RAP/Pension InterestRate Chart February 2021

BP Employees,

Interest rates for January (impacting May 2021 Benefit Commencement Dates) significantly increased versus December’s figures and were in line with our expectations. In 2020 we experienced historically low interest rates that were put into effect to help combat the economic impact of COVID-19. However, with an end in sight for the pandemic, January and February have seen a rapid rise in corporate and government interest rates. We anticipate this trend to continue over the coming months.

BP Employees separating from the company in 2021 should carefully monitor interest rate changes and the affect is has on the different benefit options available to you. We expect rates continuing to increase in conjunction with positive economic activity as states reopen and COVID-19 cases continue to decline.

Since the beginning of 2021, bond indexes used in forecasting the 2nd and 3rd Corporate Segment Rates have already shown significant increases – implying increases in the Corporate Segment Rates as well.

If you are planning to separate from BP in the coming months and considering taking the lump sum option, please pay close attention to the impact rising rates will have on your pension’s lump sum value. This is especially true for Heritage Employees as your pension is far more sensitive to interest rate changes versus Non-Heritage Employees, higher interest rates can negatively affect your pension’s lump sum value significantly.

Selecting the correct month to file for your pension benefits can greatly impact what you receive. By electing the wrong month, you could be inadvertently costing yourself thousands of dollars. At Capstone Wealth Advisors, one of our unique specialties is understanding the inner workings of your BP RAP Pension and how to make the correct decision when it comes to filing for your benefits. To schedule a complimentary consultation with one of our experienced advisors simply email us at info@capstonewealthadvisors.com or call us at (877)739-6007.

Regards,

Tyler E Ryan

877-739-6007

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing involves risk, including loss of principal. International & Emerging Markets investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in Emerging Markets.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

Confidentiality Notice: This email transmission and its attachments, if any, are confidential and intended only for the use of particular persons and entities. They may also be work product and/or protected by the attorney-client privilege or other privileges. Delivery to someone other than the intended recipient(s) shall not be deemed to waive any privilege.

Capstone Wealth Advisors and its representatives are separate and apart from any other named entity.