Boeing Pension Calculator: Lump Sum vs Monthly Annuity
Enter the monthly amount from your Boeing pension statement. The calculator values it at the IRS 417(e) minimum rates, checks it against the 2026 PBGC guarantee for your start age, and shows how a lump sum would hold up if you invested it.
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How the 417(e) minimum works
A plan doesn't have to offer a lump sum. If it does, IRC 417(e) sets the least it can pay. Each expected monthly payment is weighted by the chance you're alive to get it, using the IRS mortality table, and discounted at one of three segment rates: one for payments under 5 years away, one for 5 to 20 years, and one beyond 20 years. Higher rates mean smaller lump sums.
Each plan picks which month's rates to use. The calculator defaults to the November 2025 rates, which many calendar-year plans use for 2026, but your Boeing election packet lists the rates your plan actually used. If you're years from your start date, the value today is lower than the value at the start date because you're also discounting the wait and the chance of not reaching it.
Comparing an offer to this number tells you whether the plan is paying at least the legal minimum. It doesn't tell you whether the lump sum is the right choice for you.
How the Pension Value Plan works
Boeing's main salaried plan is the Pension Value Plan for Employees of The Boeing Company. It uses an account-style formula: benefit credits each year plus interest credits. The interest credit is based on the 30-year Treasury yield from November of the prior year, with a 5% floor and a 10% cap. A single lump sum is one of the payment forms.
Because the plan works from an account, the lump sum on your Boeing statement can differ from the 417(e) value of the monthly amount. Treat the plan's quote as the real number. This calculator gives you a cross-check on the annuity side and the investment comparison.
When accruals stopped
Non-union Boeing employees stopped earning new benefit credits after December 31, 2015. Starting January 1, 2016, Boeing made cash contributions to their savings plan instead. Interest credits on the frozen accounts continue.
IAM 751-represented employees kept accruing longer. They moved to a company-funded retirement savings plan in November 2016, and their accrued pension benefits vested immediately.
Who pays your pension
Boeing's 10-K filings don't report any transfer of pension annuities to an insurer, so the plan itself pays Boeing retirees and PBGC insures it. For 2026, PBGC guarantees a straight-life annuity starting at 65 up to $7,789.77 a month. The cap is lower if payments start earlier ($6,153.92 at 62, $3,505.40 at 55) and lower again for a joint and 50% survivor annuity ($7,010.79 at 65). The calculator checks your amount against the row for your start age and form.
Sources
- Boeing 2014 SERP amendment (accruals end Dec 31, 2015)
- Boeing FY2013 10-K, Note 23 (IAM 751 transition November 2016)
- Boeing 2026 proxy statement (PVP formula, interest credits, eligibility, lump sum form)
- Boeing FY2025 10-K
- IAM 751 2024 contract, Article 10 (BCERP freeze, lump sum option)
- IAM 751 final offer highlights, Oct 31, 2024 ($105 multiplier)
- PBGC maximum monthly guarantee tables
- NOLHGA: guaranty association coverage limits
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Frequently asked questions
How is a Boeing pension lump sum calculated?
The Pension Value Plan uses an account-style formula of benefit credits plus interest credits, and a lump sum is one of its payment forms. Your election packet shows the plan's lump sum. This calculator values your monthly amount at the IRS 417(e) minimum rates so you can compare.
When did Boeing freeze the pension?
Non-union employees stopped earning new benefit credits after December 31, 2015. IAM 751-represented employees moved to a company-funded savings plan in November 2016. Interest credits on existing Pension Value Plan accounts continue.
Did Boeing move its pensions to an insurer?
Boeing's 10-K filings don't report a pension annuity transfer to an insurer, so the Boeing plan still pays its retirees and PBGC insures it.
Is my Boeing pension PBGC-insured?
Yes, up to PBGC's limit. For 2026 that's $7,789.77 a month for a single-life annuity starting at 65, less if you start earlier or take a joint and survivor form.
When can I retire from Boeing?
Normal retirement age in the Pension Value Plan is 65, and benefits vest after three years of service. Early retirement is open at 55 with at least 10 years of service, or at 62 with at least one year.