Unlocking the Benefits – Boeing Pension Lump Sum Explained

The Boeing Company pension plan for union engineers (SPEEA) allows you to choose a lump sum or an annuity payment when you retire. The decision requires careful consideration and the guidance of a professional.

It is essential now as interest rates rise because higher segment rates cut the lump sum equivalent of a lifetime of monthly payments.

Longevity Protection

Working at Boeing comes with a lot of benefits. Tuition reimbursement, a competitive salary, and opportunities to advance your career are just some perks. But one benefit many employees value the most is a pension.

boeing pension lump sum calculated as an equivalent to a lifetime of fixed monthly checks varies with interest rates, which are set to adjust this November. If the rate increase is high enough, it could significantly slash a SPEEA engineer’s lump sum payout.

When enrolling in the VIP, you must decide who to designate as your beneficiary and how to invest your contributions. You can find information about how to do this on the My Retirement Income website or by calling the Boeing Retirement Service Center through Boeing TotalAccess.

The VIP trustee does not accept rollover contributions from IRAs that contain after-tax or nondeductible contributions. Still, you may transfer all or a portion of your pretax accounts to the VIP in other qualified employer plans maintained outside the Boeing Controlled Group.


Working at Boeing has a long list of benefits, including tuition reimbursement and competitive salaries. But the aerospace giant also offers employees a valuable perk: a traditional pension.

The value of a lump sum is determined by the actuaries who calculate it based on a series of assumptions, including mortality and interest rates. Segment rates – used to mimic the yields investors earn in high-quality bonds – are adjusted yearly, typically in November. The current trend toward rising rates may significantly impact the present value of a pension lump sum, meaning the amount employees receive upon retirement.

Regardless of what pathway you choose to take in retirement, the decisions you make now can affect your financial future. That’s why getting clear, accurate information about your options is critical – significantly as rates increase.


The Boeing Company offers many benefits, from tuition reimbursement to competitive salaries. But one perk many engineers consider to be paramount is their pension. The company’s white-collar union, the Society of Professional Engineering Employees in Aerospace (SPEEA), allows members to take a lump sum or fixed-income monthly checks for life. Generally, about half choose the lump sum.

The company’s Voluntary Investment Program (VIP) investment plan includes a Boeing Stock Fund that invests in Boeing shares. VIP allows participants to borrow money from their account, subject to certain limits and conditions—investment earnings stop when you withdraw funds and are charged interest on loans.

The couple based their decision on side-by-side retirement planning scenarios modeled in MoneyGuide, a tool many Boeing employees use for financial and retirement advice. They also consulted with their financial advisers. They had the option of rolling over their 401(k) balance plus the pension lump sum into a Rollover IRA through Olympic at Schwab, which they chose to do.

Survivor Benefits

Boeing offers employees a choice of lump sum or regular annuity payments. When an employee chooses the lump sum option, Boeing’s responsibility for the money ends when they hand it over to the individual. Those who choose the annuity option, on the other hand, will continue to receive pension payments from Boeing until their death, according to Mr. Taylor.

Managers, not members of the SPEEA union, have a separate pension plan that doesn’t include a lump-sum option. However, they may still face a similar decision as engineers with years of service in the Machinists’ plan. In those cases, a lifetime stream of monthly checks may be the better option for some managers. However, those who opt for the annuity option should know that the benefits are fixed throughout their life and will not increase with inflation. In addition, heirs cannot pass on a regular annuity payment to non-spouse heirs.

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