Pension Protection Act Update

U.S. Benefits - 2018 PPA Update – November 2017


The following update provides 2018 PPA estimates for the lump-sum form of distribution (commuted benefit) for participants in The Lubrizol Corporation Pension Plan. Lubrizol’s actuaries have supplied a comparison showing the percentage variation between lump sum values under the current 2017 PPA factors and projected 2018 PPA factors by age (55 through 70). The 2018 PPA Comparison chart now shows the impact of this change, now a range of changes in lump sum values depending on age. This change is due to a combination of higher interest rates and newly issued mortality tables from the IRS.

Click here to view the 2018 PPA Comparison Chart.


As previously announced, August of the current year represents the single-month period used to establish the interest rates used in the calculation of 2018’s PPA lump sum factors.

Multiplying the percentage corresponding to your age in the chart times the lump sum amount from your current PensionPath projection will provide you the estimated decrease in your lump sum amount due to the PPA factor changes. Other factors such as service, pay, age, etc. may also have an impact on your lump sum calculation. 
The projected change in lump sum factors now considers a change in mortality tables by the IRS.  As expected, the lump sum factors have been positively impacted.  For example, if you are age 62 and currently expecting a reduction in your projected lump sum for 2018 of 3%, your lump sum reduction is now estimated to be 0%.

Please be advised that the PensionPath (pension benefit calculation system) upgrade is complete and the system is now available to run calculation estimates for 2017 and 2018 so you can compare the lump sum value differences. Click here to access PensionPath. You can also access PensionPath by logging into your Profit Sharing and Savings account at  Visit the benefits website for more information.


If you are retiring in early January or February and have finalized your retirement date, please contact your benefits representative for a manual calculation. Although quite accurate, please note that all calculations done prior to your actual retirement date are estimates and not guaranteed. 

If you have any questions, please contact your site benefits or human resources representative. Or click here to view frequently asked questions.