Ford's lump sum history starts with the program it announced in April 2012 for salaried retirees and former salaried employees, and its recent U.S. settlements have mostly been salaried lump sums paid at retirement.
Where the Ford Motor Company pension stands
Ford's U.S. defined benefit plans cover hourly and salaried employees and are closed to new participants. Salaried employees hired on or after January 1, 2004 get a defined contribution plan instead, and so do UAW-represented hourly employees hired on or after October 24, 2011. Ford's 10-K doesn't publish the benefit formulas.
Lump sums and insurer transfers
In April 2012 Ford announced voluntary lump sum offers to eligible U.S. salaried retirees and former salaried employees, starting that August and running through 2013. It settled $1.2 billion of obligations in 2012. Ford's recent 10-Ks say its U.S. pension settlements in 2022 and 2023 were mostly salaried lump sum retirement payments. The only insurer transfer they report in that period was a non-U.S. plan in the fourth quarter of 2022.
What a lump sum is worth in 2026
When a private plan pays a lump sum, it can't be smaller than the IRS 417(e) present value. Plans that use November rates for 2026 apply the November 2025 segment rates: 4.07% for payments in years 1 to 5, 5.15% for years 6 to 20 and 6.01% after that, with the IRS 2026 mortality table from Notice 2025-40. On those inputs, a $3,000 monthly benefit starting at 65 has a minimum lump sum of about $442,500. Your plan's lookback month can differ, so check your Summary Plan Description, and run your own benefit through the lump sum calculator.
PBGC coverage
Benefits still in a private single-employer plan are insured by the PBGC. For a plan that terminates in 2026, PBGC guarantees up to $7,789.77 a month for a straight-life annuity starting at 65, less for earlier starts or survivor forms. Benefits moved to an insurer leave the PBGC system and rely on the insurer and state guaranty associations instead.
Social Security
Ford Motor Company jobs paid into Social Security, so the Windfall Elimination Provision never applied to these pensions, and WEP was repealed anyway for benefits payable after December 2023. If the pension covers your basic expenses, delaying Social Security toward 70 raises the one income source that adjusts for inflation. Model it with the Social Security calculator.
The Ford Motor Company employer page lists the filings behind every date and dollar figure here.