Thursday, December 8

RAILWAY WORKER'S PENSION CHOICES


To Do or Not To Do

Known Fact: You will not live forever LOL.

Yes of course, the security of a company pension plan is a nice blanket, especially if you live for many years and the plan keeps its head above water. Although, some
plans, such as is mine, do not cover medical health benefits, therefore there is not much incentive to stay in the plan, other than the proverbial warm blanket that goes cold once you and your spouse die, and the money reverts back to your employer who as had money with your money, even while doling out your monthly pension cheque.

BUYER BEWARE: Upon retirement members are required to either buy into a restricted group health care plan
or search one out for themselves. If you die, 40% to 50% of YOUR money vanishes and your spouse and estate never does see that money, it goes back into the company pension plan pot. If both you and your spouse die, well the money is pro-rated of course to the person's age of 65. This all can become very complicated and you should seek out professional advice, several different opinions is a good idea.

But, what about someone who does not want to belong to the company pension plan and wants their money to continue long after they are gone? Say, a person who does not want the company to reap the benefits of a lifelong savings by employees who have faithfully contributed to the pension plan. Here lies a gold mine of wealth...figure it out.

If a company has a pension plan that is stable and obviously making money, how is it that they can pay out a monthly cheque to pensioners and still make money? The answer is simple: THEY MAKE MONEY ON YOUR MONEY, otherwise they would not be still in the business of doling out monthly cheques, now would they?

One thing to remember is that you have the legal right to know how much money your personal investing into the pension plan is generating...that is the commuted value. If you find the people handling your pension money giving you a difficult time in forwarding your requested numbers, remember that you have the legal right to request the same and simply state this in their infamous VOICE MAIL system.

Here are a few points to ponder when making plans to decide whether to stay with the company pension plan or run with your money:
One other note of mention here, is that over the past 4 1/2 years of requesting these numbers, in the past few months I have personally found the pension plan holder to be very difficult to get any information. They all seem to have switched to a very high tech VOICE MAIL, wherein they usually do not answer. So, it will take a lot of persistence on your part to wrangle the numbers out from them...do not give up, and do not rely on what your co-worker says he/she received...everyone is different in this game, everyone's numbers are different due to the nature of the beast. Remember, your best plan of attack is to plan your retirement early...
"By failing to prepare, you are preparing to fail." (Benjamin Franklin)

Good luck out there, which ever way you may travel...
...and beware of those Carp Diemers!!!

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