Heard there is a change coming 1/1/23 on lump sum pension payments. Does anyone know the details?
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Based on how much the calculator interest rate changed as of now: When it went from 2.5% to near zero, the lump increased by 20%. It's gone from 0 to 2.5% now and that implies that in September lumps will reduce by 20%. If you retire and collect the lump before Jan 1, you get the current number. If your collect date is after Jan 1 then you will get the lower amount. Use the pension calculator to figure out your current lump. Come late Sept do it again and see the lower amount. Decide by 10/15 and go before 11/15 to collect 12/1. Payouts are first of the month. So don't wait til December.
Until 2023 when current Ford employees pensions will be converted to 401k
Yes. It changes every year based on IRS Present Value figure. August figure used for calculation. Retire now and use Aug 2021 figure. Retire Jan 1 you will use aug 2022 figure. Higher rate lower the lump sum.