Pension and Retirement Math

The DROP plan lets police officers and firefighters lock in their pension at retirement age while continuing to work. Here is how DROP accumulations are calculated and whether entering DROP makes financial sense.

Verizon transferred $7.5 billion in pension obligations to Prudential in 2012. Here is what current and former Verizon employees need to know about their lump sum options and how to calculate their benefit.

Lockheed Martin froze its pension for salaried employees in 2020 and transferred obligations to Athene in 2022. Here is how to calculate your frozen lump sum value and decide whether to take it.

AT&T management and CWA employees facing a pension decision in 2026. Here is how the lump sum is calculated, what interest rates mean for your payout, and how to run the numbers.

General Motors executed the largest pension transfer in U.S. history in 2012. Here is what GM retirees and deferred vested participants need to know about their lump sum options in 2026.

Ford offered lump sum windows to salaried retirees in 2012 and 2015. Here is how the Ford pension lump sum calculation works, what 2026 interest rates mean for your benefit, and whether taking the lump sum makes sense.

CalPERS does not offer a standard lump sum at retirement, but there are partial lump sum options, contribution refunds, and present value calculations that every California state employee should understand.

DOGE workforce reductions have triggered VERA and VSIP offers across federal agencies in 2026. Here is how to calculate whether taking the buyout makes financial sense for your specific situation.

RTX administers pension benefits from three legacy companies after the 2020 merger. Here is how to identify which plan covers you, what your lump sum is worth in 2026, and when Raytheon has offered buyout windows.

Northrop Grumman froze its salaried pension in 2014 and completed a $1 billion pension risk transfer in 2021. Here is what former salaried employees' benefits are worth at current segment rates.

Texas TRS uses a 2.3% multiplier and a partial lump sum option. Here is how to calculate your benefit, who qualifies for PLSO, and what the 80 and 90 point rules mean.

CalSTRS covers 950,000 California teachers with a 2.0-2.4% multiplier depending on tier. Here is how the formula works, what the 2% at 62 reform means, and how to estimate your benefit.

Ford closed salaried pension accruals in 2022. UAW hourly employees retain defined benefit pensions. Here is how Ford calculates lump sums, when the company has offered buyout windows, and what your benefit is worth in 2026.

Verizon's 2012 lump sum offer was $7.5 billion. The management plan was then largely transferred to Prudential. Here is what remaining management benefits are worth and what CWA employees should know.

IBM froze its pension in 2008 and made headlines in 2023 by partially reversing that decision. If you have pre-2008 IBM benefits, here is what your lump sum is worth at current segment rates.

Lockheed Martin froze salaried pension accruals January 1, 2016. For long-tenured aerospace engineers and program managers, the SERP benefit can be substantial. Here is what it is worth at 2026 segment rates.

GM's 2012 lump sum offer was the largest in corporate history. If you have a deferred GM salaried benefit, here's what it's worth at 2026 segment rates and what another window might look like.

GE froze its pension in 2019 and offered a major buyout window in 2021. Now split into three companies, here's how to find your benefit, what it's worth at 2026 rates, and how the breakup affects you.

Boeing froze pension accruals in 2016. If you held BCPVP benefits through the freeze, here is how the IRS 417(e) math works and what your lump sum is worth at current segment rates.

AT&T operates one of the largest private pension plans in the country, covering legacy AT&T, SBC, and BellSouth employees. Here's how lump sums are calculated and what deferred vested participants should know in 2026.

Widows and widowers have more claiming flexibility than almost any other Social Security recipient. Most people leave money on the table by not knowing the rules.

Nine states have no income tax. Four more fully exempt pension income. The rest vary widely. Here is the complete breakdown by state so you can plan where to retire.

The Central States Pension Fund was rescued by the American Rescue Plan in 2021. Benefit cuts have been reversed. Here is what Teamsters members need to know about their pension in 2026.

A pension earned during a marriage is marital property in most states. A QDRO is the legal instrument that splits it. Here's how it works and what to watch for.

The Legacy system pays 2.5% per year. BRS pays 2.0% but adds TSP matching. For a 20-year service member, the difference is real money. Here is the math.

3M froze its pension for salaried employees in 2021. If you have accrued benefits, here is what your lump sum is worth at 2026 segment rates and when the company has offered buyout windows.

Two federal retirement systems, two very different formulas. Here's a side-by-side comparison of FERS and CSRS pension math, COLA differences, and Social Security integration.

Caterpillar froze salaried pension accruals in 2020. Here is how the Caterpillar Retirement Income Plan calculates lump sums at 2026 IRS segment rates and what deferred vested participants should know.

If your income exceeds $106,000, you pay more for Medicare. Here's exactly how the 2025 IRMAA brackets work, what triggers the surcharges, and how to manage them.

Delta pilots retained their pension through the 2005-2007 bankruptcy. Non-pilot plans were terminated and taken by the PBGC. Here is how each group's retirement looks in 2026.

