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. San Diego Gas & Electric 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, San Diego Gas & Electric 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 San Diego Gas & Electric's retirement benefits gives you the strongest foundation. According to publicly available information, San Diego Gas & Electric maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. San Diego Gas & Electric also offers retiree healthcare benefits to eligible employees, which can provide meaningful coverage for those who retire before reaching Medicare eligibility at age 65. Understanding how each San Diego Gas & Electric benefit interacts with the others inside your retirement plan gives you the confidence to make well-informed decisions.