Trumponomics making pensions great again.
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True as checked my lump sum in Aug and then a few weeks back and it went up
Its going to up 6 to 7 %.
Trump isn’t helping your plans at the moment due to shutdown and market volatility.
Right now we can’t see the September or October trend because of the government shutdown. Agencies have been petitioned to fund the staff who publish those numbers. We need the November data, but other companies use different months and people can’t get their pensions without them.
Lump-sum segment rates are based on things like high-quality corporate bond yields for different durations (e.g., Segment 1 reflects 0–5 years, roughly the near-term annuity cost). Recent rate cuts haven’t lowered these rates, they’re up. A volatile stock market can keep those rates elevated even if interest rates drop. Normally they go pretty hand and hand. Nothing is “normal” lately. If you’re counting on 2025 numbers (for a 2026 lump-sum payout) being better, don’t.
The PBGC gets the numbers from the IRS and usually publishes them around the 20th (almost always before the IRS) at https://www.pbgc.gov/employers-practitioners/interest-rates/variable.
Tactically, you can schedule a distribution at Fidelity dated December 30 and take the money on the 31st, then cancel if 2026 looks better. Give notice on Monday the 29th that tomorrow is the last day. If around the 20th the rates look better for next year, just don’t give notice and cancel with Fidelity. That should be your annual plan for now.
Don’t forget every year you stay hoping rates come down there is a market opportunity cost. Not to mention the fact you had to stay another year.
IRS Pension Segment Rates can be found here:
https://www.irs.gov/retirement-plans/minimum-present-value-segment-rates
The IRS pension segment rates for August (published mid-Sept) were pretty much in line with the November 2024 rates. This means you won’t see a significant increase in lump sum is you take it in 2026, unless the fed cuts have an impact. Unfortunately we don’t know if the segment rates are continuing to fall because the September rates which should have been published mid-October never came out due to the government shutdown. So we”ll have to wait for further data. Either way, the rates are not going to go up, so likely a lump sum taken in 2026 will be slightly better than taking it before year end. Unfortunately, we’ll have to wait another six months to see if we are heading towards numbers that make sense to wait to cash out in 2027 (based on November 2026 segment rates)
@b3 Pure BS. Currently has more than $40B in assets, is funded at about 96%, and is insured through the PBGC. Don't be an id--t.
Not mine, being in a cash balance
Mobility one. Unaffected by the interest rates.
It’s not going to explode but it is going to implode. Best to retire now and take it before it’s gone. Similar to social security.
TDS is real.
This is an interesting question with a lot of poor answers, which is normal for this site. Rate cut will eventually affect lump sum pension but every November formula is recalculated but it’s a full year behind. The best time to take lump sum is a full year after rates start to go back up before November. Prediction 2029 or 2030!
The pension is going bust, unless you’re retiring really soon you’ll end up getting zero
I’m sure the orange man will figure out a way to get a slice of your pension increase.
You can check your lump sum any time. It did go up based on the rate cut a few weeks ago.