CAL lump sum payout increases
09-26-2011, 10:02 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Feb 2011
Posts: 3,866
CAL lump sum payout increases
The new interest rates and PDFs for the Continental Airlines Retirement Plan (CARP) are now available on Your Benefits Resources. The Benefit Center has been notified of these updates. Anyone who runs an estimate with a benefit commencement date of 1/1/2012 - 6/1/2012 will have the new rates applied. Please make sure your employees know of the rate changes, which may affect when they decide to take their retirement distributions (if eligible).
The interest rates for lump sums payable from CARP 1/1/2012 to 6/1/2012 are 2.21%, 4.43% and 5.55%. These are based upon the 30-year treasury rate for August 2011 of 3.65% and the PPA Segmented Interest Rates for August 2011 of 1.85%, 4.62% and 6.02%.
The interest rates for lump sums payable from 7/1/2011 to 12/31/2011 are 3.07%, 5.06% and 5.78%. These are based upon the 30-year treasury rate for February 2011 of 4.65% and the PPA Segmented Interest Rates for February 2011 of 2.02%, 5.34% and 6.54%.
As a result, lump sums will be higher during the first half of 2012 than they were in the second half of 2011. The following are estimated impacts:
CARP --- A lump sum of $100,000 based on the rates from the second half of 2011 would be equal to the following amounts using the rates from the first half of 2012:
Age 50 retiree = $108,000 (8% higher)
Age 55 retiree = $108,000 (8% higher)
Age 60 retiree = $107,000 (7% higher)
Age 65 retiree = $105,000 (5% higher)
These new rates were posted on the Hewitt website September 16th and employees are able to run estimates after that date.
The interest rates for lump sums payable from CARP 1/1/2012 to 6/1/2012 are 2.21%, 4.43% and 5.55%. These are based upon the 30-year treasury rate for August 2011 of 3.65% and the PPA Segmented Interest Rates for August 2011 of 1.85%, 4.62% and 6.02%.
The interest rates for lump sums payable from 7/1/2011 to 12/31/2011 are 3.07%, 5.06% and 5.78%. These are based upon the 30-year treasury rate for February 2011 of 4.65% and the PPA Segmented Interest Rates for February 2011 of 2.02%, 5.34% and 6.54%.
As a result, lump sums will be higher during the first half of 2012 than they were in the second half of 2011. The following are estimated impacts:
CARP --- A lump sum of $100,000 based on the rates from the second half of 2011 would be equal to the following amounts using the rates from the first half of 2012:
Age 50 retiree = $108,000 (8% higher)
Age 55 retiree = $108,000 (8% higher)
Age 60 retiree = $107,000 (7% higher)
Age 65 retiree = $105,000 (5% higher)
These new rates were posted on the Hewitt website September 16th and employees are able to run estimates after that date.
09-26-2011, 11:14 AM
#2
Recommend Retention
Joined APC: Jun 2007
Position: Bigfoot
Posts: 1,077
Lump sum could increase astronomically and these gummers still won't leave. Retro checks and buyouts still won't cut it. Apparently it is better to retire with more money and croak within 5 years.Yeah, yeah, I'm mean.
09-26-2011, 03:46 PM
#3
Gets Weekends Off
Joined APC: Dec 2007
Position: Cal reserve..the gift that keeps on giving
Posts: 532
Originally Posted by LifeNtheFstLne
Lump sum could increase astronomically and these gummers still won't leave. Retro checks and buyouts still won't cut it. Apparently it is better to retire with more money and croak within 5 years.Yeah, yeah, I'm mean.
Thread
Thread Starter
Forum
Replies
Last Post
