Joint and Survivor Annuity
A joint and survivor (J&S) annuity protects your spouse from losing income if you die first. Under ERISA, married participants in private pension plans default to a 50% J&S annuity unless the spouse signs a written waiver. Common options are 50% (spouse gets half your benefit), 75%, or 100% (spouse gets full benefit). The tradeoff: a higher survivor percentage means a larger reduction to your benefit while you're alive, typically ranging from 10% for 50% J&S to 18% for 100% J&S.
Example
Your unreduced pension is $4,000/month. With a 100% J&S election (18% reduction), you receive $3,280/month. After your death, your spouse continues receiving $3,280/month for their lifetime.
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Contractor vs Employee Compensation
Contractors typically need to charge 40-70% more per hour than the equivalent employee hourly rate to achieve comparable take-home pay, because they cover self-employment tax (15.3%), health insurance, retirement, PTO, and business expenses themselves.
Employee Salary Equivalent
An employee salary that matches your contractor income is typically 25-40% lower than your contractor gross, because the employer covers half of FICA taxes, provides benefits, and gives paid time off that you currently fund yourself.
Pension Benefit Estimation
A defined benefit pension pays a guaranteed monthly income for life, calculated as: Years of Service × Final Average Salary × Benefit Multiplier. A typical 2% multiplier over 30 years replaces 60% of your final salary. Only 14% of private sector workers still have access to a pension (2025), but 86% of public sector workers do.