How did you take your retirement payout?

[Automaton]

I believe it is age 62, not 60. Regardless, I was replying to Quad regarding a pension for 40 years.

The Central is $4300 for 35 years at any age plus an additional $175/mo for every year worked past 35.

This is pretty much straight from the Central contract:

Years of Service Pension Credit (for those who retired prior to Jan 1, 2020)
35 years/Any age/$3900
30 or more years/Any age/$3,400 plus $100/yr of service for years over 30 up to $3,900
25 years/Any age/$2000 up to age 57
25 years/57 or older/$2,500 plus $100/yr of service for years over 25 up to $3,500maximum.

Effective January 1, 2020, the following enhancements will be im- plemented:
35 years, any age—$4,300
30 or more years, any age—$3,800 plus $100/yr of service for years over 30 up to $4,300

I couldn't find anything that suggests $175/mo on top of the $4300 years of service credit for additional years over 35. I believe the $175/mo figure pertains to the alternate calculation method, and only comes into play if that method pays more than the years of service would. It's certainly possible to make more than $4300/mo, and from what I've seen the retirement calculator will show you the larger payout of the two. It's a shame qdg2 couldn't get it to work. But I believe it might still be possible to approximate what the alternate payout would have been if you can track down the previous accrual rates and how many years worked under each of those rates.

 

[Trucker Clock]

This is pretty much straight from the Central contract:

Years of Service Pension Credit (for those who retired prior to Jan 1, 2020)
35 years/Any age/$3900
30 or more years/Any age/$3,400 plus $100/yr of service for years over 30 up to $3,900
25 years/Any age/$2000 up to age 57
25 years/57 or older/$2,500 plus $100/yr of service for years over 25 up to $3,500maximum.

Effective January 1, 2020, the following enhancements will be im- plemented:
35 years, any age—$4,300
30 or more years, any age—$3,800 plus $100/yr of service for years over 30 up to $4,300

I couldn't find anything that suggests $175/mo on top of the $4300 years of service credit for additional years over 35. I believe the $175/mo figure pertains to the alternate calculation method, and only comes into play if that method pays more than the years of service would. It's certainly possible to make more than $4300/mo, and from what I've seen the retirement calculator will show you the larger payout of the two. It's a shame qdg2 couldn't get it to work. But I believe it might still be possible to approximate what the alternate payout would have been if you can track down the previous accrual rates and how many years worked under each of those rates.

Correct. There is a service pension, up to 35 years. Anything over 35 years becomes a contributory pension, with an additional $175/mo for each year past 35 years. I believe there is a reduction for the combined service credit if you're under 62 when you retire with more than 35 years. So, depending on age, the service pension of $4300 may be more than the contributory pension, until you get closer to 62.

and only comes into play if that method pays more than the years of service would.

It comes into play when you work more than 35 years, depending on age. And I replied to @qdg2, who had more than 42 years in. So I was assuming he was at least 62, to be eligible for the unreduced contributory pension.

Run the retirement calculator with different scenarios. You will find that if you retire at 40 years instead of 39 years, you will receive an additional $175/mo more than 39 years.

If you retire after 41 years instead of 39, you will receive an additional $350/mo more than 39 years.

Here's mine at 39, 40 and 41 years. My 35 year pension is $4300.

 

[Automaton]

Correct. There is a service pension, up to 35 years. Anything over 35 years becomes a contributory pension, with an additional $175/mo for each year past 35 years. I believe there is a reduction for the combined service credit if you're under 62 when you retire with more than 35 years. So, depending on age, the service pension of $4300 may be more than the contributory pension, until you get closer to 62.



It comes into play when you work more than 35 years, depending on age. And I replied to @qdg2, who had more than 42 years in. So I was assuming he was at least 62, to be eligible for the unreduced contributory pension.

Run the retirement calculator with different scenarios. You will find that if you retire at 40 years instead of 39 years, you will receive an additional $175/mo more than 39 years.

If you retire after 41 years instead of 39, you will receive an additional $350/mo more than 39 years.

Here's mine at 39, 40 and 41 years. My 35 year pension is $4300.

View attachment 415464

When I ran similar scenarios through the calculator, I learned that in my case the years of service pension actually gets replaced by the contributory pension at approximately 32 years. So even if I work 35 years, I should get more than $4300/mo. For example, if I retire on 3/1/2023 the number for me is $3800/mo, which is still under the years of service plan. But looking ahead to 3/1/2024 the number jumps to $4171.40/mo, which is no longer a nice even years of service number.

 

[Trucker Clock]

When I ran similar scenarios through the calculator, I learned that in my case the years of service pension actually gets replaced by the contributory pension at approximately 32 years. So even if I work 35 years, I should get more than $4300/mo. For example, if I retire on 3/1/2023 the number for me is $3800/mo, which is still under the years of service plan. But looking ahead to 3/1/2024 the number jumps to $4171.40/mo, which is no longer a nice even years of service number.

