Serving the AFL-CIO since 1993

Pension Maximization


PENSION MAX – MALE AGE 62 – NON SMOKER – EXAMPLE

Step 1
In this example the 62 year old PARTICIPANT would choose a PENSION MAXIMIZATION strategy by electing to receive the maximum “single life annuity” payout of $4,191 instead of the “100% joint and survivor annuity” paying $3,299. This provides the PARTICIPANT with an additional $892 per month to fund the PENSION MAX program.

Step 2
Union Legal will have chosen the Life Insurance Company which has the best rates and death benefit for a 62 year old non smoker where the benefit ($686,279) is guaranteed to age 95 for a guaranteed premium ($892/mo).

Step 3
The $892 premium is paid monthly by the PARTICIPANT to fund the life insurance contract for a death benefit of $686,279 payable to the SURVIVING SPOUSE. This is a TAX FREE BENEFIT TO THE SURVIVING SPOUSE.

Step 4A
At the death of the PARTICIPANT, the SURVIVING SPOUSE recieves the death benefit of $686,279 and reinvests the lump sum in a Guarantee Return Annuity for monthly income WITHOUT RISK OF PRINCIPLE.

Step 4B
If the SPOUSE predeceases the PARTICIPANT, the death benefit of $686,279 is paid TAX FREE to the children or designated heirs at the death of the PARTICIPANT.

**WARNING**
If the SPOUSE predeceases the PARTICIPANT, the PARTICIPANT will not be able to change his penion choice from the “100% Joint and Survivor Annuity” to the “Single Life Annuity” option, COSTING THE PARTICIPANT $892 per month or $214,080 over 20 years.

COMPARISON

100% JOINT AND SURVIVOR
At PARTICIPANTS Death
Surviving Spouse $3,299 monthly
At SURVIVING SPOUSES Death
$0 – To Heirs
PENSION MAX SOLUTION
At PARTICIAPANTS Death w/ Pension MAX
Surviving Spouse $3,299 monthly (@5.7%)
At SURVIVING SPOUSES Death
$686,279 TAX FREE to Heirs

For more information on Pension Maximization please view documents below.
Pension Max Strategy PDF Document – American National Insurance Company
Transamerica Pension Max