It appears the new 2024 annual calculation factor rate is loaded in the tool. For me it only shows a difference of ~$49,000 (loss/reduction) between taking the lump sum later against the current 2023 rate. Anybody else draw the same conclusion? SGR8 salary
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Rates just got published today.
When you run the estimate there is a page that shows the exact rates by segment and calls out where they are from. If to do the Nov 30 and Dec 31 comparison you will see the difference. And you can confirm those rates from the IRS site
Odd that they are able to update the tool before rates are published. Wondering if they have inside access or if they decided to move the formula based on the July rate...
In case you want to check your own numbers- Run the pension estimator using November 30th 2023 with an "earliest commencement date" for date you begin Receiving Benefits"- which would on paper be December 1st, 2023. Then re-run it with December 31st and a January 2024 date for date you will Commence. The difference between the two is the decline. So, some people will see 6-9% declines. It's not as bad as last year, but a reduction.
It must be nice to watch your pension dwindle, rather than increase. I guess you can take the monthly payout.
I guess somehow HR has their hands on the August rates. They aren't published on IRS.gov yet.
@jgs+1oF5jjXg "I think the tool needs the august rates."
I believe it has just been updated because I ran the numbers for retirement January 1, 2024 (this morning) and the lump sum was different/lower than when I ran the tool last week.
I think the tool needs the august rates.
Year to year was a 5% decrease in the tool estimator; but not like the big 23% reduction from 2022 to 2023.
Funny the irs site doesn’t even list the August rates yet.
Mine was a 9% drop.
To the OP, in terms of percentage of your lump sum, what percent is the decrease?
Last year, it was 23%, this year was estimated to be 10% , a month ago a couple of posters were approximating, ‘cyphering’ on back of a napkin as Jethro used to say in Beverly Hillbil--es.
The new rates will take effect in October.