Three IRS-approved methods let you take penalty-free IRA distributions before age 59.5. Here's how SEPP works, which method pays the most, and what happens if you break the schedule.

Tens of thousands of federal employees are weighing early retirement packages. Here's what VERA does to your FERS pension and how to calculate the real cost.

UPS drivers and package handlers covered by the IBT-UPS master contract have some of the strongest pension benefits in private industry. Here is how those benefits are calculated and why lump sum windows are rare.

ExxonMobil still runs an active defined benefit pension for US employees when almost every other major corporation has frozen or eliminated theirs. Here is how the plan works and what a lump sum is worth at 2026 rates.

Honeywell carries pension obligations from AlliedSignal, Bendix, and multiple legacy mergers. The plan is frozen for most salaried participants. Here is how to calculate what your accrued benefit is worth at 2026 rates.

John Deere is one of a shrinking number of large industrial employers still running active defined benefit pensions for both UAW-represented and salaried employees. Here is how the plans work and what they are worth.

Pfizer froze most US salaried DB pension accruals and now carries benefit obligations for both legacy Pfizer and legacy Wyeth employees with separate accrual histories. Here is what those benefits are worth in 2026.

Your employer sends a letter. There's a dollar amount. Here's what that number means, what it doesn't tell you, and five things to check before you respond.

IBEW electricians typically receive retirement income from two sources: the national pension fund and a local supplement. Here is how both are calculated, why lump sums are not available, and what total retirement income looks like for a 30-year electrician.

American Airlines terminated its pension plans during its 2011-2013 bankruptcy. The PBGC took over. Pilots were cut most severely. Here is what PBGC pays in 2026, what the guarantee limits mean, and why there is no lump sum option.

Southern Company subsidiaries including Georgia Power and Alabama Power maintain an active defined benefit pension plan when most utilities have frozen theirs. Here is how the plan works and what benefits are worth at 2026 rates.

The November 2025 segment rates are out. Here's what they mean for anyone holding a defined benefit pension and weighing a buyout offer.

High earners can't contribute to a Roth IRA directly. The backdoor strategy gets around the income limit -- unless you have pre-tax IRA money. Here's when it works and when it doesn't.

A pension without a cost-of-living adjustment loses half its purchasing power in 23 years at 3% inflation. Here's what the math actually looks like, year by year.

Boeing froze its salaried pension in 2016. If you're a Boeing retiree or deferred vested employee weighing a lump sum offer, here's what the IRS formula says and what to check first.

The Social Security Fairness Act was signed January 5, 2025, eliminating WEP and GPO for 3.2 million public sector workers. Here is what changed and what you can expect to receive.

Taking a pension lump sum as cash triggers mandatory 20% withholding and a large tax bill. A direct rollover eliminates both. Here is exactly how it works.

The FERS Supplement bridges the gap from early federal retirement to age 62. Not every retiree qualifies, it stops abruptly at 62, and earnings above $22,000 reduce it. Here is the full picture.

From historic lows in 2020 to elevated rates in 2026, segment rate swings have shifted pension lump sum values by hundreds of thousands of dollars. Here is the full history.

GM, Verizon, GE, and dozens of others have transferred pension obligations to insurance companies. Your monthly benefit stays the same. But your PBGC protection does not.

CalSTRS, Texas TRS, Illinois TRS, NYSTRS: each state system works differently. Most do not allow lump sums, most do not pay into Social Security, and the WEP repeal changes things for many teachers.

A pension promises a monthly income for life and your employer bears the risk. A 401(k) defines what goes in, not what comes out, and you bear the risk. Here is how to compare them honestly.

General Motors has one of the largest frozen corporate pensions in America. Current segment rates have shrunk lump sum values significantly from the 2021 highs. Here is the math.

OPERS is one of the few large state pension systems offering a genuine lump sum option at retirement. Here is how the PLSO works, how much it reduces your monthly benefit, and when it makes sense.

The survivor benefit election at pension retirement is often permanent. It determines whether your spouse keeps receiving income after you die. Here is exactly what each option costs and when it makes sense.

Most pension plans permanently reduce your benefit for every year you retire early. Here is how the actuarial reduction works, what it costs over a lifetime, and how to calculate your specific break-even.

New York's public pension has six tiers based on hire date. Tier 6 members hired after 2012 work under dramatically different terms than older members. Here is the full breakdown.

Your annual pension statement tells you exactly what you have earned, what you will receive, and what early retirement costs. Most people file it away without reading it. Here is what every line means.

The military switched to the Blended Retirement System in 2018. If you entered after January 1, 2018, your retirement works differently. Here is how both systems work and what the lump sum option actually costs you.

CalPERS is the largest public pension in the US with 2 million members. Classic vs. PEPRA, final compensation, and the 5-year vesting rule: here is everything you need to know.