Pension & Retiree Info
IUPAT INDUSTRY PENSION FUND TIPS
We want you to get the most out of your benefits! That’s why each month, we will highlight advice that will help you to maximize the benefits of your pension fund. Check back here often for the latest tips!
Tip of the Month
Social Security Option—A Popular Option Means Additional Retirement Security
Think retiring early is impossible? Think again! With the Social Security Option, better known as “Level Income,” early retirement can be a real-ity for you.
If you want to retire early, with the IUPAT Industry Pension Plan you can receive your full pension under the Level Income option, plus an additional amount to help carry you over until Social Security begins. The amount you get from the plan takes into account the money you will expect to receive from Social Security.
Sound complicated? It’s actually quite simple. When you first retire, you’ll get a higher monthly payment from the Plan. You will continue to receive this higher amount from the date you retire until you are eligible for Social Security payments, whether at age 62 or later. At that point, your payments from the plan will be reduced. Thus, the amount you’ll receive from Social Security plus the reduced payments from the Plan will be equal to the pension you were receiving before your Social Security payments started. With this option, your total retirement income from the Plan and Social Security is intended to remain level and predictable from whatever date you retire.
Here’s how it works. When you turn 55 years old, and decide you’d like to retire early, the Level Income option will make your early retirement a smooth transition. Suppose you receive an esti-mate of your benefit from Social Security of $1,000 per month at age 62. From the Plan, you are eligible to receive a pension of $2,250 per month at age 55. If you choose the Level Income option, the Plan will pay you a benefit of $2,850 per month until you are age 62. At age 62, your monthly benefit from the Plan will drop to $1,850 per month, at which time you will also begin to receive your Social Security benefit of $1,000 per month. Combined, your total monthly benefit will remain at $2,850 for your lifetime.
“This option gives you the chance to retire when you are young and healthy enough to enjoy it,” said Gary Meyers, IUPAT Pension Fund Administrator. “Having the IUPAT Pension Fund allows you to take full advantage of your Social Security benefits, and demon-strates why having a union-sponsored pension plan is such an advantage.”
Remember, once elected and benefits start, the Level Income option may not be changed or revoked.
If you’d like more information on this option, or to find out what your pension would be, call the Pension Fund Office, and be sure to apply to the Trustees on the prescribed form prior to your pension effective date.
To calculate your Social Security benefits, visit the Social Security Administration’s Web site at
www.ssa.gov/planners/calculators.htm. You can use your earnings to calculate your benefits. For example, if you are 55 years old and make $40,000 per year, your monthly benefit amount at age 62 would be $884. If you are 55 years old and make $60,000 per year, your monthly benefit amount at age 62 would be $1,166.
Past Tips of the Month
Collecting Pension When You’re Out of Town
If you’re away from home, your pension can still be deposited in your bank account promptly on the first of the month. Just sign up for direct deposit through the IUPAT Pension Fund. Your pension will be transferred automatically from the pension fund directly to your checking or savings account. The money will post to your account on the first of the month, every month. To sign up or get more information, contact us.