In order to understand a 30-year Treasury lump sum, it is important to note the changes made in 2008 to calculate distributions. These changes lower the money that retirees can expect from their 30-year Treasury lump sum when compared to traditional pension benefits, according to Kiplinger.Continue Reading
In the past, periods of lower interest rates meant that the 30-year Treasury lump sum had much higher payouts than regular monthly payments. These plans used 30-year Treasury-bond yields to calculate lump sum payments. Current calculations use a corporate bond-based blended rate, which is higher. This reduces lump sum payments by a significant amount, notes Kiplinger.
A 30-year Treasury refers to a debt obligation from the U.S. Treasury with a maturity of 30 years, states Investopedia.Learn more about Financial Planning