# Cge pension



## peterboro31 (May 11, 2010)

Anyone here retired on a defined benefit pension?

If so, let's compare things.


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## Daniel A. (Mar 20, 2011)

I'm on DB pension retired early. What would you like to compare?


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## sprocket1200 (Aug 21, 2009)

let's start with the amount of tax paid each year, then go to the value of the nest egg left to your kids....


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## peterboro31 (May 11, 2010)

How many on DB pension get cola adjustment every year or periodically?


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## Daniel A. (Mar 20, 2011)

I receive what would be considered a COLA but it is independent of the company pension a union sup fund.
The pension does have inflation protection but does not kick in at the current level.


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## I'm Howard (Oct 13, 2010)

DB Plans do not leave a nest egg, stop when you or spouse dies.

DB Plans typically are 1.75 YPM, then 2% of annual income times number of years.

Indexing may be available, increasingly not, and you can take the PV of the plan if you opt out before 55.


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## OptsyEagle (Nov 29, 2009)

sprocket1200 said:


> let's start with the amount of tax paid each year, then go to the value of the nest egg left to your kids....


I am sure the actuaries could come up with a plan to leave your kids a very nice nest egg. 

How many thousands per month would you like to have your pension reduced, so your kids could have this?


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## sprocket1200 (Aug 21, 2009)

OptsyEagle said:


> I am sure the actuaries could come up with a plan to leave your kids a very nice nest egg.
> 
> How many thousands per month would you like to have your pension reduced, so your kids could have this?


exactly....


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## HaroldCrump (Jun 10, 2009)

OptsyEagle said:


> I am sure the actuaries could come up with a plan to leave your kids a very nice nest egg.
> 
> How many thousands per month would you like to have your pension reduced, so your kids could have this?


Why do we need a pension for this?
Just do RRSP....
If _everybody_ were to opt for this option, there won't be enough left in the pool to support those that beat the longevity averages.


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## MoneyGal (Apr 24, 2009)

HaroldCrump said:


> Why do we need a pension for this?
> Just do RRSP....
> If _everybody_ were to opt for this option, there won't be enough left in the pool to support those that beat the longevity averages.


There wouldn't be a pool. You'd either sink or swim in your own pond, without sharing the risk with others. 

I think OE's post was in response to Sprocket's post which seemed to be a complaint that his nest egg was smaller than it would have been if he didn't have a pension (and presumably he'd have to die before "beating the average" in order to leave a nest egg), and that his high (pension) income lead to high taxes (more than realized capital gains might, for example).


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## sprocket1200 (Aug 21, 2009)

right on MG. except I don't have a DB pension, so don't have all these worries...


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## Eclectic12 (Oct 20, 2010)

@ I'm Howard: 

Re: DB Plans do not leave a nest egg, stop when you or spouse dies.

True ... though most DB plans I've been in have had a minimum payment period so that if you drop say six months after retiring, the estate is paid say ten years worth of pension money. Once you've collected the ten years worth - then it stops on death.


@ OptsyEagle:

Re: How many thousands per month would you like to have your pension reduced, so your kids could have this?

Hmmm ... again based on DB plans I've been in, the only option offered for taking a reduced amount is to provide a pension to the spouse.

This isn't to say there isn't one out there but I can hear the employer telling the actuary "why would I want to pay you to provide that option - the kids don't work here!". Then too - since the DB pension is subject to gov't restrictions, I doubt it is offered anywhere.


Cheers


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