Any State Farm Pension owners out there?

[bizlady]

I am attempting to help my sister figure out her estimated pension statement from State Farm. She is divorced, and her Ex works for State Farm and will retire in 2 years before age 65.

My sister and her ex are over 55, so she can draw anytime now.

Her tentative statement has a "without early retirement subsidy" column and an "early retirement " column.

If we are reading this correctly, if she chooses to take the pension now, she would get the amount in the "without subsidy" column, and when her ex retires (and assuming he does so before age 65), she then would ALSO get the amount in the "early retirement subsidy"- correct? (this is question 1)

Question 2: Is the early retirement subsidy just until age 65 or FRA? Or is that permanent?

 

[youbet]

I'm confused. Did both your sis and her ex work for State Farm? Or, did the divorce proceedings grant your sister a slice of her ex's pension?

 

[bizlady]

She gets a share based on the divorce settlement. She has never worked for State Farm.

 

[youbet]

She gets a share based on the divorce settlement. She has never worked for State Farm.

OK, thanks.

Sorry, I'm not a State Farm pension recipent (just a State Farm customer). I just wanted to understand so I could follow along.

 

[brett]

Have you tried speaking to someone in State Farm's pension group?

I suspect that they could provide and immediate, and an accurate response.

 

[mike1958]

State Farm Pension

I have a pension from State Farm. I've never heard of early retirement subsidy. State Farm offers early retirement at 55 but there is a penalty not a subsidy. At 55 there is a 40% penalty which decreases with each year until 62 which is the full retirement age for pension purposes. In other words, at 62 you will get 100% of the pension earned. At 61, you get 90% of earned pension and at 60 you get 85%. Pension amount is calculated based upon years of service and compensation earned over those years. I retired at 56 so I gave up 35% of the amount I earned during my career for the rest of my life. They also offer survivor benefit options which also reduce the amounts since it provides an income flow for the surviving spouse.

 

[marinauser]

What I have seen in some pension plans is if you retire early prior to social security, you can opt to receive a larger payment up to age 62 or 65 for instance and then, when social security kicks in, your pension check is cut to an amount less than you would have received if you had not retired early.

 

[Germonico]

I retired from State Farm @ age 58 (pre-medicare). I think the subsidy being referred to is for a fixed reimbursent rate for medigap type coverage. I do not qualify since I am not medicare age elgible yet, but an associate of mind goes out on the open market to buy medicare part b coverage and gets reimbursed a fixed amount for obtaining coverage on his own.