How many years on 3/01/2023 and what age to get that $3800/mo?

30 years is $3800 at any age.

 

[Automaton]

How many years on 3/01/2023 and what age to get that $3800/mo?

30 years is $3800 at any age.

Yes, 30 years of service as of 3/1/2023. I'll hit 31 years of service sometime this summer I believe.

 

[Trucker Clock]

Yes, 30 years of service as of 3/1/2023. I'll hit 31 years of service sometime this summer I believe.

So you're saying that after 31 years, you will get $4171.40/mo instead of the service pension of $3900 for 31 years?

 

[Automaton]

So you're saying that after 31 years, you will get $4171.40/mo instead of the service pension of $3900 for 31 years?

Essentially, yes. Somewhere between 31 and 32 years (in my case), the years of service pension becomes the lower payout and gets kicked to the curb. That number won't be the same for everyone, though. The figure is based on how long you worked under the different contracts through the years, and takes into account any time you may have missed due to layoffs, injuries, illnesses, etc. Also, once you're not on the years of service plan, you no longer need a full year of credit to see a bump. You should then see a small bump for every month you work.

 

[Trucker Clock]

Essentially, yes. Somewhere between 31 and 32 years (in my case), the years of service pension becomes the lower payout and gets kicked to the curb. That number won't be the same for everyone, though. The figure is based on how long you worked under the different contracts through the years, and takes into account any time you may have missed due to layoffs, injuries, illnesses, etc. Also, once you're not on the years of service plan, you no longer need a full year of credit to see a bump. You should then see a small bump for every month you work.

That‘s why I can’t understand why @qdg2 only got $4300, or whatever amount he got. He seemed to indicate it was far less than $5000. He was at least 62 and had 42 years in.

 

[Automaton]

That‘s why I can’t understand why @qdg2 only got $4300, or whatever amount he got. He seemed to indicate it was far less than $5000. He was at least 62 and had 42 years in.

I didn't notice that he actually said he was in the Central. I just posted the contract language in case he was. But for people who worked under previous contracts, the accrual rate was lower for most of those years. In my case, I missed several years earlier on for various reasons, so it works out for me that my years are weighted more toward the recent, higher accrual rates. It hasn't always been $175.00. But consider this - Someone starting out in Jan 2019 and works 30 years with no time lost would have a pension payout of 30 x 175 = $5250/mo.

edit. That's assuming the accrual rate doesn't change in the future.

 

[Trucker Clock]

I didn't notice that he actually said he was in the Central. I just posted the contract language in case he was. But for people who worked under previous contracts, the accrual rate was lower for most of those years. In my case, I missed several years earlier on for various reasons, so it works out for me that my years are weighted more toward the recent, higher accrual rates. It hasn't always been $175.00. But consider this - Someone starting out in Jan 2019 and works 30 years with no time lost would have a pension payout of 30 x 175 = $5250/mo.

edit. That's assuming the accrual rate doesn't change in the future.

The Southern pretty much mirrors the Central.

It was $132 in 2008, but jumped up to $170 in 2013. Then jumped to $175 in 2018.

His accrual shouldn’t be that far off from us to only get $4300.

 

[Automaton]

The Southern pretty much mirrors the Central.

It was $132 in 2008, but jumped up to $170 in 2013. Then jumped to $175 in 2018.

His accrual shouldn’t be that far off from us to only get $4300.

The way he described it makes me wonder if they just gave him the years of service pension and failed to consider the contributory pension. If it were me, I would definitely want to look into that and see if it somehow got overlooked.

 

[Trucker Clock]

The way he described it makes me wonder if they just gave him the years of service pension and failed to consider the contributory pension. If it were me, I would definitely want to look into that and see if it somehow got overlooked.

I was thinking the same thing.

 

[BrownFlush]

I'm $3k a month. Been there since 2009.
To draw that amount each month you would need $754,000.00 in something decent.
My contribution to the fund was $174,000.00 over 30 years. I never felt a thing.
So far, I have drawn $486,000.00.

 

[Shiftless]

When I was retiring, a friend who was 67 at the time and I was 49 and we were retiring within months of each other.

He worked for a Pepsi distributer. Drove a semi that fed the smaller delivery trucks from distribution points.

They didn't have a peer program or anything similar other than he was a teamster. He had 35 years in and I had 30. along with him being 18 years my senior in age.

He was shocked when we exchanged retirement numbers. Actually very pi $ $ ed.

He was to get a third of what I was going to get.

I recommend if possible, anyone thinking of quitting and too young to retire under the peer program, ride out your time in the peer program as its value is only there if you make it to actual retirement age. Leave early? Whole different animal!

 

[BrownFlush]

When I was retiring, a friend who was 67 at the time and I was 49 and we were retiring within months of each other.

