What Are My Boeing Pension Eligibility and Payment Options?

Keith's Note: "Understanding your Boeing pension options—whether through BCERP or PVP—is a key step in building a predictable, reliable source of retirement income. Carefully reviewing your eligibility, payment options, and survivor benefits can help you make informed choices that protect your Real Wealth and support your long-term retirement and legacy goals." - Keith Demetriades, CFP®, CKA® | Financial Advisor Specializing in Boeing Retirees.

The Boeing Company Employee Retirement Plan (BCERP) is a company-funded pension benefit that requires no additional contributions from eligible employees.

While other sources of retirement income, such as a 401(k), may fluctuate due to normal market volatility and your withdrawal needs, a pension is a fixed, predictable source of monthly income that can be a cornerstone of your retirement budget and your Real Wealth.

Do You Fit Into The BCERP Eligibility Checklist?

• Completed a Year of Eligibility Service.
• Paid directly through Boeing’s U.S. payroll department.
• Membership in a participating union.
• Hired or rehired before your union’s cut-off dates.

BCERP Benefit Formulas

Your BCERP benefit will be the largest of:

• Basic Benefit Formula: A fixed monthly benefit determined by multiplying Monthly Benefit Rate (which varies by union) by years of Credited Service.
• Alternate Benefit Formula: The sum of Core Benefits and Excess Benefits.
• Old Alternate Benefit Formula: For participants who were on active payroll as of January 1, 1993, or on layoff or approved leave of absence as of January 1, 1993 and later returned to active status. Based on Final Average Monthly Earnings, Years of Credited Service, and estimated monthly Social Security benefits.

BCERP Retirement Ages

• Normal Retirement: At age 65 (or the fifth anniversary of earning Credited Service if hired after your 60th birthday) your full, unreduced benefit amount is generally payable.
• Early Retirement: You may be able to retire between age 55 and 65 if you meet specific criteria, such as having 10 or more years of Vesting Service. If you retire before age 60, your benefit is reduced.
• Late Retirement: If you continue working after age 65 your Late Retirement benefit will use the same calculation as Normal Retirement. You will not be able to collect your benefits until you retire or until April 1^st of the calendar year after you turn 70½.
• Leaving Before Retirement Eligibility: If you leave Boeing with a vested benefit but before meeting Early or Normal Retirement eligibility, you can generally start receiving reduced benefits at age 65. If you have at least 10 years of Vesting Service, you can receive reduced benefits on the first day of any month after you turn 55.

BCERP Payment Options

• Lump Sum Option: Receive the actuarial present value of your benefit.
• Annuity Options
  • Single Life Annuity: Provides monthly payments for your lifetime, with no benefits after your death.
  • Joint and Survivor Annuity: Provides monthly payments for your lifetime. If your Spouse or Designated Domestic Partner outlives you, they will receive a specified percentage (50%, 75%, or 100%) of your monthly benefit for the remainder of their life. If your Spouse or Designated Domestic Partner dies before you, your monthly benefit will "Pop-Up" to the higher Single Life Annuity payment for the rest of your life.
  • Life Annuity with 10 Years Guaranteed: Provides a monthly pension for your entire lifetime, with a guarantee that if you die within 10 years your beneficiary receives payments for the remainder of that 10-year period.
  • Accelerated Income Option: Allows you to receive a larger temporary benefit until age 62 and 2 months, with a smaller benefit afterward.
• Payment of Small Benefits: If your total BCERP benefit's actuarial equivalent value is $5,000 or less following retirement, it will be paid out as a lump sum.

SPEEA and BCERP

There are some rules that are unique to Members of the Society of Professional Engineering Employees in Aerospace (SPEEA) and their individual collective bargaining units:

SPEEA Eligibility Checklist

• Professional Unit: You must have been hired or rehired before March 1, 2013.
• Aerospace Technical Unit: You must have been hired or rehired before March 22, 2013.
• Pilot/Instructors Unit (SPIU) (formerly the Airplane Manufacturing Pilots Association and before that, the Lazy B Pilot Association):
• Instructor Pilots: You must have been hired or rehired before January 1, 2010.
• Standards, Safety, Technical and Simulator-Only Pilots: You must have been hired or rehired before January 1, 2009.

Additional SPEEA Payment Options

If you last accrued Credited Service while represented by SPEEA, you may:

• Receive your entire vested BCERP benefit as a lump sum.
• Start receiving payment of your entire vested BCERP benefit at any time after you stop working at Boeing, even if you do not retire, regardless of your age, and even if you do not have 10 years of Vesting Service. There are limitations on how you can receive your benefits in this manner.

The Pension Value Plan (PVP)

The Pension Value Plan (PVP), or Plan 100, is a cash balance pension plan. The PVP was established on January 1, 1999. Benefit Credits and Benefit Service, which are components of the PVP benefit calculation, stopped accruing as of December 31, 2015. PVP Credit-Based Benefits continues to grow through Interest Credits even after accrual ceased.

PVP Eligibility Checklist

• Nonunion, salaried employees and hourly employees of Boeing Spectrolab, Inc.
• Hired or rehired before January 1, 2009.
• Paid directly through Boeing’s U.S. payroll department.
• Completion of a one-year waiting period. 
• Completion of at least 3 years of Vesting Service and credited with an Hour of Service on or after January 1, 2008 (5 years if employment ended prior to 2008), or reaching age 62 while employed or during a layoff period of 6 years or less.

