With both short, medium, and long-term rates rising over the last month, the higher average rate will result in lower lump-sums for those retiring in March of . When employees elect the month they would like to begin their pension. PG&E looks back to two months to calculate the rates used for the pension disbursement. When interest rates move up or down, your pension lump sum amount will move in an inverse relationship. Through the pandemic, interest rates dropped dramatically which has greatly increased many lump sum payments. However, rates have increased significantly over and , causing a reduction in pension lump-sums.

Should you desire to take your pension as a lump sum, PG&E will use interest rates and your age to calculate your lump sum payment. Your pension is calculated based on your last date of employment and benefit start date. The benefit calculation is a defined benefit based on your years of service and final average pay. 

Pension Lump Sum Calculation>

As you plan your financial future, understanding the full scope of PG&E's retirement benefits gives you the strongest foundation. According to publicly available information, PG&E maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. PG&E also offers retiree healthcare benefits to eligible employees, which can provide meaningful coverage for those who retire before reaching Medicare eligibility at age 65. Putting your PG&E benefits into the framework of a holistic retirement income plan reveals how each piece supports the others.