Ford Pension Calculator: Lump Sum vs Monthly Annuity
Enter the monthly amount from your Ford 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 Ford 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.
Who is in Ford's pension plans
Ford's U.S. defined benefit plans cover hourly and salaried employees, and Ford says virtually all of its plans are closed to new participants. Salaried employees hired on or after January 1, 2004 got a defined contribution plan instead. UAW-represented hourly employees hired on or after October 24, 2011 did too.
Ford's 10-K doesn't publish the benefit formulas, so the calculator works from the monthly amount on your statement.
Ford's lump sum history
In April 2012 Ford announced voluntary lump sum offers to eligible U.S. salaried retirees and former salaried employees. Offers went out from August 2012 through 2013, and Ford settled $1.2 billion of obligations in 2012.
Ford's recent 10-Ks describe its 2022 and 2023 U.S. pension settlements as mostly salaried lump sum retirement payments. The only insurer transfer they report in that period was for a non-U.S. plan in the fourth quarter of 2022. We found no record of a U.S. annuity transfer, so the Ford plan still pays U.S. retirees.
PBGC protection
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.
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Frequently asked questions
Did Ford move its U.S. pensions to an insurer?
Ford's 10-Ks don't report one. Its 2022 and 2023 U.S. settlements were mostly salaried lump sum retirement payments, and the only insurer transfer in that period was for a non-U.S. plan.
When did Ford close its salaried pension?
Salaried employees hired on or after January 1, 2004 got a defined contribution plan instead of the pension. UAW-represented hourly employees hired on or after October 24, 2011 also get a defined contribution plan.
Has Ford offered pension lump sums before?
Yes. Ford announced voluntary lump sum offers to eligible U.S. salaried retirees and former salaried employees in April 2012, made from August 2012 through 2013. It settled $1.2 billion of obligations in 2012.
Is my Ford 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 for earlier starts or a joint and survivor form.