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Subject:  Re: Traditional pension rant (long) Date:  11/12/2003  9:35 PM
Author:  going2win Number:  37791 of 78165

2) To have the pension continue for the spouse after the retiree died you had to take a significant reduction in benefits. If you guessed wrong about which spouse would die first then you lost a lot of the benefits that you could have had. (There were some limited situations where a death soon after the decision was made would cause an adjustment to be made.) Lump sum distributions were also a gamble.

Actually, the hit isn't so bad. I take a 23 % hit on my pension to ensure that my surviving spouse who is 5 years younger than me gets the same pension amount.

Second, if we calculate the amount