He worked for a Pepsi distributer. Drove a semi that fed the smaller delivery trucks from distribution points.

They didn't have a peer program or anything similar other than he was a teamster. He had 35 years in and I had 30. along with him being 18 years my senior in age.

He was shocked when we exchanged retirement numbers. Actually very pi $ $ ed.

He was to get a third of what I was going to get.

I recommend if possible, anyone thinking of quitting and too young to retire under the peer program, ride out your time in the peer program as its value is only there if you make it to actual retirement age. Leave early? Whole different animal!

Terrible to be that old and see that news on paper.

 

[Coldworld]

I'm in NorCal of the Western. There were 18 different options. 9 covering if you took an early death benefit lump sum in the event of retiree's death within the first 4 years of retirement, and the same 9 without a lump sum early death benefit. The lump sum death benefit within the first 4 years is kind of a temporary life insurance policy and reduces your monthly payout. Mine was $50k. I declined that option, so that left the 9 without the lump sum.

I took the "stepdown" if that's what you're calling it. On my paperwork it's called spouse benefits. The stepdown, called a "benefit adjustment option" in my paperwork, is an option to take more money monthly now, and have your monthly pension reduced at either 62 or 65. I opted for the benefit adjustment at 65. I retired at 49 and figured get as much now as possible and I can't touch my 401k until 59 1/2, or collect SS until 62. It's a reduction of $300/mo and I figure I'll take SS at 62 that'll cover that reduction, and have my 401k as play money. Spousal benefits go away if my spouse should pass before myself, and monthly pension payments revert to the level had I not opted for a spousal benefit. If I pass first, obviously the spousal benefit kicks in.

Healthcare is through the union, but more specifically through the local. We opted many years ago to have $0.41/hr taken off our hourly wage diverted towards retiree medical coverage.It was up to $0.89/hr by the time I retired. So now I pay $0/mo towards health/dental/vision/prescriptions. I calculated that I had diverted around $25k towards this over the years. My wife had a surgery in my first year of retirement, bill $36k. The diversion was worth every penny, as that was 100% covered and I paid a $15 co-pay. And I'm still not paying a dime towards coverage for the rest of my life. Once Medi-Care kicks in at 65, the local union coverage will still pay for various parts of extended Medi-care. Don't ask me which ones, I'm only 54 and haven't looked that deep into it yet.

I have taxes deducted from the monthly pension payments.

Seeing threads of how much a month a retiree takes in per month from his retirement plan doesn't tell the whole story.

Sure be nice to see the whole picture of what plans are/were available by region and or conference, but as you notice below, plans are different even with in region and conferences.

Obviously I don't know all the plans and what is offered. I know in the Western Conference it is different within the plan. Some locals get Teamster insurance and some get to stay on the UPS plan a RPCD gets. Altho the UPS plan when you turn 65 becomes your secondary to Medicare if you choose to do so.

In the Western Conference monthly pay outs to retiree's per month can vary by selection of disbursement at time of retirement in the region I retired from. As an example: I was able to choose from if I remember correctly 4 option's??? The option I chose was a step down initially per month to allow my Spouse to keep receiving my (our, she was there with me the whole time) pension. In that option included a small step down at age 62 when I was eligible for SS whether I took it or not. Having retired at age 49 The money which is important was not my goal as I needed to know I had health insurance available to me till I at least hit Medicare. At 49 and even today, I am Happy with my decision and financial situation.

How did you take your retirement?

Healthcare from Union source or still provided by UPS?
Took the full amount offered without any pass along to a spouse upon retiree's death.
Spouse step down wasn't offered.
Took the step down for the wife.
Other options?
Pay my own quarterly's Y/N?

As a side note: My buddy who is a retired USPS employee was able to add a wife and then when they divorced buy her time back and retain his higher monthly take home! Obviously you have to run the numbers to do this to see if it pans out. In his case he has lived longer than the the buy back and it was a good decision financially.

Do you know at what age you’re going to take SS… I would like to take it at 62 at the reduced rate since I will have the pension and other money coming in but my financial guy is insisting I wait til 70 so when I croak my wife will get the larger payout…any thought on this??

 

[IVE GOTTA PACKAGE 4U]

Do you know at what age you’re going to take SS… I would like to take it at 62 at the reduced rate since I will have the pension and other money coming in but my financial guy is insisting I wait til 70 so when I croak my wife will get the larger payout…any thought on this??

There's 500 different answers to this

 

[Coldworld]

There's 500 different answers to this

What are you going to do???

 

[Thebrownblob]

What are you going to do???

A van down by the river,,,,,

 

[IVE GOTTA PACKAGE 4U]

What are you going to do???

I'm leaning on taking it early
Go to social security. Gov
You can get your social security estimates from age 62 through 70
There is a big difference in the number

At 62 I'm around 2300 at 70 it's 4000