PVP Benefit Formula

Your PVP benefit will be the larger of:

• Credit-Based Formula: The primary benefit, consisting of Benefit Credits plus Interest Credits converted into a monthly annuity. 
• Minimum Benefit Formula: A minimum monthly benefit, typically calculated as a flat dollar amount multiplied by your years of Benefit Service.
  • For terminations on or after December 31, 2015, the monthly Single Life Annuity commencing at Normal Retirement Date is $95 multiplied by your number of years of Benefit Service. If you were represented by the SPEEA Professional or Technical units as of December 31, 2015, you would receive $91 per month per year of Benefit Service.
  • For terminations or end of layoffs prior to December 31, 2015, the rates are:
    • January 1, 1999 – March 23, 2000: $46 per month per year of Benefit Service.
    • March 24, 2000 – March 31, 2003: $50 per month per year of Benefit Service.
    • April 1, 2003 – February 28, 2006: $60 per month per year of Benefit Service.
    • March 1, 2006 – December 31, 2008: $70 per month per year of Benefit Service.
    • January 1, 2009 – December 31, 2011: $81 per month per year of Benefit Service.
    • January 1, 2012 – December 31, 2012: $83 per month per year of Benefit Service.
    • January 1, 2013 – December 31, 2013: $85 per month per year of Benefit Service.
    • January 1, 2014 – December 31, 2014: $87 per month per year of Benefit Service.
    • January 1, 2015 – December 30, 2015: $89 per month per year of Benefit Service.

PVP Retirement Ages

• Normal Retirement: The first day of the month on or after your 65th birthday.
• Early Retirement: You may start to receive early retirement benefits at any time after termination and before age 65 if:
  • You are 55 or older when employment ends (or during the 6-year layoff period) with at least 10 years of Vesting Service.
  • You are 62 or older when your employment ends (or during the 6-year layoff period), with any Benefit Service.
  • If you have a Heritage MDC Benefit and are age 50 or older when your employment ends (or during the 6-year layoff period), with at least 30 years of accumulated Benefit Service.

If the Credit-Based Benefit is paid before age 65, the Pre-2014 portion is based on Benefit Credits and Interest Credits at commencement. Heritage Benefits or other transferred benefits may have different Early Retirement ages and adjustments. Special 2014-2015 Early Retirement eligibility and adjustment factors apply

If the Minimum Benefit is paid before age 65, it is generally reduced by 4% for each year (and proportionally for partial years) it commences prior to age 65. 

• Late Retirement: If you continue working after age 65, you will continue to earn Interest Credits on your Credit-Based Benefit until the end of the year you retire (or the year you turn age 70½, if earlier). Working past age 65 results in a "suspension of benefits," meaning you won't receive pension benefits until you terminate employment or work fewer than 40 hours per month.
• Mandatory Commencement: Benefits under the PVP must begin no later than April 1 following the calendar year in which you reach age 70½, even if you are still working for Boeing.
• Leaving Before Retirement Eligibility: If you leave Boeing on or after January 1, 2017 with a vested benefit but before meeting Early or Normal Retirement eligibility,  you are eligible to receive a benefit at any time after termination or during layoff.
  • At age 55 or later, the Credit-Based Formula's total Plan Credits are divided by an Annuity Conversion Factor between 11 and 15, depending on your age. The Minimum Benefit Formula is reduced by 6% for each year (and proportionally for partial years) your payments begin before age 65.
  • Prior to age 55, if you're not eligible for Early Retirement, the annual pension is further reduced using specific actuarial factors.

PVP Payment Options

• Lump Sum Option: A single, one-time payment of your entire vested PVP benefit.
• Annuity Options
  • Single Life Annuity: Provides monthly payments for your lifetime, with no benefits after your death.
  • Joint and Survivor Annuity: Provides monthly payments for your lifetime. If your Spouse or Designated Domestic Partner outlives you, they will receive a specified percentage (50%, 75%, or 100%) of your monthly benefit for the remainder of their life. If your Spouse or Designated Domestic Partner dies before you, your monthly benefit will "Pop-Up" to the higher Single Life Annuity payment for the rest of your life.
  • Life Annuity with 10 Years Guaranteed: Provides a monthly pension for your entire lifetime, with a guarantee that if you die within 10 years your beneficiary receives payments for the remainder of that 10-year period.
  • Accelerated Income Option: Allows you to receive a larger temporary benefit until age 62 and 2 months, with a smaller benefit afterward. For most participants, the temporary benefit is $700 per month. You can elect this option along with a Single Life Annuity, a Joint and Survivor Annuity (any percentage), or the Life Annuity with 10 Years Guaranteed option

Payment of Small Benefits: Effective April 1, 2024 if your total PVP benefit's actuarial equivalent value is $7,000 or less following retirement, it will be paid out as a lump sum. The previous threshold was $5,000.

At a Glance: BCERP vs. PCP Continuation

Real Wealth Questions

If you’re within 5-10 years of retirement from Boeing, these questions matter:

Have you confirmed eligibility for a Boeing pension benefit based on your hire date and employment classification?

Should you choose a lump sum or annuity? How does each option affect your long-term retirement cash flow and legacy planning?

What is your “breakeven age” between monthly pension payments and a lump sum distribution?

Will your pension trigger an income-related monthly adjusted amount (IRMAA) to your Medicare premiums?

Will your pension raise your income high enough to make your Social Security benefits partially taxable?

What survivor options should you elect for your pension to balance lifetime income and spouse protection? 

What To Do Next

Your Boeing pension—BCERP or PVP—can provide reliable retirement income, but your choices affect cash flow, taxes, and long-term security. Review eligibility, compare lump sum versus annuity options, and consider survivor elections in the context of your overall retirement plan.

For help evaluating your pension strategy or coordinating it with your 401(k), SSP, and Social Security, contact Keith Demetriades, CFP®, CKA®, a financial advisor specializing in Boeing retirees, for personalized guidance.