The plan was amended to provide lump sums , not unusual , and from above it looks like there might have been a conversion to a cash balance plan from a traditional DB effective 1/1/2014 - that would explain the reference to both types of plans in our conversation so far - and so the benefit could have two pieces , a pre 2014 piece and a small CB piece running for two years until the 12/31/2015 freeze - but it seems odd that they would freeze the CB after two years - but then again I don't know if suddenly there's pressure on Boeing to contain costs ??supernova72 wrote:OP here. Don't know who our Megacorp uses for consulting. I'm sensing some on this thread think I'm making up the numbers which I"m not. I'm going to post one output from the tool so you can see what we see. The 2nd section is a new addition explaining some of the elements behind the "new" lump sum option for existing employees. This is the first time it's been offered ever to existing workforce. Below assumes a retirement date of 4/1/2016. At 65 it would be $4005 a month.
If you would like to receive both your pre 2014 benefit and post 2013 benefit as one form of
payment, you should make one election from Section A only.
Form of Payment Benefit
Total Lump Sum Payment (one-time) $ 472,207.21 (on 4/1/2016 or 55 yrs, 5 months)
If my supposition is correct , then I would determine the lump sum as A+B where A is the traditional DB accrued benefit as of 12/31/13 converted to a lump sum and B is simply the account balance on 12/31/15 of the CB plan adjusted maybe for some interest until 4/1/2016 ; but again I would need A & B - if it were me I'd call HR and ask them for those amounts .
But if my assumption is not correct then I'd have to say that I don't have enough information to determine the lump sum ; and again I'm just curious about the magnitude of the lump sum ; the arguments regarding the annuity vs lump sum decision are voluminous .
And again if it were me and I was at a company for 30+ years I'd want to know in detail everything about my pension plan ; having a calculation tool is fine but to my mind I'd want to know the history - it's important !!
It also looks like there's a so-called SS leveling option among the annuity choices since there's a benefit decrease in 7 years which is around age 62 for the OP .