PensionMath

RTX (Raytheon) Pension Calculator: Lump Sum vs Monthly Annuity

Enter the monthly amount from your RTX pension statement. The calculator values it at the IRS 417(e) minimum rates, checks the PBGC guarantee if the RTX plan still pays you, and shows how a lump sum would hold up if you invested it.

Your RTX pension details

Legacy UTC non-union accruals stopped December 31, 2019. Their service through 2014 generally counts under a pay-and-service formula, and 2015 through 2019 under a cash balance formula. Legacy Raytheon non-union participants stopped earning under the historical pay-and-service formula on December 31, 2022 and earn cash balance credits after that. RTX merged the remaining Raytheon plans into the RTX Consolidated Pension Plan at December 31, 2023 without changing anyone's formula.

Because the formula depends on your legacy company and dates, this calculator starts from the monthly amount on your statement and values it at the IRS 417(e) minimum rates. For a cash balance piece, the plan's lump sum is tied to the account balance.

Everyone not moved in the 2025 Prudential transfer.

From your RTX pension statement or benefit estimate. Use the single-life amount at the start age below, before any survivor reduction.

Without an offer, we use the IRS 417(e) minimum lump sum at the rates below as a stand-in.

Age monthly payments begin.

IRS 417(e) segment rates

Defaults are the November 2025 rates, which many calendar-year plans use for 2026. Each plan picks its own lookback month, so copy the rates from your election packet if it lists them.

Used only for the "at your return" value. The 417(e) minimum uses the IRS mortality table.

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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 RTX 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.

Formulas by legacy company

Legacy UTC non-union employees stopped accruing on December 31, 2019. Their service through 2014 generally counts under a pay-and-service formula, and service from 2015 through 2019 under a cash balance formula UTC adopted in 2003. Union UTC benefits are generally stated amounts per year of service.

Legacy Raytheon non-union participants stopped earning under the historical pay-and-service formula on December 31, 2022 and earn cash balance credits after that. At December 31, 2023 RTX merged the remaining Raytheon plans into the RTX Consolidated Pension Plan without changing anyone's formula.

Because the formula depends on your legacy company and dates, the calculator works from the monthly amount on your statement.

The 2025 Prudential transfer

In December 2025 RTX completed a buy-out conversion of a group annuity contract with Prudential. It moved about $2.3 billion of obligations for about 60,000 retirees and beneficiaries, roughly a third of the plan's retirees, to Prudential. RTX's 10-Ks for 2022 through 2024 report no annuity transfer.

PBGC doesn't guarantee an annuity once an insurer has taken it over. Your state's life and health insurance guaranty association backs it instead. In most states that limit is $250,000 in present value for annuities, and some states set it higher.

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.

Sources

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Frequently asked questions

Did RTX move pensions to Prudential?

Yes. In December 2025 RTX moved about $2.3 billion of obligations for about 60,000 retirees and beneficiaries, roughly a third of the RTX Consolidated Pension Plan's retirees, to Prudential. The other retirees are still paid by the plan.

When did Raytheon change its pension formula?

Legacy Raytheon non-union participants stopped earning under the historical pay-and-service formula on December 31, 2022 and earn cash balance credits after that. Legacy UTC non-union accruals stopped December 31, 2019.

Is my RTX pension PBGC-insured?

If the RTX Consolidated Pension Plan still pays you, yes, up to PBGC's limit. If Prudential took over your annuity in 2025, your state guaranty association backs it instead.