Raytheon Technologies (now RTX following the 2020 merger with United Technologies) administers pension obligations from three legacy companies: the original Raytheon, Pratt & Whitney, and Collins Aerospace (formerly UTC Aerospace Systems). If you worked at any of these entities before the pension freezes, you may have accrued benefits from different plan pools. The 2026 lump sum math applies equally, but which plan you're in determines which benefit statement to pull and which Summary Plan Description governs your rights.
Three companies, multiple plan histories
The original Raytheon froze most salaried defined benefit accruals and shifted new hires to enhanced 401(k). Pratt & Whitney and Collins Aerospace each had their own plan structures under the United Technologies umbrella, which were consolidated into RTX's benefit administration after the 2020 combination.
If you worked at Raytheon before the merger and later at Pratt or Collins after a business unit change, you could have accrued periods under separate plans now consolidated under RTX's benefit structure. Your benefit statement should indicate which plan component covers your accrued service. If it's unclear, contact the RTX Benefit Service Center directly. They can pull a complete service record and accrued benefit summary by Social Security number.
Lump sum windows in 2015 and 2019
Raytheon offered lump sum election windows to terminated vested participants and certain retirees in 2015 and again in 2019. The 2015 window came shortly before rates ticked up from post-2008 lows, producing reasonable lump sum values for participants who elected. The 2019 window came during a moderate rate environment.
Post-merger, RTX has continued to manage legacy pension liabilities across all three companies. The pressure to reduce pension exposure on the balance sheet is consistent across the aerospace sector. All major defense contractors are working down frozen pension obligations through lump sum windows, pension risk transfers, or both. RTX's incentive to continue this approach remains high.
The 2026 calculation
RTX pensions that allow lump sum elections use the standard IRS 417(e) formula. November 2025 segment rates apply for 2026 plan years:
- Segment 1 (years 1-5): 5.03%
- Segment 2 (years 6-20): 5.35%
- Segment 3 (years 21+): 5.57%
Raytheon salaried benefits typically ranged from $2,200 to $6,500 per month for long-tenured employees. At $4,500 per month for a 65-year-old, the 2026 formula produces approximately $600,000 to $645,000 as a lump sum. Calculate your specific estimate before any RTX window arrives.
Which legacy entity matters for your calculation
The plan year, the lookback month for segment rates, and the mortality table can vary slightly between legacy Raytheon, Pratt & Whitney, and Collins Aerospace plan components. Most qualified plans use November rates and standard IRS mortality, but check your Summary Plan Description for the specific rules that apply to your accrued benefit. Plan administrators are required by law to provide the SPD. If you can't locate yours, request it from the RTX Benefits Service Center.
New hires and 401(k)-only structure
New RTX salaried hires receive enhanced 401(k) matching instead of pension accruals. If you joined after your specific entity's freeze date, you have no defined benefit. Your retirement savings are entirely in the 401(k). That's the case for a substantial portion of RTX's current salaried workforce, and it means the pension discussion is relevant primarily to employees who joined before the freeze dates.
Planning before the next window
RTX's incentive to offer additional lump sum windows or pension risk transfers is high. Defense contractor accounting, government contract cost structures, and ERISA minimum funding requirements all push toward pension liability reduction. If you're a deferred vested RTX or legacy Raytheon participant who hasn't yet reached retirement age, another window in the next 2-4 years is plausible.
Know your benefit before the window opens. Calculate the lump sum equivalent at current rates now. When the letter arrives, compare the offered amount to what the formula produces. A fair offer will be within 2-3% of the formula value. A gap larger than that warrants questions about the specific segment rates and mortality table the company used for that quarter's calculation.
See the Raytheon RTX pension page for full plan history across all three legacy companies, 2015 and 2019 window details, and current plan status.