Boeing froze pension accruals for salaried employees in 2016, but the Boeing Company Pension Value Plan still holds significant assets for tens of thousands of deferred vested participants and retirees. If you've left Boeing or you're approaching retirement, understanding how your lump sum gets calculated matters. The math can mean six figures in either direction depending on when you elect and where interest rates are.
What the BCPVP covers
The Boeing Company Pension Value Plan is the primary plan for non-union salaried Boeing employees. Accruals stopped December 31, 2016. Benefits earned through that date are preserved and remain Boeing's obligation. Separately, Boeing runs several hourly plans covering IAM-represented workers at facilities like Renton, Everett, and St. Louis; those operate under different rules negotiated through collective bargaining.
If you were hired after January 1, 2016, you have no BCPVP benefit. Boeing shifted new salaried hires to an enhanced 401(k). But if you accrued any benefit before the freeze, you have a preserved defined benefit payable at your plan's normal retirement age, or potentially as a lump sum during election windows.
How Boeing calculates the lump sum
Like all qualified pension plans, Boeing uses the IRS 417(e) formula when calculating lump sum equivalents. This converts your stream of future monthly payments into a single present value using three segment rates published monthly by the IRS.
For 2026, those rates (from November 2025) are:
- Segment 1 (years 1-5): 5.03%
- Segment 2 (years 6-20): 5.35%
- Segment 3 (years 21+): 5.57%
Here's what that means in practice: suppose you're a 60-year-old deferred vested Boeing participant with an accrued benefit of $3,200 per month at age 65. The plan discounts five years of payments at Segment 1, fifteen years at Segment 2, and the remaining tail at Segment 3, using IRS mortality tables to weight each payment by the probability you'll still be alive to receive it. The result is your lump sum equivalent.
At 2026 rates, a $3,200 monthly benefit for a 65-year-old produces a lump sum in the range of $430,000 to $470,000 depending on the exact mortality table Boeing uses. Run your specific benefit in the calculator before Boeing presents any offer. Know the number before the letter arrives.
Boeing's lump sum election history
Boeing has offered voluntary lump sum elections to deferred vested participants twice: in 2012 and 2015. Both windows were time-limited, typically 90 days, and targeted terminated vested employees who hadn't yet started payments.
The 2012 window came during historically low interest rates, which meant lump sum values were near their peak. Participants who elected in 2012 received substantially more than they would today. Segment rates in late 2012 were roughly 1.1%, 3.4%, and 4.6%, dramatically lower than today's 5.03%, 5.35%, and 5.57%. The same pension that paid $470,000 as a lump sum in 2012 calculates to roughly $360,000-$380,000 at 2026 rates.
Boeing has not announced a 2026 lump sum window, but large aerospace employers routinely revisit these programs every few years as interest rates, funding levels, and PBGC premium structures shift. If Boeing does open a window, participants typically receive 60-90 days' notice.
IAM hourly plans: different rules
If you're covered under an IAM collective bargaining agreement, your pension isn't the BCPVP. IAM pension terms are negotiated contract by contract, and lump sum provisions depend on your specific agreement. Some IAM contracts permit an election at retirement; others pay only as an annuity. Contact your union local or Boeing's benefits service center to confirm what your plan allows.
Should you take a Boeing lump sum if offered?
At current segment rates, a healthy 65-year-old Boeing retiree typically needs to live 16-18 years past retirement for the cumulative annuity payments to exceed the lump sum value. That puts the break-even around age 81-83. If family history and current health suggest you'll clear that age, the annuity wins.
If you elect the lump sum, roll it directly to an IRA. A direct rollover avoids the 20% mandatory federal withholding and defers income taxes until you take distributions. A $450,000 Boeing lump sum taken as cash instead of a rollover typically triggers $120,000-$160,000 in taxes in the year of receipt. There's almost no scenario where that makes sense.
Boeing administers the BCPVP through Fidelity NetBenefits. Log in at netbenefits.com to see your accrued benefit and your plan's normal retirement date. If you no longer have Fidelity access, Boeing HR can issue a benefit statement using your employee ID or Social Security number.
See the Boeing pension page for full BCPVP plan status, IAM plan details, and buyout history.