Fedex hi 5
#11
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
Yes, you are correct. After 2014 when the IRS limit and the FedEx cap were equal did away with any non-qualified pension payout.
#12
MG2
#13
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
Actually, I think even before then, there was some 'slight of hand' magic that was done that would allow for a fully qualified pension if you had the $260K high five. The calculation required a CRAY computer to handle it. But I recall the ALPA retirement folks talking about it during one of the retirement seminars.
MG2
MG2
I was very happy to get a nice lump sum check rather than a few hundred dollars extra every month, especially since I self insured my pension. Oh well, my ship has sailed and it is what it is.
#14
Gets Weekends Off
Joined APC: Nov 2013
Posts: 2,756
Jeez this sounds way more confusing than I thought it was. To clarify this for us simpletons....if you retire now, you are age 60 or over, with at least 25 years of service and have made at least 260K for your five year average, you should end up with 130K annual pension, right? For your average pilot, no extenuating circumstances. Right or wrong?
#16
My understanding it there is also now an option from the new contract that is the 50% Joint Survivor with a flex back option. This option if selected would allow you to snap back to the 130k amount in case your wife passed away before you. Like all things this too will cost you a fee taken from your 50% JS amount. Three years to go, so I guess I need to start looking at this stuff.
#17
Jeez this sounds way more confusing than I thought it was. To clarify this for us simpletons....if you retire now, you are age 60 or over, with at least 25 years of service and have made at least 260K for your five year average, you should end up with 130K annual pension, right? For your average pilot, no extenuating circumstances. Right or wrong?
MG2
#18
Gets Weekends Off
Joined APC: Nov 2013
Posts: 2,756
Glad to know it was what I thought. From talking to people, it sounds like it's generally better to take the straight line annuity and get a life insurance policy if you feel you need one. That is, if you are in good health and your spouse is the same age as you.
#19
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
My wife is six years younger than me and I was really amazed at how large a chunk they took to provide a survivor option. It was over 14% for the 50% survivor option and almost 25% for the 100% option.
#20
I learned a long time ago from an old Eastern captain to live within your means. Pay cash most of the time. Don't buy every friggin toy you see. Stay away from the crazy quick rich investments. I still live in the same house. Still the same wife (BIG PLUS). I have the airplane, boat, cars, and motorcycle. Not the latest and greatest of anything but all free and clear.
Also at age 70 and a half you have to begin withdrawing funds in increments from your 401K so that Uncle Sam can get his cut in taxes. I guess you can either live on what's left or reinvest it.
I was asking my brother who is a financial advisor with Merrill Lynch
the bit about getting an insurance policy and he certainly understood the practice but pointed out one facet for the policy to pay off. You have to die within the policy time frame. If your lucky enough to out live that time frame than you payed all that premium but get nothing for it. The last thing I want to do is to give my wife a million dollars on top of the well provided life she has. It would be like Ramada getting 2000 dollars from Charlie Sheen in Hot Shots and now she can just blow it all on hats.
Bottom line to all of this is that each one us needs to look at all the factors to determine what's best for him and his family. Cheers.
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