired, the individual policy was more expensive than if I had gone back to work and retired. I was told that the conversion to an individual policy from the group policy would have cost me approximately the same in monthly payments, as I had been paying while still flying at FedEx.

By the way, this policy is NOT a Term policy, but a form of Whole Life/Universal Life insurance that doesn't accrue any cash value.

Hope this helps or at least stimulates the discussion.

JJ

busdriver12

Good information, Jetjok. Now you have me wondering whether that’s the way to go.

Jetjok

It's something to check out to see if that option is still available. I'm sure you're not the only one who would like to know if it is.

KenandDeglan

The great negotiator chuck dyer will save us all by giving up everything to the company because that is yhe best we can get. Read up on the law suit

Nightflyer

Lawsuit? What lawsuit?

KenandDeglan

Its an old one during the great chuck dyers idiotic reign. Different opinions on it but I sincerely hope it wakes up our Union to give us the truth and Us as pilots to band together.

Here is the link http://static.politico.com/b1/9b/97ad537a4b44b8d49364de4a2e49/tennessee-union-lawsuit.pdf