There are a lot of benefits to working at the Boeing Company. From a solid pay package to PTO and vacation, employees can count on the Boeing Company to help them confidently get through their retirement years.
However, some employees may face retirement planning dilemmas that could decide to stay at work difficult. Fortunately, Boeing knows some of these issues and plans to help you.
Defined Benefit Plan
Defined benefit plans (often called DC plans) offer a unique retirement savings option. They allow you to invest your money and receive a lump-sum payout when you retire.
They’re usually a good choice for high-paid workers who want to save for retirement. But they carry a host of additional pension rules and administrative burdens.
They’re also less portable than 401(k)s and IRAs, so you can’t take your savings when you leave the company. Additionally, if you retire early, your pension benefits could be reduced because of a quirk in the law.
The Lump-Sum Distribution is one of the Boeing retiree benefits. It is a one-time payment from your pension administrator that gives you more flexibility than a monthly pension check. You can invest it or spend it on other needs.
Taking this option can be attractive for those who want more control over how their money is used, but it also requires careful asset management. Otherwise, a lump sum may be depleted in a short time.
Another consideration is inflation. A fixed lifetime income payment that doesn’t keep pace with inflation will erode your purchasing power.
When considering this retirement option, you should take a long, hard look at your finances and consider all your options. Then, you can make a wise decision. Be sure to understand your gift and estate planning goals, as well.
Pension Commencement Option
One of the most exciting new benefits to Boeing retirees is the Pension Commencement Option. This feature allows you to convert an existing accumulation account into a lump sum-sized pension.
The best part is that the pension commencement occurs a few days after applying. It is primarily due to administrative processing time. Still, it should be noted that the annuity starting date is retroactive to the first day of the month after the plan office receives the completed application.
The most important part of this feature is that it will give you a better understanding of how your pension pot compares to others in your industry. There are many factors to consider, including your age at retirement, your service to Boeing, and the amount of money you have in your pot at any one time.
If you’re a Boeing engineer or technical staff member, you can receive a monthly pension or a lump sum payout upon retirement. The choice may affect how you live in retirement and your financial security.
The Lump-Sum Distribution (LSD) is a one-time payment from your pension administrator. You can use the money to spend or invest as you see fit.
You can also use the lump-sum distribution to leave funds to your loved ones after you die. However, the pension payments might stop once you and your spouse die.
The lump-sum distribution is an attractive option for some retirees because it allows them to keep control of their assets and have more freedom in investing money. However, it would be best if you considered all your options before making this irrevocable decision.
Many employees may take a lump sum distribution of their retirement benefits instead of their monthly pension. It can be an important choice for some employees with union-negotiated contracts offering a generous lump sum benefit over a more modest monthly allowance.
However, not all employees have a lump sum option, and even those with this benefit usually receive a much smaller amount than their pension. It is a good idea to compare your options before deciding.
Suppose you are a terminated employee and have an account in the VIP. In that case, you may elect to roll over your vested accrued pension benefit from another plan in the Boeing Controlled Group directly into your VIP account. You will be notified of this option when it is available and can choose whether or not to accept it.