If your lump sum pension is valued using the Pension Protection Act (PPA) rate, we’re concerned that big reductions are on the horizon for your lump sum pension amounts. Most lump sum pensions are valued using complex calculations that have an interest rate component, such as the PPA, GATT, or PBGC rates. In general, the lower these rates go, the higher the lump sum values that are produced. Likewise, the higher the rates go, the lower the lump sum values. The recent move in interest rates, as applied to these pension calculations, has been significant. Look at this chart of the PPA rate. Significantly, August and November are very important months for many companies’ pension plans. We think it’s very important that anyone with a lump sum who is considering retiring in the next few years, speak with us about the potential impact of interest rate moves on their lump sum values. We have over a decade of experience in helping retirees evaluate their retirement options and are standing by to help you make sense of these recent interest rate moves. Call Harris Financial Group today at (800) 281-3980 for a free consultation. We work with retirees from across the country, so please don’t hesitate to call regardless of your location!
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