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Lump Sum Estimator |
- Attached in Excel is the corrected
(Lump Sum Estimator Tool: Click to Download), (version 2002.6)
for your calculations. (Please note: this requires Excel 97 or
higher.) This spreadsheet corrects calculations for participants
over age 65, includes the early 10% Pension Band Increase and
incorporates the band increases scheduled for July 1, 2002 and July
1, 2003.
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Q: |
WHAT INTEREST RATE IS USED FOR THE CALCULATION OF PENSION
ESTIMATES USING THE TOOL? |
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A: |
The Pension Estimator Tool uses the actual plan interest rate
to estimate lump sums for termination dates from January, 2001
up through August, 2002. This means that if you input a
termination date that is between January 1, 2001 and August 30,
2002, the tool will estimate your lump sum benefit based on the
actual plan interest rate. For these dates, you do not have to
input anything in the field labeled "Interest Rate Override". In
fact, the tool will always use the actual plan interest rate if
the plan interest rate has already been determined (regardless
of whether you input an interest rate override, or not). If you
are estimating your benefit using a termination date after
August 30, 2002, the tool will use an interest rate of 6% to
estimate your lump sum benefit. If you are trying to estimate
your benefit using a projected termination date and you would
like to calculate a lump sum based on an interest rate other
than the estimated rate of 6%, you may use the Interest Rate
Override. |
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