Portable Pension Lump Sum Calculation
I'm eligible to receive a lump sum payment for the portable pension from a company I used to work for. Due to the decline in interest rate, my lump sum payment has jumped 30% since last year. According to the company website, the segmented corporate bond interest rates used for commencements in 2013 are .96%, 3.57% and 4.58%. I'm considering to take the lump sum payment now and have a few questions:
- How often do these corporate bond interest rates change? My pension website kind of suggests that these rates change once a year.
- If these are annual rates, does it mean my lump sum stay the same for the rest of the year? Will the lump sum change after my birthday?