Originally Posted by Slow But Steady
I assume the pension is non-COLA?
If you're really relying on the pension, you sure need to look seriously at taking the monthly check. At least I would.
My pension is non-COLA as well, as was my wife's. For hers, we took the lump sum, even though the annuitized amount would have been quite a bit more than a 4% withdrawal rate will give.
For mine, they penalize us for taking a lump sum, so I'll probably take the annuity.
By the way, my wife's mega-corp used the PBGC interest rates to calculate the lump sum. They calculated the lump same based on the average of the PBGC rates for three months to five months prior to the date you take the money.
I carefully watched the rates go down after she retired, and took the money when they began to edge up. I guess it might have increased the lump sum amount by two or three percent, but as you say, better than a poke in the eye with a sharp stick.
FYI, Here's a link for the PBGC monthly rate update: Monthly Interest Rate Statement