Southern Company still offers a traditional pension to substantially all of its employees, including those at Georgia Power, Alabama Power and Mississippi Power.
Where the Southern Company pension stands
The Southern Company system, which includes Georgia Power, Alabama Power and Mississippi Power, has a qualified defined benefit pension plan covering substantially all employees except PowerSecure employees. Benefit formulas differ based on when and by which subsidiary an employee was hired. Southern made no contributions to the qualified plan in 2025 and expects no required contributions in 2026.
Lump sums and insurer transfers
Southern Company's FY2025 10-K doesn't report a lump sum window or insurer transfer, and we found no primary source for one.
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
Southern 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jobs paid into Social Security, so the Windfall Elimination Provision never applied to these pensions, and WEP was repealed anyway for benefits payable after December 2023.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 Southern Company employer page lists the filings behind every date and dollar figure here.