Whether you are planning for retirement or interested in how your Boeing company-sponsored plan fits your overall financial picture, The Retirement Group can help.
A recent study found that employees who don’t maximize their 401(k) match leave $1,336 of potential extra retirement income each year!
Benefits
The Boeing Company Voluntary Investment Plan (VIP) presents a unique retirement savings opportunity. Your VIP contributions are made on a pretax basis. This booklet explains how your contribution and other benefits are calculated under the VIP.
The boeing pension plan offers engineers in the SPEEA union, which covers more than half of its technical staff, and allows retirees to choose a lump sum or monthly checks. About half of retiring engineers have chosen the lump sum in recent years. This year, interest rate increases could make that choice less attractive.
Those who choose the monthly payments can also decide whether to have them only cover their lifetime or for their spouse’s lifetime, known as a joint survivor benefit. These decisions are essential for the financial health of the retirees. Inflection Wealth Management has been working with Boeing pre-retirees and retirees since 2006. We can help you understand your unique pension and investment plans and integrate them with your overall planning.
Contributions
The Boeing Company Voluntary Investment Plan (VIP) is an employer-sponsored retirement savings plan for eligible employees of the Company. The Company also offers a defined contribution component to the 401(k) plan for employees not enrolled in the VIP.
The Employee Benefit Plans Committee administers the VIP, which is composed of employees selected by the Company Board of Directors. The Committee’s duties are to help, apply, construe, and interpret the VIP and related plan documents and decide all questions arising.
If allowed by the Internal Revenue Code and other relevant legislation, you may choose to have all or a portion of your VIP distributions and withdrawals automatically transferred to an IRA. To learn more, see the Rollovers section of this booklet or contact the Boeing Retirement Service Center through Boeing TotalAccess. Your choice is practical the day you elect it if you act before 4 p.m. (Eastern time). More information about the VIP is on the My Retirement Income website.
Lump sum payouts
In general, employees can receive their vested pension benefits as either a lump sum or fixed monthly checks for life. The size of the lump sum is based on actuarial data and recalculated every year. Factors such as interest rates, mortality tables, and your age can change how much you are offered.
For some employees, a lump sum may be the best option. It can give you the freedom to invest your money and control how much you spend. It can also reduce the risk of outliving your assets.
If you decide to take a lump sum, it’s essential to consider other sources of income in your retirement planning. These include Social Security, employer-matching 401(k) savings plans, and personal savings. If you have questions about your situation, consider working with a retirement and financial advisor.
Annuities
Working for Boeing has many incredible benefits, including tuition reimbursement and competitive salaries. But there’s one perk many employees are especially eager to maximize: their pension.
Participants in the Company’s pension plans get a monthly retirement income for the remainder of their lives, determined by years credited and compensation data. These are defined benefit plans, and the funds are managed by a group of employees known as the Plan Committee.
Boeing has a separate pension plan for managers and nonunion staff, so the Machinists union members are unaffected by the looming cut to their lump sum payout. But for engineers who chose the lump-sum option, a 1 percent increase in segment rates could reduce their pension checks by $78,000.
The information on this page is based on the most recent Plan tax filings available. The Plan Committee has the right to change the information at any time. SimpleQDRO does not represent the Plan and does not provide investment advice.