Pension and Retirement Math

The PBGC maximum guarantee for single-employer plans terminating in 2026 is $7,789.77 a month for a straight-life annuity starting at 65. Here is what that covers, what it does not, and how it changes for early retirees and survivors.

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 moved about 41,000 management retirees to Prudential in 2012 and 56,000 more retirees to Prudential and RGA in 2024. Here is what that means and what your benefit is worth.

Lockheed Martin froze its salaried pension in two steps (pay after 2015, service after 2019) and moved two big groups of retirees to Athene in 2021 and 2022. Here is how to estimate your frozen lump sum value and decide whether to take it.

Most AT&T pension participants can choose a lump sum or an annuity. Here is how the 2026 lump sum is calculated, what the 2023 Athene transfer changed, and how to decide.

In 2012 GM offered lump sums to about 42,000 salaried retirees and bought a $25.1 billion group annuity from Prudential for most others. Here is what that means for GM participants in 2026.

Ford's U.S. pensions are closed to new participants, and its 2012-2013 lump sum program was for salaried retirees. Here is how Ford lump sums work and what your benefit is worth in 2026.

CalPERS has no lump sum option at retirement. Here is what it does pay, how the formula and COLA work, and what the pension is worth as an asset.

Federal workforce reductions brought VERA and VSIP offers to many agencies. Here is how to calculate whether taking the buyout makes financial sense for your situation.

RTX's legacy UTC and Raytheon pensions froze on different dates, and in December 2025 about 60,000 retirees moved to Prudential. Here is which rules apply to you and what your benefit is worth.

Northrop Grumman still runs U.S. pension plans that accrue for some employees, partly on a cash balance formula. Here is what its filings say and what a lump sum is worth at 2026 rates.

Texas TRS uses a 2.3% multiplier and offers a partial lump sum option. Here is how to calculate your benefit, how the Rule of 80 works for each tier, and who qualifies for the PLSO.

CalSTRS pays a percentage of final compensation per year of service, topping out at 2.4%. Here is how the formula works, what the 2% at 62 reform means, and how to estimate your benefit.

Ford announced lump sum offers to salaried retirees in April 2012 and settled $1.2 billion that year; its recent U.S. settlements were mostly salaried lump sums. Here is what your benefit is worth in 2026.

Verizon's 2012 Prudential deal was a group annuity purchase, not a lump sum offer. Here is what happened in 2012 and 2024 and what remaining benefits are worth.

IBM stopped U.S. pension accruals at the end of 2007, moved about 132,000 participants to insurers in 2022 and 2024, and added a new cash balance account in 2024. Here is what your benefit is worth.

Lockheed Martin froze its salaried pension in two steps: pay after 2015 stopped counting, then service after 2019. Here is what a frozen benefit is worth as a lump sum at 2026 segment rates.

GM paid $3.6 billion in lump sums to 12,500 salaried retirees in 2012 and moved most others to Prudential. Here is what a remaining GM salaried benefit is worth at 2026 rates.

The GE Pension Plan closed to new participants in 2012 and froze for about 20,000 salaried employees on January 1, 2021. Here is what that means and what a lump sum is worth at 2026 rates.

Boeing stopped non-union pension accruals after December 31, 2015, but Pension Value Plan accounts still earn interest credits, and a lump sum is a regular payment option. Here is what your benefit is worth in 2026.

AT&T's management pension programs are closed to new entrants, most participants can choose a lump sum or an annuity, and 96,000 participants moved to Athene in 2023. Here is how the numbers work.

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 don't tax pension income at all, and several more exempt most of it. Here is how every group of states treats pensions in 2026.

PBGC approved about $35.8 billion of Special Financial Assistance for Central States in December 2022, keeping a plan that covers 357,056 participants from running dry in 2025. Here is what that means for members.

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 closed its main U.S. pension to new participants in 2009 and will freeze it for non-union employees on December 31, 2028. Here is where the plan stands and what a lump sum is worth at 2026 rates.

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 all U.S. pension benefits effective December 31, 2019. Here is what that means and what a frozen benefit is worth as a lump sum at 2026 rates.

If your income exceeds $109,000, you pay more for Medicare. Here's exactly how the 2026 IRMAA brackets work, what triggers the surcharges, and how to manage them.

Delta's own pension plans are closed and frozen, while the Delta Pilots Retirement Plan was terminated in 2006 and is paid by the PBGC. Here is what each group gets.

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.

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

UPS runs two main pension plans, stopped non-union accruals on January 1, 2023, and left Central States in 2007. Here is which plan covers you and how to value your benefit.

ExxonMobil's U.S. pension plans are still accruing benefits, and in 2025 the plan moved $767 million of obligations to an insurer. Here is what that means and what a lump sum is worth at 2026 rates.

Honeywell still reports U.S. pension service cost, and its U.S. plans pay lump sums. Here is what its filings say and what a lump sum is worth at 2026 rates.

Deere's U.S. salaried pension is closed to new participants, but its plans still accrue for many employees. Here is where they stand and what a lump sum is worth at 2026 rates.

Pfizer froze accruals under its largest U.S. pension, the Pfizer Consolidated Pension Plan, on January 1, 2018. Here is what a frozen benefit is worth as a lump sum at 2026 rates.

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.

The National Electrical Benefit Fund is the multiemployer pension the IBEW and NECA set up in 1946. Here is how it's funded, when you can retire and what reduces your benefit.

American Airlines froze substantially all of its defined benefit pension plans on November 1, 2012 and kept them. They were never terminated or taken over by the PBGC. Here is what that means for your benefit in 2026.

SECURE 2.0 made dozens of changes to retirement law. Most are narrow. A handful change the numbers: RMD timing, a bigger catch-up for ages 60-63, and Roth-only catch-ups for high earners starting 2026.

Southern Company's qualified pension plan covers substantially all employees and still accrues benefits. Here is what its filings say and what a lump sum is 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.

A lump sum is a regular payment option in the Boeing Pension Value Plan, not a one-time window. Here is how to decide between it and the annuity at 2026 rates.

The Social Security Fairness Act (Public Law 118-273), signed January 5, 2025, ended WEP and GPO for benefits payable after December 2023. SSA says the two rules had reduced benefits for over 3.2 million people. Here is what changed.

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 $24,480 reduce it. Here is the full picture.

From the 2020 lows to the 2023 highs, segment rate swings have moved pension lump sums by more than $100,000 for the same benefit. Here is the history.

GM, Verizon, IBM, AT&T and many others have transferred pension obligations to insurance companies. Your monthly benefit stays the same. Your PBGC protection does not.

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

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.

GM salaried accruals stopped September 30, 2012, and salaried employees remaining in the plan can choose a lump sum or monthly pension at retirement. Here is the math at 2026 rates.

OPERS lets Traditional Pension Plan retirees take part of their benefit as a lump sum, the Partial Lump Sum Option Payment. Here is how it works, how the formula and COLA work, and when the PLOP 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 when you joined. Tier 6 members who joined on or after April 1, 2012 work under much tighter terms than older members. Here is the 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 pays a benefit factor times years of service times final compensation. Classic vs. PEPRA formulas, final compensation, vesting, COLA and payment options, checked against CalPERS's own charts.