I heard a poster mention that lump sum pensions should go up this year with lower interest rates. Is that true and when will we know? If I survive just one more year I'll have my 30 and I am gone. Before Hackett I would have worked another 10 + cause I love my job and was proud to work for Ford. I don't feel that way now. Our company doesn't give a damn about you or your dedication now especially if you are older than 30.
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Check that......... I missed a digit
+12%
Me likes this low interest rate
10% ? good for you. Mine is up 2%
The Pension Estimator has been updated with the new interest rates!!!!!!!!! My lump sum went up 10.88% WooHoo! Do I leave next summer or the end of next year!?!!? Decisions Decisions! :) I am soooooooooooooooooo happy!!!
If I am reading the tables right we are about 1% lower on interest rates YOY so lump sums should be about 10% better than last year. That is $80k to $110k improvement in lump sum for many.
Thanks for posting some decent info on lump sum pensions and interest rates. I think some folks on here were expecting a 50% increase in their pensions based on bad info.
The August rates of the previous year is what is used to calculate the next years lump sum amounts.
The online retirement estimator has not been up updated to the new rates. :( The change in the lump sum amount won't be as big as some have suggested. Here is a link to a CPA's PDF that explains lump sums in detail. (Ford is mentioned in the paper.) This paper explains that a half of a percent interest rate will change the lump sum by 5%. (Sheet 2 of the PDF)
https://ljpr.com/wp-content/uploads/2015/07/Interest-Rates-and-Lump-Sums-APPROVED.pdf
Leave as soon as you can. That company is not going to take care of their employees, they've made that crystal-clear.
I was previously told August rates are used for the entire following calendar year (ex - August 2019 w/b used for 2020 calendar year).
IRS adjusts rates every month and they have been low so that is great news for those getting out next year. But as the previous poster mentioned Ford only uses the September numbers every year to set lump sums the following year. That number will be available in October.
Roughly 0.1% reduction means another $100,000 in your lump sum depending on your age and salary
You can always take the pension when rates go up causing lump sums to drop.
It's crazy the IRS is estimating what retirees will earn off their lump sum. Better them that Ford!
Very true and can be super important. Brad in our section was mad when rates went up, he said basically he was working his last year for free. He regretted not taking PRP the previous year.
2020 lump sum is based on Sept 2019 rates set in October 2019 by IRS