Skip to main content
No. of Recommendations: 0
Defined benefit plans often have two payout choices:
1) A larger benefit over the life of the recipient with a reduced benefit (50%, 67%, etc.) over the life of the surviving spouse.
2) A smaller benefit over the life of the recipient or surviving spouse.

You should check to see whether your husband's plan has one or both of these options.

I take from your followup message (14043) that the current plan is that you'll get 30% of his pension payments while he's alive and 50% after he's deceased.
That would seem to indicate that he'll be recieving his pension via payout choice #1 above and that he'll be giving you 30% of what he receives.

Assuming all this is correct-

While this seems reasonable, I'd think 30% a somewhat low figure for someone on SSDI after 36 years.
I'd check to see whether he'll have a choice of payout options and run the numbers both ways.

Make sure that you get whatever official paperwork you need to enforce the agreement with the pension fund. If he remarries, I'd be concerned that the pension company would be obligated to send the survivor payments to his new wife. Legal minds around here may be able to expound on what would be necessary.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.