Rate Watch 2018 – August – SCE Grandfathered Pension
August’s rate is typically used for Edison’s official grandfathered pension plan interest rate. Where did it land, and how does that impact your pension?
Welcome to another edition of Rate Watch as we track the interest rate that is vital to the grandfathered pension at Southern California Edison.
The most important month of the year for grandfathered pension holders is upon us. August is typically used to set the grandfathered pension interest rate for the following plan year. Let’s take a look at where the rate it at:
August came in at 4.46 and 0.10 higher than the current plan rate. Very simply, this means that your lump sum payout value will be higher with the 2018 plan value as opposed to the 2019 value.
Again, simply put, if you are grandfathered and thinking about retiring soon, then it might be in your best interest to retire and take the 2018 value to get a higher lump sum payout.
Since the difference in potential rates is small, the change in value is probably not great enough to heavily influence a decision to retire now or continue working, but it is something that should be capitalized on if retirement is on the horizon.
If you are unsure on how to request your paperwork or the timing to make sure you receive the 2018 pension rate, then contact us for a free retirement consultation, and we can show you how you can retire with confidence.
Warren Street Wealth Advisors, a Registered Investment Advisor. The information contained herein does not involve the rendering of personalized investment advice but is limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the strategies or options presented. Any investments discussed carry unique risks and should be carefully considered and reviewed by you and your financial professional. Past performance may not be indicative of future results. All investment strategies have the potential for profit or loss.