Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What happens when you die? Does you spouse or kids get it?

It goes to spouse if you select survivor benefit option

The default on our plan is that the surviving spouse gets half. If your spouse is willing to waive the benefit, you can get a higher pension. You can also elect a lower pension with a higher survivor spouse benefit.

If you elect a survivor benefit option, it has a large premium, which you’ll start paying as soon as you start receiving the pension.

"'Defined' means income for life." Not true.

From Forbes: https://www.forbes.com/advisor/retirement/defined-contribution-plan/

“Defined contribution plans are largely funded by employee contributions, and they offer no guaranteed return of income in retirement.

A defined benefit plan guarantees a specific amount of money employees can expect to receive as income each month in retirement, whether that’s an exact dollar amount or a percent of salary averaged over particular earning years.”

Your family don’t jab you with all the income you make?

Anonymous wrote:You sound jealous

I make 5 times what she makes so I have my own retirement taken care of.

OP, also keep in mind the risk pensions create. More and more cities cannot afford them. So what do they do? Up taxes. This happens in cities in where there’s no hope of ever being able to fully fund pensions. It can break a city financially if not well managed.

You sound jealous

Anonymous wrote:

Anonymous wrote:OP - you need a lot more financial education

Don't try to get it here, in small bits.

I won't. I don't care about this myself but I'd love to tell my relatives to shut up about this. Every time we get together, we have to hear about my SIL and how she's living high on the hog. Oh please.

The really big deal about it is that the pension usually comes with health care for life—and with very minimal OOP.

TBH, your ILs have a point.

Anonymous wrote:OP here. Thanks for the info. Nobody I know has or had I pension so why would I know (or care to know) about them? I asked my SIL and she has the defined contribution plan which is not guaranteed income for life. Doesn't sound like such a great deal. It sounds like any other 401k.

If it is not guaranteed income for life then she has a contribution plan.

'Defined' means income for life.

Anonymous wrote:

Anonymous wrote:What happens when you die? Does you spouse or kids get it?

It goes to spouse if you select survivor benefit option

The default on our plan is that the surviving spouse gets half. If your spouse is willing to waive the benefit, you can get a higher pension. You can also elect a lower pension with a higher survivor spouse benefit.

Anonymous wrote:What happens when you die? Does you spouse or kids get it?

It goes to spouse if you select survivor benefit option

Anonymous wrote:OP - you need a lot more financial education

Don't try to get it here, in small bits.

I won't. I don't care about this myself but I'd love to tell my relatives to shut up about this. Every time we get together, we have to hear about my SIL and how she's living high on the hog. Oh please.

OP here. Thanks for the info. Nobody I know has or had I pension so why would I know (or care to know) about them? I asked my SIL and she has the defined contribution plan which is not guaranteed income for life. Doesn't sound like such a great deal. It sounds like any other 401k.

My dad retired from the state police 20 years ago on a $100K a year salary. At the time he received a pension that was $60K a year and has gotten 2-3% COLA increases most years since then. I'm not sure how much he is getting now. If he dies before my mother, she gets some reduced amount of that (maybe half) for the rest of her life. They also both get Cadillac health and dental insurance for life. Seems like a good deal to me.

Not knocking OP but it's sad our economic landscape has changed to the point OP doesn't know this! When my parents were my age (and younger) pensions were common -- I read that in 1960 half the labor force had one.

OP, so that you know: 401ks started in the late 70s or early 80s and are a way for employers to shift financial risk to the employee. They sold it with tax deferred treatment, and characterized 401ks as potentially bringing higher reward along with the risk -- but that's not necessarily true as old school pensions were generous. My mom retired after 40 years and she gets 80% of her salary for life. I'm a Fed and our plan "only" provides 1% per year worked so 30% of my last salary if I work 30 years.

OP - you need a lot more financial education

Don't try to get it here, in small bits.