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      09-24-2021, 07:50 PM   #1
tom2021
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Drives: 2017 BMW X3 xDrive28i
Join Date: Feb 2021
Location: Canada

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Commutated value of define benefit plan

Hi all,

Trust you are well and stay safe.
I have a defined benefit plan with the company I work for.
Some define benefit plan allow a lump sum transfer to a registered pension plan outside the company of your choice.
I read that the commutated value of define benefit plan is more when the interest rate is low. Is it true?
If so, Iíd rather choose the lump sum transfer than a monthly pension.

P.S. I havenít submitted a formal request for early retirement.
I have asked the pension plan administrator about commutated value. But they are not open to respond about it. The pension plan only explains about monthly pension income after retirement. And I heard from colleague who left company that he opted a lump sum transfer.
Appreciate 0