I have been reading this forum
for awhile, but this is my first post.
I can take early retirement next year.
but I had planned to work a couple
of years beyond. My company has
a pension. I can take a lump sum
distribution which is calculated using
the GATT rate [ 30 year treasury.]
Now here comes the new pension law
that takes affect in 2008. Per the article
linked below, this law will negatively affect
the value of pension lump sums beginning
in 2008, by changing the interest rate used
for the lump sum calculation from treasury
to corporate bonds.
[ Bush has already signed this into law. ]
Can anyone here explain this further ?
What is your advice ?
Pensions take their lumps
Most people who take lump-sum distributions from their defined-benefit pension plans will get slightly less starting in 2008, thanks to a provision in the pension bill awaiting President Bush's signature.