As a recruiter some of my clients ask me, “when would be a good time to leave my company?” Obviously that decision needs to be made based on an employee’s individual circumstances, but interest rates can be a major factor. Chevron employees who plan on leaving the company this year will be delighted to hear that interest rates have dropped yet again in the month of September. Interest rates are now at an all-time record low, beating the previous all-time record set last month.
But what does this mean for Chevron employees?
It means that if they leave the company in November of this year and elect to take their pension as a lump-sum they will receive a larger amount of money. Pension calculations are somewhat complex and there are a number of factors like age & years of service which determine how much money an employee receives. However, there is one rule which stays constant: when interest rates decrease, lump-sums increase. Lower interest rates are certainly a welcome change for anyone leaving the company. This development seems to be a lone bright spot for a corporation which has not had much good news in the past 6 months.
“Great News! Chevron Interest Rates Dropped Again” The Retirement Group, The Retirement Group, 11 Aug. 2020, https://blog.theretirementgroup.com/blog/chevron-interest-rates-dropped-again