pension amounts

I am a 19 year employee I have approximately 116,000.00 in my FedEx pension according to your recent handout at UPS I would be entitled to 56.50 x 19=1073.50/ month. How would this compare if I was to retire now? What would the monthly amount for my Fed Ex pension be?

Teamsters Response:

Great question!

hmmm..

Lets say you wanted to get a maximum secure monthly pension out of that money..... so I guess you would have to turn it into some type of annuity.

If the annuity paid 6% that would produce approx. $580 per month of income. The other factor is that a UPS worker can retire with full pension at age 60.

So 1073.50 minus 580 = 493.50

A UPS worker under your 19 year model would end up approx $493/month ahead of a FedEx worker and would have a 5 year head start at a full unreduced pension.

 

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