REMINDER: PARTIAL LUMP SUM BENEFIT ESTIMATES

The interest rates used to calculate a partial lump election change each January 1^st and apply to any lump sums in that calendar year based on a participant’s pension effective date. In general, lower interest rates produce higher lump sums and higher interest rates produce lower lump sums.

As you are likely aware, interest rates have increased significantly over the last year.  Similarly, the required interest rates used to determine a partial lump sum payable from the Plan during 2023 have increased significantly from the interest rates used to determine a partial lump sum payable during 2022.

The interest rates applicable to the next calendar year is not known until very late in the year.  Therefore, if you received a partial lump-sum estimate based on 2022 interest rates, the partial lump-sum amount may be significantly lower as it is finalized based on 2023 applicable interest rates.  We estimate that the difference between the 2022 estimates and the 2023 actual amounts could be as much as 15-20% -- although the exact difference depends on age and payment form, and will not be known until the rates are finalized.