Retirees often make this decision at the last minute without fully understanding the various options available to them, including a Pension Maximizer.

WHAT IS A PENSION MAXIMIZER?

Retirees are frequently not aware that they could be giving up as much as 5 to 30 percent of their pension income in order to provide a survivor benefit. This reduction is basically a form of life insurance premium payment on the retiree's life.

Retirees can often secure the life insurance necessary to provide a survivor benefit more economically on an individual basis than through the pension plan's joint life option.

A PENSION MAXIMIZER allows the retiree to select the maximum, life-only retirement benefit and provide a survivor benefit outside the retirement plan, through individual life insurance.

WHAT ARE THE BENEFITS?

A PENSION MAXIMIZER can benefit the retiree, the spouse, and their families in several ways, including:

• The retiree receives a higher monthly retirement benefit for life.
• Cost of living increases will be based on a higher retirement benefit.
• If the spouse dies before the retiree, the smaller joint life option has not been selected unnecessarily.
• Life insurance proceeds are free from federal income tax. Retirement benefits are fully taxable.
• Life insurance cash values are available for emergency purposes before or during retirement.
• In the event of death of the retiree's spouse, the policy can be surrendered for its value or continued with another beneficiary.
• In the event of the simultaneous death of the retiree and spouse, life insurance proceeds are paid to the contingent beneficiary. Retirement benefits would terminate.