Boeing Pension Lump Sum Calculator
Calculate the IRS 417(e) minimum lump sum for your Pension Value Plan (non-union); Boeing Company Employee Retirement Plan (IAM 751) benefit and check any offer you've received against it.
Boeing stopped non-union pension accruals after December 31, 2015, when it moved those employees to company contributions in its savings plan. Interest credits on Pension Value Plan accounts continue, based on the prior November's 30-year Treasury yield with a 5% floor and 10% cap. IAM 751-represented employees are in a separate plan, the Boeing Company Employee Retirement Plan (BCERP), whose accruals stopped October 31, 2016, when they moved to a company-funded savings plan. The 2024 IAM 751 contract raised the BCERP multiplier to $105 a month per year of service for employees eligible for it. The plan uses an account-style formula of benefit credits plus interest credits, and a single lump sum is one of its payment forms.
Enter your monthly benefit from your Boeing pension statement. Use the default segment rates or the rates listed in your plan's election packet.
For Boeing-specific options, including who pays your benefit and the PBGC check by age and form, use the Boeing pension calculator.
Boeing Pension: What You Need to Know
Plan status: Frozen
Boeing stopped non-union pension accruals after December 31, 2015, when it moved those employees to company contributions in its savings plan. Interest credits on Pension Value Plan accounts continue, based on the prior November's 30-year Treasury yield with a 5% floor and 10% cap. IAM 751-represented employees are in a separate plan, the Boeing Company Employee Retirement Plan (BCERP), whose accruals stopped October 31, 2016, when they moved to a company-funded savings plan. The 2024 IAM 751 contract raised the BCERP multiplier to $105 a month per year of service for employees eligible for it. The plan uses an account-style formula of benefit credits plus interest credits, and a single lump sum is one of its payment forms.
Buyouts and annuity transfers
Boeing's 10-K filings don't report a pension annuity transfer to an insurer, so the plan still pays its retirees. A lump sum is a regular payment option in the Pension Value Plan. Under the 2024 IAM 751 contract, BCERP participants who last accrued while union-represented, and their surviving spouses, domestic partners and alternate payees, can elect their entire BCERP benefit as a voluntary lump sum for benefit start dates on or after January 1, 2025. It's the greater of the present value of the accrued benefit or of any early-retirement annuity, using IRC 417(e)(3) interest and mortality.
Retirement eligibility
Normal retirement age 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.
Understanding your lump sum offer
A plan doesn't have to offer a lump sum. If it does, IRC 417(e) sets the least it can pay: the present value of your annuity using the IRS segment rates and mortality table. A cash balance plan usually quotes your account balance instead.
Comparing an offer to the 417(e) number tells you whether the plan is paying at least the legal minimum. It doesn't tell you whether the lump sum is a good deal for you. That depends on your health, your other income, your spouse, and what you'd do with the money. If an offer comes in well below this calculator, ask the plan which month of rates and which start age it used.
The November 2025 segment rates are 4.07% for payments under 5 years away, 5.15% for 5 to 20 years, and 6.01% beyond 20. Many calendar-year plans use them for 2026. Your election packet lists the rates your plan actually used.
Tax considerations
The lump sum is taxable in the year you receive it unless you roll it directly to a traditional IRA or your new employer's 401(k). A direct rollover (plan to IRA) is not a taxable event. Taking the cash is. If you take cash, the plan is required to withhold 20% for federal taxes, and you'll owe the remaining taxes when you file.
A $400,000 lump sum taken as cash has $80,000 withheld, but the whole $400,000 is ordinary income that year. The withholding may not cover the bill. A direct rollover defers the tax until you take money out.
When the lump sum makes sense
For Boeing retirees specifically, the lump sum can make sense when: you have serious health concerns and don't expect to reach the break-even age, you have other guaranteed income sources (Social Security, spouse's pension) that cover your baseline expenses, or you're comfortable managing a large portfolio for the rest of your life.
The annuity is typically the right answer for people who don't have other guaranteed income, whose spouse is younger and may outlive them significantly, or who simply don't want to manage a large portfolio in retirement. The guaranteed payment doesn't fluctuate with markets. It shows up every month regardless of what the S&P did.
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)
Disclaimer: This calculator is for educational purposes only. Benefit amounts, plan terms, and applicable rates vary by individual and may have changed. Verify your specific benefit details with your Boeing plan administrator or HR contact before making any election.
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Frequently asked questions
Does Boeing offer a pension lump sum?
Boeing's 10-K filings don't report a pension annuity transfer to an insurer, so the plan still pays its retirees. A lump sum is a regular payment option in the Pension Value Plan. Under the 2024 IAM 751 contract, BCERP participants who last accrued while union-represented, and their surviving spouses, domestic partners and alternate payees, can elect their entire BCERP benefit as a voluntary lump sum for benefit start dates on or after January 1, 2025. It's the greater of the present value of the accrued benefit or of any early-retirement annuity, using IRC 417(e)(3) interest and mortality.
How do I find my pension benefit amount?
Contact Boeing's benefits service center or log in to your benefits portal. Your annual pension statement shows your current accrued benefit amount. For terminated-vested participants (people who left before retiring), your benefit is the accrued amount at your separation date, not your final salary.
What happens to my pension if I die before collecting?
If you are married, federal law (ERISA) requires the default form of payment to be a joint and survivor annuity paying your spouse at least 50% after you die, unless you waive it with your spouse's written consent, witnessed by a notary or a plan representative. If you die before your benefit start date and you are vested, your spouse is typically entitled to a pre-retirement survivor annuity. Specifics depend on your plan documents.
Can I take a partial lump sum and keep some as an annuity?
Some plans offer a partial lump sum option that lets participants take a portion as a lump sum and convert the remainder to an annuity. Whether Boeing's plan offers this depends on your specific plan documents. Ask your benefits administrator before assuming the choice is all-or-nothing.